Volatility Continues, Jindal Steel Up 3.5%

The Indian stock markets have remained choppy since their opening today. The BSE Sensex is trading marginally up by 0.10% and the 50-share Nifty is up 0.03%. Jindal Steel has surged 3.5% ahead of its quaterly results that are due tomorrow.

After yesterday's outlook downgrade for India by S&P, Bank of America has said there is no strong case for downgrading the country. On the other hand, UBS Securities has viewed the de-rating of the markets.The bank has also said that reforms are required for the economic growth of the country.

The rupee has gained by 5 paise against the dollar to touch Rs 52.49/dollar, while it has further lost 23 paise against the Euro to touch Rs 69.57/Euro.

The peer Asian markets are currently trading with mixed trends. Shanghai and Nikkei are trading flat, while Hang Seng is up 0.80%.

The European markets have opened in the green today.

Among the Sensex participants, besides the commendable performance of Jindal Steel, Tata Steel has surged by 1.09% and M&M is also up by 1.03%. IT stocks such as TCS and Infosys are seen gaining marginally. Cipla is still holding its morning gains. Bajaj Auto, on the other hand, is down by 3%. Peer auto company, Hero MotoCorp, is also trading in losses. GAIL India, has remained volatile after the announcement that it has suspended operations at its Dabhol terminal. The scrip has tanked over 2% today.

From the sectors, the IT index is up by 0.64% and Steel is up by 0.62%. In contrast, the Auto and PSU indices have tanked by over 0.6%, and are the top sectoral losers.

In individual stocks, Strides Arcolab announced its Mar 2012 quarter results today, reporting disappointing numbers on a standalone basis. The consolidated results, though, show a profit for the quarter. The company has also acquired a USFDA facility in Tamil Nadu. Investors have seen the result negatively and have sent the stock down 2%. However, we believe that fundamentally there is more of a positive in the stock, and investors should not sell the stock.

Compnaies that have recommended a dividend this afternoon are Panacea Biotec, Astra Microwave Products, Elcid Investments, Vakrangee Softwares, Swaraj Engines and Bank of Maharashtra.

Federal Bank has cut the Base Rate to 10.45%. The stock is seen under pressure and has lost 0.35% from yesterday's closing.

The volumes are strong in YES Bank, M&M Finance, Advanta India, United Spirits, etc. The top turnover is seen in RIL, and its stocks are up 0.15% on the back of the same. Foresco India has touched a new high after its quaterly results declaration. ITC is also witnessing new highs. Muthoot Finance has touched a new low as the new gold loan regulations would hit its business.

The market breadth is negative at this time. Of the total of 2629 stocks traded, 1097 stocks have advanced, 1394 stocks have declined and 138 stocks have remained unchanged.

The markets would continue to remain choppy ahead today.