Markets Await Reforms From FM

The Indian markets are trading higher, with both the broader indices up by over 0.6%. Investors and traders are awaiting the FM's speech on the key reforms that may get passed away today. The street expects some sort of positive move from the FM, Pranab Mukherjee, in his second last day in the role.

Among the sectoral indices, Consumer Durables, Capital Goods, Bankex and Realty are all trading higher by more than 1%. On the other hand, IT is the only index that which is trading marginally in the red zone.

The other Asian markets are trading in the red as of now. Hang Seng has given up all its morning gains, while Nikkei and Shanghai are extending their morning losses.

European markets have also opened in the negative territory today. The major indices, FTSE and CAC are trading lower by 0.25% and 0.58% respectively. DAX is among the worst losers, trading 1.26% down at the 6263 levels. The global markets are eyeing the EU summit scheduled later in the week, which could further give direction to the markets.

Back home, Maruti Suzuki continues its as the leading index gainer in today’s trading session. The stock is up by 2.18% at Rs 1125.45. Other stocks that are showing strength are GAIL India, Coal India, Tata Power, ICICI Bank, etc., all trading higher by over 1%. Bajaj Auto, Tata Steel and Sterlite Industries are also trading marginally in the green zone.

On the other hand, IT heavyweight TCS is the leading index loser, down 1.11% at Rs 1220. Other big names in the sector like Wipro and Infosys are also trading down by 0.17% and 0.12% respectively. One of the reasons for the weak performance from the IT space in today’s trading session is the rupee striking a stronger note. The currency has appreciated by 0.45 paise to 56.67 against the US dollar. Hindalco, ONGC, Cipla, Hero MotoCorp and NTPC are the other stocks which are trading in the negative territory.

The shares of SKS Microfinance are trading with 5.27% gains at Rs 68.90 after the company announced that it has hired new employees. It has secured employment for 248 displaced employees following its collaboration with leading corporates and recruitment consultancies. An additional 255 candidates have been shortlisted for various positions. The hiring indicates huge expansion plans and that the company may grow well in the coming years.

Manappuram Finance is trading 6.71% higher at Rs 26.25 after the company made an announcement saying that ICRA has held the company’s outlook on the long term rating as 'stable'.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1659 shares gained, 822 shares declined and 103 shares have remained unchanged.

However, we expect the markets to remain volatile.