Markets Extend Morning Gains

The Indian markets have extended their morning gains and are trading higher by almost 0.5%. Investors are seeing some buying opportunity at the current levels in some of the stocks that have been beaten down in the past. Among the sectoral indices, Capital Goods, Bankex and Power are trading higher by more than 1% each. FMCG and Realty are the only indices trading in the negative territory.

Other Asian markets are also trading in the positive zone. The Hang Seng, Nikkei and Shanghai are all trading positive in the range of 0.14%-0.7%. This is on the back of reports that China may take some steps to fuel growth in its economy.

European markets also have opened on a positive note, with CAC and DAX trading higher by 0.64% and 0.23% respectively. Investors are taking a wait-and-watch approach on the conference call between the top economic officials on the issue of the European debt crisis. UK’s market, FTSE is closed for the day.

Back home, Hindalco is the leading index gainer, up 2.17% to Rs 117.80. Other Metals stocks are also shining, with Sterlite and Tata Steel trading higher on the bourses. NTPC, SBI and L&T are all trading higher more than 2%. Stocks like Maruti Suzuki, Bajaj Auto, Infosys and ICICI Bank are also trading marginally in the green zone.

After witnessing some buying opportunity yesterday, Tata Motors has given up yesterday’s gains and is the leading index loser. The scrip is down 2.27% to Rs 223.55. FMCG heavyweights ITC and HUL are continuing their past losing trend, down by 1.19% and 0.73% respectively. Other stocks like ONGC, Coal India, Sun Pharma etc are trading marginally in the red zone.

Prism Informatics had acquired around 20.28% stake in Idhasoft (IDHA), an unlisted company, on Apr 2, 2012. Yesterday, the company filed an update with the BSE that it is planning to acquire another 20.01% stake in the same company, thus reaching an aggregate of around 40.29% in IDHA. The stock is currently trading lower 2.62% at Rs 26.05.

The market breadth, which indicates the overall health of the market, is strong as of now. On the BSE, 1367 shares have gained, 1039 shares have declined and 122 shares remain unchanged.

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