Markets Remain Up, Europe Opens In Green

The markets seem hopeful of a rate cut in RBI's monetary policy review slated for tomorrow. The positive sentiment has spread across the sectors and has also lifted the FMCG index from the negatives to the positives. At this time, both the indices are trading with gains of 1.5% each.

Meanwhile, Citibank has said that it is 'underweight' on India again. Bank of America, on the other hand, seems very optimistic about RBI's monetary policy announcement and expects a 25 bps rate cut tomorrow. However, it should be noted that the monsoon has been very low, which may further spike inflation. Investors and traders are advised to take only low positions if at all they are bullish on the rate cut.

The Asian markets continue to remain strong. The Shanghai index, however, is still in negatives over the concerns over earnings.

Europe has opened positive today. Very early in trades, CAC and DAX were up by 0.77% each, while FTSE was up by 0.44%.

Back home, the Northern grid power failure, said to be the worst in the decade, has been partially resolved. The international airport operations in Delhi have resumed, though the Metro railway service still remains affected. Nevertheless, both the related stocks, NTPC and Power Grid, are in gains since morning.

From the indices, the interest rate-sensitive Bankex and Realty are leading the rally, with gains of over 2.3% each. CG and Power are both up over 2% too. Another rate sensitive index, Auto, is in 1.82% gains. Oil & Gas and FMCG remain laggard, but are still trading in positives.

Among the Sensex stocks, ICICI is still the top gainer, though it has cut its gains to 3.85%. SBI and Tata Motors are both up by over 3%. Cipla, Sun Pharma, Mahindra & Mahindra, BHEL, Infosys and L&T are up over 2% each. Wipro and HUL are the two stocks that are trading in the red.

In the overall market, a total 14 stocks have clocked double-digit intraday returns. Among the 'A Group' stocks, IRB Infra and Oriental Bank have surged by 7% each. GMR Infra and Suzlon Energy are also up over 5%. Suzlon has reported that it has redeemed FCCBs worth USD 360 million. The company has used internal accruals, proceeds from the sale of assets and secured lenders' new facilities to repay the bonds.

The shares of Opto Circuits have gone down by 2.7%. Godrej Consumer Products is also lower by 1.5%.

Havells India, Indian Overseas Bank and State Bank of Travancore have surged after reporting their Jun 2012 quarter earnings. SpiceJet is also up following its quarterly results announcement.

The advance-decline ratio on the BSE indicates a positive sentiment.