Markets Negative, IT Down 2.6%

The Indian markets have turned volatile this morning even after the government deferred the General Anti-Avoidance Rules (GAAR) by a year yesterday. The Sensex is down by 100 points, while Nifty is trading lower by 32 points. The IT index has lost 2.65% at this hour after the private non-listed IT giant, Cognizant, cut the guidence for the year from 23% to 20%. The company has also indicated that the demand is not as strong as it looked earlier.

Globally, the European markets closed lower after weak job data reported in the US. In the Asian markets, the scenario is mixed. Nikkei is up 0.66% after Monday's steep losses, while the Hang Seng and Shanghai are trading lower.

Meanwhile, the rupee has finally appreciated against the dollar and other currencies after the RBI’s intervention.

Among the Sensex stocks, GAIL has gained 3.43%. Coal India has surged by 2.42% after FICCI asked the government to privatise the company. DLF is also up by over 1%. HDFC, which posted its results yesterday, has surged by 0.76%. Its loans disbursals are seen declining, while the net interest margins are intact. The net profit was up by 16% to Rs 1326 crore. The shares of the country’s largest IT company, TCS, are down by 3.77% over the weak outlook reported by Cognizant. Infosys and Wipro are also down by 2.49% each. Capital Goods stocks like BHEL and L&T are trading down.

On the sectoral front, the PSU index has surged 1% at this time of the day. FMCG, Realty and CD are marginally up. IT and Teck are both down by over 2% at this hour.

In individual stocks, the shares of MMTC have rallied by 11%. The company is expected to report its Mar 2012 quarter performance on May 15, and the markets expect good growth in the earnings. Hindustan Copper has also rallied by 7% over the news of disinvestment. IRB Infra has recoved partially, and the shares of the company are trading up by 3%. Indraprastha Gas has also surged by 3.2% as the Petroleum Board has shown its resentment on the government's decision to cap the marketing margins on natural gas players.

Glenmark Pharma has surged 1.8% as the company received a new product approval yesterday. It will also post its Q4 earnings today.

Companies like Bombay Dyeing, Jai Corporation, Orchid Chemicals and Torrent Pharma have filed their notes stating that their boards may consider dividends. The shares of Brigade Enterprises, OnMobile Global, Aptech, Tata Elxsi and GMM Pfaudler have all surged after the managements of the respective companies have recommended dividends.

SRS Real Infrastructure, MMTC, STC, Hindustan Copper and Arvind have shown a rise in volumes. SBI, TCS, MMTC, IRB Infra and RIL are the top five shares that have shown a rise in turnover.

Oswal Agro, Asian Paints, WPIL, et.c have reported new highs today. On similar lines, Minolta Finance is trading with new lows.

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

Ahead in the day, we expect the markets to remain volatile with a negative bias.