Markets Recover, Trading On Flat Note

The Indian markets have recovered from their day’s low, but are trading very flat in a narrow range, with no major moves on either side. At present, both the indices are trading marginally in the green zone, up almost 0.1%. It seems that investors would wait till the next week to take fresh positions, in the meanwhile looking out for any major events domestically as well as internationally. Among the sectors, Metals, Capital Goods, Realty and Bankex are trading higher by more than 0.6% each. On the other hand, Oil & Gas, Consumer Durables, Auto, etc. are trading lower in the red zone.

Other Asian markets are trading in a mixed bag, with Nikkei and Hang Seng higher by almost 0.25% and Shanghai down by 0.75% at the 2333 levels. Bloomberg reports that the Chinese market is down as the country's biggest bank may fall short of its loan targets for the first time in at least seven years, as an economic slowdown crimps demand for credit.

Back home, the Metals stocks continue their good run. Tata Steel and Sterlite Industries are among the leading index gainers, trading higher by more than 2% each. Other stocks like DLF, GAIL India, SBI, etc. are tarding higher by over 1%. Capital Goods stocks like L&T and BHEL are also trading higher by 0.82% and 0.84% respectively. Others like NTPC, Wipro, ITC, Coal India, etc. are marginally in the green zone.

On the other hand, the Auto stocks continue to slide after the government hiked petrol prices, as investors speculate that the industry may see a lower demand. Scrips like Maruti Suzuki and Mahindra & Mahindra are trading lower by 2.19% and 1.19% respectively. Other stocks like TCS, Tata Power, Infosys, Tata Motors, etc. are marginally in the red zone.

TTK Prestige is trading 1.19% up at Rs 2960 after the company announced that it has entered into a strategic business alliance with SCHOTT. NTPC is higher by 0.28% at Rs 142.70 on news that Unit 5 (500 MW) of the Rihand Super Thermal Power project has been commissioned today. With this, its total capacity has gone to 38014 MW.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1380 shares have gained, 1098 shares have declined and 120 shares are unchanged.

We expect the markets to remain volatile, and advise investors to play with caution.