Markets Move Higher

The Indian markets have finally seen some buying opportunity after being beaten down significantly in the past few trading sessions. The Sensex and Nifty are both recovering from their morning lows, trading up 0.72% and 0.64% respectively. Among the sectors, Capital Goods, Bankex, Realty and Metals are trading higher by more than 1% each. On the other hand, the Consumer Durables, Auto and FMCG indices are trading marginally in the red zone.

European markets have opened trades in the positive. According to media reports, the reason behind this was the German economy, which showed growth of approximately 0.5% in the first quarter against the street's estimates of 0.1%.

Back home, Capital Goods heavyweight, L&T, is trading higher by 4.14% at Rs 1207.80, and is also helping the markets trade higher. Metals stocks are seeing some buying opportunity after having been beaten down heavily in the past few trading sessions. Hindalco, Jindal Steel, Sterlite Industries, etc. are up by more than 1% each. Other stocks like Tata Power, SBI, RIL, BHEL, etc. are marginally in the green zone.

On the other hand, telecom major, Bharti Airtel, is trading lower by 2.59% at Rs 299.50. Auto stocks like Maruti Suzuki, Tata Motors and Mahindra & Mahindra are down in the range of 0.5%-2%. Others like TCS, ONGC, HUL, etc. are trading marginally in the red zone.

Clutch Auto is trading higher 1.75% at Rs 26.20 after news that the company has started its commercial production and added 2 more production locations. Divi's Labs is trading up by 2.38% at Rs 903.50, and has also made a new high of Rs 925.90 during the day after reporting a good set of Mar 2012 quarter numbers. The stock extended its gains from yesterday.

The market breadth, which indicates the overall health of the market, is weak at the moment. 1266 stocks declined, 1148 stocks gained and 150 stocks remained unchanged.

We expect the markets to remain volatile for the rest of the day.