Markets Trading Flat, Nifty Holds 5100 Level

The Indian markets opened on a flat positive note today. Investors all across the globe are now looking to the US Fed Reserve in the hope that it will announce some stimulus measures to boost growth in the economy at its meeting tomorrow. The Sensex and Nifty are up by 0.11% and 0.16% respectively. Among the BSE sectoral indices, Consumer Durables, Power and Pharma are leading with gains of 0.97%, 0.75% and 0.72% respectively. IT and Teck are down by 0.40% and 0.39% respectively.

The Asian markets have opened positive today based on growing speculations that the US Fed Reserve will announce a new round of stimulus measures to help combat slower growth and the impact of the Euro zone sovereign debt crisis.

Among the Sensex shares, Infosys continues its slide, dropping 0.76% to Rs 2460 on the back of news that the company will reduce its guidance further on the back of huge volatility in the global currencies. In others, Metals shares such as Hindalco Industries and Sterlite Industries are trading up by nearly 0.5% on the back of a rise in the metal prices in the international market. Of the major gainers, Tata Motors, Jindal Steel and BHEL are up by nearly 2% each.

Cement stocks are seen under pressure following news that these companies will be fined by the CCI over alleged cartelisation of cement and raising cement prices.

Reliance Communications is marginally down by 0.6%. Yesterday, the scrip was penalised by 5% after research firm Veritas downgraded the stock to 'sell' and cut the price target to Rs 15 as against the current market price of Rs 62 per share.

The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1406 shares have risen, 507 shares have declined and 112 shares are unchanged.

We expect market to remain volatile. The European markets are expected to provide some vital cues on the desired direction of the market trend in the late afternoon session.