Markets Trim Gains, Bharti Up 3.5%

As we expected in our pre-market update, the Indian markets opened positive today. Both the benchmark indices were up by 0.5% in the first hour of the trading. In the course of the morning, however, the markets have cut their gains and are currently trading marginally up by 0.3%.

The Asian indices are trade in gains today too. Hang Seng has shot up by 1.5%, while Nikkei and Shanghai are both up by 0.5%. The markets have gained on renewed hopes that the central banks around the world will go ahead with easing fiscal measures to fight the economic slowdown.

On the sectoral front, CD is the top gainer, surging by 1.5%. Realty and Bankex are back in action on hopes of a rate cut. The Healthcare index is trading up on news that the US Supreme Court has upheld the Affordable Care Act, the law proposed by President Barack Obama.

Among the Sensex stocks, GAIL India, ICICI Bank, Maruti, Dr Reddy's Labs, HDFC and ONGC have each gained over 1% at this hour. The shares of IT giants Wipro and TCS are under pressure over reports that the firms may face pressure on new orders. It has also been reported that Infosys may cut the dollar guidance for FY12. In others, BHEL and HUL are trading lower too.

Telecom major, Bharti Airtel is nearly 3.5% up ahead of the Cabinet meeting on Tuesday, Jul 3, which is expected to consider four options on prospective spectrum pricing. The shares of other telecom companies like Tata Teleservices, Reliance Communications and Idea Cellular have also gained.

Gujarat Flurochemicals has surged by 5%. Mangalore Refineries, Sun TV and Crompton Greaves have also shown gains of over 3% in the initial hours.

The stocks of Bharti Airtel, TTK Prestige, Sadbhav Engineering, OnMobile Global, etc. have shown a rise in volumes. HDFC Bank is trading at a new high.

Shree Ashtavinayak Cine Vision, Lanco Infra, JM Financial, GVK Power, Suzlon Energy, etc. are witnessing a high turnover at this time of the day.

The market breadth is strong, as two shares have advanced for every share that has declined on BSE.

Ahead today, we expect the markets to remain volatile.