Markets Lose Morning Gains, Bajaj Auto Net Down 45%

The markets have halved their morning gains in the course of the day. The negative opening in the European markets has sent negatives signals to the Indian equity markets.

Peer Asian markets are showing mixed trends. The Nikkei has surged further on the positive GDP data. The Shanghai markets have also gained. The Hang Seng, on the other hand, have slipped into negatives.

The European stocks have declined on the disappointing news that Spain's GDP shrank by 0.3% in the Jan-Mar 2012 period. It seems that the worries in Europe are increasing, rather than giving any respite to the global economy. FTSE is trading lower by 0.56% at the moment, while CAC is down 0.64%.

There is news that the Indian government is trying to get higher credit ratings from the global credit ratings agency, Fitch Ratings. Earlier, in April 2012, S&P downgraded India’s outlook. Morgan Stanley has said that there would be another 50 basis points' repo rate cut by FY13.

Meanwhile, the rupee has stayed above the uncomfortable levels, and now stands at 54.45 against the dollar.

Among the sectoral indices, FMCG has gained over 2% and Realty is up by 1%. All the other indices are nearly flat in their trades. The CG index is down by 2.5%.

From the Sensex stocks, ITC is trading up by 3% at this hour. Some buying is also seen in DLF, as the stock has gained 2.26%. The shares of HDFC, Jindal Steel and RIL have gained over 1% each. On the other hand, Cipla has tanked nearly 3% over allegations from Bayer that the company breached the latter's patents. L&T is also down 2.7% as its order book has taken a beating, as per its recent financial numbers. The shares of Bajaj Auto are down 1.75% as the company reported a 45% fall in its net profit in the Mar 2012 quarter.

In other stocks, Cummins India has lost nearly 8% today. Pantaloon Retail is also seen under selling pressure. IRB Infra, which was seen gaining a bit in this week, has now lost 2%. The shares of AstraZeneca have seen higer volumes, and it has gained 15% as yet. Dish TV India has gained over better quarterly results that it posted. Hexaware Tech, NMDC and United Breweries are also trading with gains.

Kirloskar Oil Engines has touched a new high in this afternoon.

The market breadth is still positive at this hour.

We expect the markets to remain volatile as they are showing no clear direction.