Markets Up 2%, All Sectors In Positives

The Indian markets are trading higher, with the broader indices both up by almost 2%. This is after the markets were beaten down quite heavily in the past one month. Investors are seeing buying opportunities in beaten down stocks as they are trading at attractive levels. All the sectors are currently trading positive. The Auto index is been the major gainer, trading higher by more than 3%. Others like FMCG, Power and Metals are also trading higher by over 2%.

Other Asian markets like Hang Seng and Nikkei are trading higher in the green zone, while Shanghai is trading marginally down by 0.1%. Investors are speculating that the Chinese government may take some steps to fuel growth in the economy. Also, according to media reports, Australia has declared its GDP data, which was twice the street's forecast.

European markets also have opened on a positive note with FTSE, CAC and DAX trading higher in the range of 0.8%-1%. Investors remain hopeful that the European Central Bank (ECB) may slash the rates in its meet today.

Back home, there are no losing stocks on the index, with all of them trading higher in the green zone. Tata Motors is the leading gainer, up 5.19% to Rs 233.05. This is after the stock was beaten down by more than 25% in the past one month on account of the lower margins in the JLR segment. Other Auto stocks also saw buys, with Hero MotoCorp and Maruti Suzuki trading higher by 5% and 3% respectively.

Jindal Steel, Tata Power, Sterlite Industries, NTPC, etc. are up by over 3%. FMCG stocks, popularly known as defensive bets, also saw some buying, and ITC and HUL are trading higher by 4% and 3% respectively at this hour. Other stocks like RIL, HDFC, ONGC, etc. are trading marginally in the green zone.

Ashok Leyland is trading higher 2.77% at Rs 25.95 after the announcement that the company has bagged orders for 50 vestibule buses worth USD 6 million from Bangladesh. Dr Reddy’s Labs is trading marginally higher up 0.52% at Rs 1627.25 on news that it has announced a collaboration with Merck Serono to develop and commercialise biosimilars.

The market breadth, which indicates the overall health of the market, is strong as of now. On the BSE, 1649 shares have gained, 814 shares have declined and 111 shares remain unchanged.

We expect the markets to remain volatile with a positive bias.