Markets Give Up Gains, End Day Flat

The Indian markets traded higher in the green zone for the entire day, but gave up the entire gains in the last half hour of trades, closing marginally in the green zone. Both the broader indices closed almost flat, with the Sensex up 21 points and Nifty up 4 points. Investors and traders are awaiting any major news from the markets ahead of the May expiry that is on Thursday. Among the sectoral indices, IT, Teck and Realty closed higher in the range of 0.6%-1.2%, while FMCG, Consumer Durables, Healthcare and Capital Goods ended in the red zone.

The peer Asian markets also closed the day in the green zone. All the three major indices, Hang Seng, Nikkei and Shanghai closed the higher in the range of 0.7%-1.4%. This is on the back of speculations that China, the world’s second largest economy, will soon ease the monetary situation, which will fuel growth in the economy.

The European indices CAC and DAX are trading higher, while FTSE is trading marginally in the red zone on the back of speculations that the US consumer data may show improvement and the housing market is stabilising in the economy.

Dow Jones Futures is currently trading 65 points or 0.52% up at 12494, indicating a positive sentiment in the US markets.

Back home, the IT heavyweights were on the gainers list, which further helped the market to close in the green zone. Wipro was the leading index gainer, up 2.72% to Rs 409.70, while stocks like TCS and Infosys also closed higher by 1.39% and 0.81% respectively. Other stocks like SBI, Tata Steel and ONGC closed up by almost 1%. Stocks like RIL, Jindal Steel, Mahindra & Mahindra, BHEL, etc. closed the day marginally in the green zone.

On the other hand, FMCG heavyweight ITC closed the day as the leading index loser, down 1.55% to Rs 231.20. Pharma stocks like Sun Pharma and Cipla closed the day lower around 0.7% each. Other stocks like Hindalco, HDFC, DLF, Tata Motors, etc. closed the day marginally in the red zone.

GMDC closed 4.13% higher at Rs 179 after the company reported a good set of Mar 2012 quarter numbers. Its net profit jumped 41% to Rs 158 crore, while the net sales grew 16% to Rs 536 crore. Coal India closed the day 2.14% higher at Rs 321.80 after the company reported a 20% higher realisation.

The market breadth, which indicates the overall health of the market, was positive today. Out of the 3160 stocks traded on the BSE, 1571 advanced, 1455 declined and 134 remained unchanged.

Investors should watch out for stocks like Colgate, DLF, FT, GAIL, GSFC, Godrej Industries, HDIL, Jaiprakash Associates, Mahindra & Mahindra, Page Industries, etc., which are going to post their results tomorrow. These stocks may witness volatility in their price.

In conclusion we expect the markets to remain volatile for tomorrow as investors are jittery in this uncertain environment. We advise investors to play with caution.