Markets Close Marginally In Green, L&T Lends Support

The Indian markets had a slow positive start and extended their gains in the noon, but closed marginally in the green at day's end. The Sensex closed higher by 0.2% and Nifty closed the day up by 0.31%. Of the sectoral indices, Capital Goods closed the session up by almost 2%. Others like Power, Bankex, Oil & Gas also ended the day higher in the green zone. However, Realty and FMCG closed the day lower by 1.52% and 1.3% respectively.

The peer Asian markets also closed the day in the green, with Hang Seng, Nikkei and Shanghai ending lower in the range of 0.15%-1%. This is after reports in the media that the Reserve Bank of Australia has cut its benchmark interest rate by 25 bps to 3.5%, the lowest since 2009, as Europe’s debt crisis and slower Chinese growth overshadowed the stronger domestic labour market.

European markets are trading in a mixed bag, with CAC in the green zone and DAX in the negative territory. Investors are cautious about the current situation and are looking forward to the G-7 conference call, which they hope, will fully resolve the Euro debt crisis.

Dow Jones Futures is currently trading very flat, down by 1 point or 0.008% at 12062, indicating a neutral US market.

Back home, Capital Goods heavyweight L&T was the leading index gainer, closing higher by 3.08% at Rs 1209.50. This was one of the stocks which held the markets, preventing it from closing in the red zone. Other stocks like NTPC, SBI and Hindalco closed the day higher by more than 1.5%. Auto stocks like Mahindra & Mahindra, Maruti Suzuki and Bajaj Auto closed the day higher in the green zone.

On the other hand, Tata Motors continued its losing momentum and closed the day lower by 3.15% at Rs 221.55. After the falling margins in the JLR segment, the company has lost its sheen, witnessing a free fall in the past couple of weeks. FMCG heavyweights HUL and ITC closed the day lower by 1.89% and 1.07% respectively. Other stocks like ICICI Bank and ONGC closed the day marginally in the red.

Essar Oil closed the day marginally in positives, up 0.4% to Rs 49.90. This was following the news that the company has completed its optimisation project and its capacity has increased to 20 mmtpa. TV18 Broadcast closed 0.53% lower at Rs 18.85 on news that TV18 and Viacom 18 will form a strategic joint venture.

The market breadth, which indicates the overall health of the market, was positive for today. Out of 3158 stocks traded on the BSE, 1590 advanced, 1435 declined and 133 remained unchanged.

We expect the markets to continue with their volatility ahead.