Markets Extend Some Of Their Gains

The Indian markets are looking pretty range-bound but have extended some of the gains on the back of the missed opening of the European markets. The global markets have been playing a muted role for the past few days. Buying at lower levels today led the trade in the positive territory. The Sensex and Nifty are both up by 0.53%.

After opening on the positive side, the Asian markets have lost all their gains and are currently trading in the red. The Hang Seng, Shanghai and Nikkei are down by 0.28%, 0.44% and 0.29% respectively.

The European markets opened on a mixed, flat note today, as investors were disappointed with the European leaders’ responses to tackle the debt crisis over the past one month. However the rumours surrounding the implementation of the Spanish bank assistance plan could create a slightly bit better atmosphere. FTSE is marginally up by 0.07%, while CAC and DAX are down by 0.04% and 0.23% respectively.

All the BSE sectoral indices are trading in the positive zone as of now. Among the major gainers, Auto, Consumer Durables and Bankex are up by 1.35%, 1.26% and 0.90% respectively. All the others are trading in the range of 0.09%-0.83%.

Back home, among the Sensex shares, Bajaj Auto, Hero MotoCorp and Tata Motors are leading with 1.45%, 1.23% and 2.50% gains respectively. Tata Motors is up on news that the company will buy auto components at a cheaper rate from China. Others like Bharti Airtel, Dr Reddy's Labs, ICICI Bank and Maruti Suzuki are up nearly by 1% each.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1534 shares have risen and 1110 have fallen, while 113 shares are unchanged.

We expect the markets to remain volatile with a positive bias for rest of the day on the back of buying at the lower levels.