Markets Edge Into Positives

The Indian markets have moved into the positive territory at noon after trading down in the first half of today’s session. As there has been no major news in the markets today, they could lean on either side. On the global front though, investors are eyeing the US Federal Reserve and European Central Bank (ECB) meet that will be held over today and tomorrow.

Among the sectoral indices, Realty, Healthcare, Capital Goods and Power are trading higher in the green zone, while Metals, Teck and IT are weaker at this point of time.

In Asia, Shanghai and Hang Seng are trading higher in the green zone, though Nikkei is still in negatives.

The European indices have opened in the green. The CAC, DAX and FTSE commenced trades on a good note and are currently up in the range of 0.3%-0.6%. Media reports state that the markets in the region are awaiting the outcome of the Fed's monetary meeting and are mulling the Chinese factory data which showed some weak spots.

Back home, Cipla has come down from its day’s high, but continues to be the leading gainer, trading 4.61% up at Rs 354.15. BHEL, SBI, HDFC and HUL are trading higher by over 1%. Other stocks like NTPC, Sun Pharma, ICICI Bank and ITC too are marginally positive.

Coal India continues to the worst index performer in today’s trade. The scrip is currently down 3.24% at Rs 347.65. Hero MotoCorp and ONCG are also down by over 1% each. Similarly, the Metals pack is witnessing lacklustre trade, with Tata Steel, Hindalco and Sterlite Industries lower in the range of 0.4%-0.7%.

Maruti Suzuki's stock is trading down by 0.98% at Rs 1122. The company recorded a 9.2% increase in sales for Jul 2012 at 82,234 units as against 75,300 units in the same month last year. Further, media reports state that at 71,024 units, the company’s domestic sales were up 6.8% during the month compared to 66,504 units in Jul last year.

Deccan Chronicle Holdings (DCHL) is currently trading at new low, 9.71% down at Rs 13.95. The stock has plunged by almost 50% in the past 9 trading sessions. Reports from Business Standard suggest that the Hyderabad-based financial services player, Karvy Group, has filed a police complaint against the promoters of DCHL, levelling allegations of forgery and misrepresentation, among others.

The market breadth though, is still strong. On the BSE, 1589 shares have declined, 947 have advanced and 126 shares are unchanged.

We expect the markets to remain in a narrow range, with no significant movement in either direction.