Trades Remain Choppy, Range-Bound

The Indian markets are looking quite choppy, and continue to trade in a narrow range. The Sensex and Nifty are marginally up by 0.28% and 0.24% respectively. Investor sentiment looked a bit buoyed post the results announcement by TCS. The global markets have also turned positive post the Chinese GDP numbers which grew by 7.6% for the second quarter (March-June) in 2012.

The Asian markets continue to trade in the green, but remain in a narrow range. Retail sales were up by 13.7% in June on a YoY basis, softening only slightly from May’s 13.8% growth. The sales of home appliances with large retailers was among the bright spots, rising 9.5% year on year, up from the 0.5% growth in May. A closer look at the other components of GDP data hints that the economy may see some improvement in the coming quarter, and Chinese officials may take some steps to bring the economy back on track.

After witnessing consecutive weak sessions, the European markets finally opened on a positive note today. This is on the back of the GDP numbers reported by China. However, with the growth slowing for the sixth consecutive quarter, hopes for stimulus measures have also risen in order to further growth in the world's second-largest economy.

From the Sensex shares, Infosys, Jindal Steel and Maruti Suzuki are looking under pressure, down by 0.74%, 1.42% and 0.91% respectively. TCS is up by 2.10% at Rs 1262. Of the other major gainers are GAIL India, Hero MotoCorp and ONCG, leading the charts with 1.72%, 1.16% and 1.10% gains respectively.

HDFC Bank rose by 1.54% to Rs 588.80 ahead of the result announcement by the company today.

The market breadth, which indicates the overall health of the market, is positive On the BSE, 1449 share have advanced, 1059 shares have declined and 130 shares have remained unchanged.

We believe that the markets will continue to remain choppy due to pressure from the global markets and a weak earning seasons.