Markets Looking Nervous But Trading Higher

The Indian markets are holding some of their morning gains and trading higher in the green zone. Both the broader indices are trading higher by almost 0.3% at present. Among the sectoral indices, Heathcare, FMCG and Consumer Durables are up, while IT, Power, Auto and Teck are trading lower on the bourses.

The pther Asian markets are similarly trading higher, with Hang Seng, Nikkei and Shanghai all in the green zone. This is after Bloomberg reports which say that the Chinese government will boost railway infrastructure investment and which forecast a pick up in economic growth in the second half of the year.

The European markets have opened in the green zone. FTSE, CAC and DAX are trading higher in the range of 0.05%-0.4% on Bloomberg reports about a rise in European stocks amid investor speculation that the Fed may go ahead with further stimulus packages to boost growth.

Back home, Bharti Airtel has extended its gains from yesterday, and the stock is trading higher by 2.77% at Rs 328.50. Other stocks like Dr Reddy’s Labs, Sun Pharma, Hindalco and ITC are up by over 1%. Tata Steel, Infosys, Mahindra & Mahindra, Cipla, etc. are also trading with marginal gains.

On the other hand, Bajaj Auto is the leading loser, down 2.85% to Rs 1441.1. TCS continues to trade lower, currently down by 2.47% at Rs 1180. Investors are booking profit as they see a risk in the fact that the company is trading at very high valuations. Other stocks like BHEL, Sterlite Industries, ONGC, HDFC Bank and NTPC are trading lower in the red zone.

Shreeyash Industries is trading in positives, up 0.69% at Rs 29.10 after the company made an announcmnet that it has received an order worth Rs 24 crore. Eros International is trading 2.08% lower at Rs 174.50 on the announcement of the weekend box office gross worldwide collection of Rs 65 crore for the movie Cocktail.

The market breadth, which indicates the overall health of the market, is weak as of now. On the BSE, 1478 shares have declined, 1078 shares have gained and 130 shares remain unchanged.

We advise readers to play with caution.