Markets Volatile Ahead Of F&O Expiry

The Indian markets are showing volatility ahead of the F&O expiry. Yesterday, the ratings agency S&P downgraded India's outlook from 'stable' to 'negative' with the credit rating BBB-. Moody’s has also said that the political situation will harm business growth, and that real growth would be seen only after 2014. Moody’s commented today that the subcontinent would not remain subdued for a long time.

The other Asian markets are currently trading without any direction. Nikkei and Shanghai are trading with marginal losses, while Hang Seng has surged by nearly 0.5%.

On the global canvas, the US and European markets ended in gains yesterday, as Apple reported better earnings growth and the sentiment was lifted to positive. The US Federal Reserve has decided to leave its monetary policy unchanged, as it sees the interest rates at comfortable levels currently.

Among the Sensex stocks, Infosys has gained 1% after bearing heavy selling pressure in the last few sessions. Cipla is also up on the announcement of a new drug for malaria. In the Auto space, M&M and Bajaj Auto are both marginally up. Of the others, TCS is showing flat trades today. GAIL India has tanked 2.02% at this hour after it announced that it has suspended operations at its Dabhol terminal. Hero MotoCorp, DLF, Sterlite and HUL have all tanked by more than 1%.

On the sectoral front, there is not much to speak of. The CD index is up by 0.52%. Teck, IT and HC are the only other indices trading in the green. All the other sectoral indices are trading flat to negative.

In individual stocks, United Spirits is seen rising for the 3rd consecutive day. The scrip is up 4% after its promoters clarified earlier that they will not sell their stake in the company. Idea Cellular is expected to report a growth of 26.8% QoQ in its profit after tax of Rs 255 crore in the Mar 2012 quarter. Therefore, the stock saw a surge this morning, and is currently up 3.12%.

Eicher Motors, Tata Communications and Indiabulls Real Estate each have surged by over 2%. The shares of ICICI Bank have also risen as the bank has sharply cut its stake in Kingfisher Airlines.

Hindustan Zinc has surged by nearly 1% after a report in the Economic Times said that the company is set to become one of the 10 largest silver producers globally by 2013-14.

Oberoi Realty has surged after declaring its Mar 2012 quarter result. The company has also declared a dividend. Gujarat Gas has surged by nearly 1% after signing an Asset Exchange Agreement with GSPC Gas. Investors have sent the shares of Tinplate Company of India up by 1.5% after the company recommended a dividend of 85 paise on the face value of Rs 10. Avantel has informed the stock exchange that a board meeting will be held on 30^th April, 2012, to approve the financial results and recommend a dividend. The stock has surged by nearly 6%.

Companies like YES Bank, M&M, etc. have shown a rise in volumes as well as turnover at the moment.

Foseco India and Hero MotoCorp have recorded new highs today. Kajaria Ceramics is still trading at a high. Natco Pharma has also touched a fresh high. On similar lines, MCX has touched a new low today.

The market breadth, which indicates the overall health of the market, is negative as more stocks have declined.

Yesterday's FII and DII statistics show that FIIs were net buyers, while DIIs bought net shares worth Rs 40.70 crore.

The markets are expected to remain volatile today ahead of the derivatives expiry.