Markets Range-Bound, Europe Opens Green

The Indian markets have continued to remain choppy in their trades, giving no direction on how the day’s end would be. Both the benchmark indices are swinging between the red and green zones. The Sensex is currently up by 0.36%, while Nifty is up 0.41%.

Favourable signs are coming in from the global indices, which are trading firmly in positives. The Asian indices, which were seen cutting their gains in the morning hours, are now trading in green. Shanghai is up by 1.26% and Nikkei is also up 0.6%.

The cues from the European markets are also strong. All the three key European indices are trading in the green after a positive start to the day.

Meanwhile, Bank of America has predicted that the RBI may cut the CRR by 50 bps and the Repo rate by 25 bps.

On the sectoral front, the Auto index has lost 1.23%. Healthcare, which was in red in the morning, has turned its losses into gains over the news that the Union Minister for Health and Family Welfare has stressed on the collaboration with USA in food and drug regulation. The CG index is trading up by 1.44% amid all the negativity created due to the IIP data. The sector heavyweights, L&T and BHEL, are both trading significantly up. Besides, other companies in the index, viz. Alstom Projects, ABB, Alstom T&D, Suzlon Energy and Punj Lloyd, are also up, giving an upward push the index.

Among the Sensex stocks, L&T is up by nearly 4%. The shares of HUL, ICICI Bank, Sun Pharma, BHEL, Jindal Steel and ONGC are trading up by over 1% each. On the other hand, Maruti Suzuki has lost 3% over the merger with the Suzuki Powertrain. Sterlite Industries and Tata Motors are also trading down at this hour. RIL has tanked by 1% after it said that the KG-D6 output will be lower than expected.

In other stocks, United Spirits, United Breweries and JP Infratech are holding its gains. Pharma company Strides Arcolab has gained 3% with strong volumes.

Fortis Healthcare has said that its diagnostic arm, Super Religare Laboratories, has signed agreements with NYLIM Jacob Ballas India Fund III LLC, Mauritius and International Finance Corp for an equity infusion of Rs 370 crore. The shares of the company are up by 1.6%.

The shares of Reliance Communications are trading firm with gains of 2.47% after the company received approval for an IPO in Singapore.

The current market breadth is positive, as 1404 stocks have advanced against 1063 declines.

A spurt in volumes is seen in the stocks of IDFC and United Breweries. The shares of Liberty Phosphate have touched a new high at Rs 94.70.

Going ahead, we expect markets to remain volatile with a positive bias.