Markets Trading Strong, Sectoral Indices Up

The Indian markets opened in the green today, and are trading comfortably higher now. At present, both the indices are trading higher, with the Sensex up by 120 points at 17100 and Nifty up by 40 points at 5184. All the sectoral indices are trading higher, with Realty, Bankex and Consumer Durables among the leading gainers, up more than 1.5% each. Others like IT, Teck and Healthcare are trading marginally higher.

The other Asian markets are trading in a mixed bag. The Hang Seng is trading up by 0.34%, while Shanghai and Nikkei are down by 0.55% and 0.4% respectively. Investors are in anticipation of the EU summit, which is expected to provide cues for the market.

Back home, Maruti Suzuki is the leading index gainer, up 2% to Rs 1123.3. The winning momentum is carried further by the banking heavyweights like ICICI Bank and SBI, which are trading with gains of 1.88% and 1.75% respectively. Other stocks like GAIL India, Coal India, Tata Power, Jindal Steel, etc. are trading higher in the green zone. TCS, Wipro, ONGC, etc. are also in gains.

Indian Hotels is trading higher by 1.25% at Rs 60.55. The scrip is extending the rally it saw on Friday, Jun 22, on the back of media reports that the company's directors have approved the allotment of 48 million ordinary equity shares (Re 1 each) to its promoter Tata Sons at a premium of Rs 102.64 per share, aggregating to Rs 497.47 crore. Relaxo Footwear is also trading 3.51% up at Rs 499 on news that the company has planned a capex of around Rs 70 crore in FY13.

The market breadth, which indicates the overall health of the market, is very strong as of now. On the BSE, 1647 shares have advanced and 529 shares have declined. 93 shares are unchanged.

For today, we expect the market to remain volatile with a positive bias.