Markets Still Holding Gains

The Indian markets are holding their morning gains and are trading comfortably in the green zone. At present, both the indices are trading higher by almost 0.5%. Among the sectoral indices, only FMCG and Auto are trading with marginal losses, while all the others are trading higher. IT, Consumer Durables, Power and Oil & Gas are up by over 1% each.

Other Asian markets are also trading in gains, with Hang Seng, Nikkei and Shanghai up in the range of 0.7%-1.6%. The investors are said to be looking at a possible improvement in the global economy, with technology firms lifted by the US results.

The European markets have also opened in the green zone today. The major indices, FTSE, CAC and DAX, are trading higher in the range of 0.1%-0.4%. The stocks rose for the second day as companies reported earnings that exceeded analysts’ estimates.

Back home, investors are seeing a buying opportunity in Infosys after the scrip was beaten down heavily in the past few trading sessions. The stock is the leading index gainer, trading higher by almost 3.13% at Rs 2244. Bajaj Auto is also trading 2.63% up at Rs 1562.40 after the company posted decent Jun quarter numbers yesterday. The Metals pack, including Sterlite Industries and Hindalco, is trading higher by almost 2%. Other stocks like NTPC, Coal India, M&M, HDFC Bank, etc. are trading with marginal gains.

On the other hand, Maruti Suzuki is the worst performer among the index stocks. The scrip has plunged 8.11% to Rs 1125. This is after the media reports which stated that one person was killed and at least 90 were injured on Wednesday, July 18, in a clash between workers and the managerial staff at the company's Manesar plant, forcing work to come to a halt. Other stocks like Bharti Airtel, ITC and ONGC are trading in the negative territory.

Stocks like Hero MotoCorp and Dr Reddy’s Labs are still trading lower ahead of their June quarter numbers announcement due today.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1492 shares have advanced, 1088 shares have declined and 140 shares are unchanged.