Markets Trading Higher

As mentioned in our morning updates, the Indian markets opened in the positive territory extending yesterday’s gains. At present, both the indices are trading higher, with the Sensex up by 87 points at 16270 and Nifty up by 24 points at 4906. Among the sectors, Auto, Oil & Gas, Consumer Durables and IT are trading higher, while Healthcare and Realty are trading marginally lower on the bourses. The Indian economy is currently facing serious headwinds on account of the rupee depreciation.

The other Asian markets are also trading trading higher, with Nikkei, Hang Seng and Shanghai trading higher in the range of 0.5%-1.1%. According to media reports, China and Europe will take some steps to boost their economic growth.

Back home, Tata Motors is the leading index gainer, up 2.23% to Rs 267.60. Capital Goods heavyweight BHEL has continued yesterday's winning momentum, and is trading higher by 1.91% at Rs 210.4. ITC witnessed some buying after investors booked some profits on the scrip yesterday. The stock is trading 1.32% higher at Rs 238.35. Other stocks like Maruti Suzuki, Bajaj Auto, Sterlite Industries, Bharti Airtel, etc. are trading marginally in the green zone.

On the other hand, Tata Power is trading 2.15% lower at Rs 93.45 ahead of its Mar 2012 quarter numbers declaration. Other stocks like Sun Pharma, L&T and DLF are also trading lower in the range of 0.8%-2%. SBI has seen some sought of profit booking after the scrip rallied almost 8%-10% in the last couple of trading sessions. The scrip is down by 0.37% at Rs 2000. Shriram EPC is trading 4.47% lower at Rs 57.75, and has made a new low despite bagging an order worth Rs 165 crore from Kerala Water Authority.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1187 shares advanced and 806 shares declined. 102 shares remained unchanged.

We expect the markets to remain volatile for the day.