Nifty Touches 5000 Mark

The Indian markets opened trades on a flat positive note today. The Sensex and Nifty are up by 0.20% and 0.06% respectively, with the Nifty touching the 5000 level. Some value buying at the lower levels and the rupee's recovery against the dollar has kept the markets in gains. Among the BSE sectoral indices, Bankex, CG and Pharma are leading with gains of 0.64%, 0.58% and 0.55% respectively, while CD, FMCG and Tech are down by 0.39%, 0.26% and 0.13% respectively. The rupee has appreciated to the 55.25 levels, which is positive for the Indian economy.

Other Asian markets opened on a mixed note but turned positive as investors gave more consideration to the news of political progress in Greece against news of Spain's deteriorating financial situation. However, the concerns on the outlook of Spain are still mounting. Yesterday, the Spanish government announced funding an ailing bank with its sovereign fund. Systemic risk is on the rise, and the problems have increasingly become circular, with banks themselves being large holders of government debt. Spain has become another problem child for the European Union, as bond yields approach 6.5%-7.0%.

Of the Sensex shares, index heavyweights BHEL, Maruti Suzuki and Tata Motors are leading with gains of 1.11%, 1.02% and 1.19% respectively. Among the major losers, Bajaj Auto, Hindalco and ITC are trading lower by 1.04%, 1.09% and 0.54% respectively.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 923 shares have risen and 718 shares have declined. 79 shares are unchanged.

However, with no big triggers, we expect the markets to remain flat with a negative bias for the day. The European markets could provide some vital cues on the desired direction of the market trend in the late afternoon session.