Sensex Hovers Around 17k

As mentioned in morning updates, Indian markets opened positive in line with global cues. At present both the Indices are trading higher with the Sensex up 95 points at 17001 levels and Nifty up 33 points at 5153 levels. Among the sectoral Indices, Power, Bankex, Metals etc are trading higher in the green zone while Auto, Consumer durables, Oil and gas etc are trading marginally lower in the red zone.

Other Asian markets have also pared gains with the major Indices like Hang seng, Nikkei and Shanghai trading higher in the range of 0.3 to 1.1 per cent. This is after Investors speculate that China will add some stimulus in order to boost the economy and hope that the outcome of European summit would probably be positive boosting the world economic growth.

Back home, Tata Power is the leading Index gainer up 2.77 per cent to Rs 98.15. This is after power companies have hiked the tariff rates in Delhi. Also there are reports that there may be tariff hikes in other states soon. Banking stocks also pushing the markets northwards with stocks like ICICI bank and HDFC bank trade higher 1.4 and 1.18 per cent respectively. IT stocks like Infosys, Wipro and TCS pare some gains in the range of 0.6 to 1.1 per cent after they looked lackluster in yesterday’s trading session.

Other stocks like Bajaj Auto, Dr Reddy Labs, Jindal Steel, Cipla etc are trading marginally in the green zone.   On the other hand, Tata Motors is the leading Index loser trading down 1.4 per cent to Rs 243.2. Other stocks like ONGC, Mahindra and Mahindra, HUL, RIL and Bharti Airtel are trading on the lower side in the red zone.

Cords Cable Industries is up whooping 9 per cent to Rs 25.45, after the company made an announcement that it has Bagged first order from Portugal's Largest Electrical & Electromechanical Group. Kingfisher Airlines plunged 7.89 per cent to Rs 12.37, after the news report that the lessors have taken back around 34 aircraft from the company after it de-faulted the payment of its rent.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1420 shares advanced and 661 shares declined, 105 shares remained unchanged.

We expect the market to remain volatile for the day.