Markets Remain Volatile, Extend Morning Gains

The Indian markets remained volatile, though they have gained some positive momentum in the afternoon trading session. This was on the back of some buying in the beaten down stocks and a positive opening in the European markets. The Sensex and Nifty are both up by 0.91% and 0.76% respectively.

The Asian markets continue to trade on a negative note on the back of renewed concerns from the rising Spanish bond yield which is hitting levels of 7.13 on 10-year bonds. The major Asian indices such as Hang Seng, Nikkei and Shanghai are down by 0.29%, 0.75% and 0.66% respectively.

The European markets opened in the green zone today post the Greek poll results and on hopes that the New Democracy party will shake hands to form a coalition agreement with the socialist Pasok party. However, Spain's soaring government bond yields will limit the gains today. The concerns have renewed over the Spanish debt auction and the rising yield. Further, the markets are awaiting the German data for fresh clues on the depth of the Euro zone crisis and also for the US Fed Reserve meeting for any possible market-friendly stimulus action. FTSE, CAC and DAX are up by 0.78%, 0.19% and 0.34% respectively.

Back home, among the individual stocks, the country's largest oil & gas producers Reliance Industries and ONGC climbed by 1.85% and 2.5% respectively. IT major Infosys slipped on reports that company may be forced to trim its already low dollar revenue growth guidance for the year ending Mar 2013 due to the wild swings of the global currencies.

The market breadth, which indicates the overall health of the market, is positive at this hour. On BSE, 631 shares have risen and 491 shares have fallen, while 62 shares are unchanged.

We expect the market to remain volatile for rest of the day on the back of weak global markets and persistent domestic issues.