Nifty Hovers Around 4800

The Indian markets have recovered from the day’s early lows, and are trading lower by almost 0.6%. Nifty is hovering around the 4800 levels, while the Sensex is trading around 15900. The pessimistic sentiment from last week has continued, as a result of which, we are seeing the markets trading lower. Among the sectoral indices, Consumer Durables is the major one on the losing side, down almost 4%. Others like Realty, FMCG and Metals are also trading lower by more than 1% each. Oil & Gas and Capital Goods are the only sectors in the positive territory.

The other Asian markets are also trading on a weaker note, with Nikkei, Hang Seng and Shanghai down in the range of 1.7%-3%. According to media reports, China’s services sector is expanding at its weakest pace in more than a year, dampening hopes that it could take up some of the slack from the slowing manufacturing industries.

European markets also opened trades in the negative territory, with the CAC, DAX and FTSE trading down in the range of 0.5%-1.5%. This is on the back of investor speculation that the sovereign debt crisis could get worse.

Back home, GAIL India is the biggest index loser, down 3.35% to Rs 320. FMCG players are also playing spoilsport, and HUL and ITC trading lower by 2% and 1.5% respectively. Other stocks like DLF, Jindal Steel and Bajaj Auto are lower by more than 2% each. M&M, Maruti Suzuki, Infosys, Hindalco, etc. are marginally in the red.

On the other hand Oil & Gas heavyweights, ONGC and RIL, are are among the leading index gainers, higher by 2.5% and 0.92% respectively. Other stocks like L&T, Hero MotoCorp, BHEL and Coal India are trading marginally in the green zone. The shares of Tata Motors are seeing some buying opportunity and trading 0.85% up to Rs 226.40 after being beaten down heavily last week. Investors had dumped the stock last week on the back of dismal margins from the company's JLR segments.

Future Capital Holdings is trading 4.31% higher at Rs 142.90 on news that US private equity firm Warburg Pincus LLC is set to buy a majority holding in the company for $100-$125 million, paying Rs 165-170 per share. The shares of Man Industries are also trading higher by 1.95% at Rs 99.10 after the company bagged orders worth Rs 800 crore.

The market breadth, which indicates the overall health of the market, is weak as of now. On the BSE, 1551 shares have declined, 890 shares have gained and 126 shares have remained unchanged.

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