Trades Remain Marginally Positive

The Indian markets have remained in the positive territory, and are trying to show some strength. At present, the Sensex is marginally up by 0.13% and the Nifty has gained 0.08%. Among the sectoral indices, FMCG, Power and IT are trading in the green zone, while Bankex, Oil & Gas, Auto and Healthcare are trading in losses.

Globally, investors are watching out for the EU summit, which will provide further direction for the markets. The Asian markets are trading in a mixed bag, with Hang Seng and Nikkei trading in the green zone while Shanghai is trading in negative territory. Nikkei is up after media reports stating that Japan’s retail sales rose more than what was forecast for May 2012, a sign that consumer spending could help sustain a rebound in the world’s third-largest economy. The Chinese market is also seen to be trading lower, erasing the year’s gains on concerns of a manufacturing slump.

The European markets have opened with moderate gains today. The FTSE, CAC and DAX trading higher in the range of 0.1%-0.2%. Investors are keenly awaiting the outcome of the EU summit which would be released later today.

Back home, the Power stocks are still trading higher in the green zone. NTPC and Tata Power are leading the index with gains of 1.45% and 1.13%. This is after power companies in Delhi have hiked the tariff rates. Other stocks like BHEL, Tata Steel, ICICI Bank, Maruti Suzuki, Cipla, HDFC Bank, etc. are also trading higher in the green zone.

On the other hand, Tata Motors continues to be the leading index loser, down 1.53% at Rs 235.40. The stock has extended its losses from yesterday as the company has decided to shut its Jamshedpur plant for 3 days. Among others, GAIL and SBI are down by over 1% each. ONGC, Mahindra & Mahindra, HUL and RIL are trading on the lower side in the red zone.

Strides Arcolab is trading 0.97% higher, extending yesterday’s gains after the company made an announcement that it has redeemed FCCBs worth USD 80 million. Gati is trading higher by 1.67% at Rs 42.70 on the announcement that Japan's KWE has invested Rs 267.7 crore in its subsidiary, Gati-Kintetsu Express. Rolta India is trading with 4.02% gains at Rs 78.85 after company redeemed FCCBs worth USD 134.7 million that were due in June 2012.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1338 shares have gained, 1105 shares have declined and 130 shares are unchanged.

We expect the markets to remain volatile, and advise readers to play with caution.