Markets Build On Morning Gains

The Indian markets have maintained their morning gains. Globally too, all the markets are trading with strong gains on the back of higher-than-expected payrolls in the US and rising optimism from the ECB, which is expected to take strong measures on the debt crisis. This has lifted the market's sentiments.

Currently, the market are holding their morning gains, with the Sensex and Nifty higher by 1.31% and 1.34% respectively. The sectoral indices have all remained positive. Oil & Gas is leading by 2.78%, taking the markets higher. The other indices like Bankex, Capital Goods, Realty, Auto and Metals are also trading in gains of over 1.5% each.

In Asia, the Hang Seng, Nikkei and Shanghai continued to trade positive, notching up gains of 1.74%, 1.96% and 1.18% respectively.

The European indices, however, have opened on subdued note today with some losses. Major indices like the CAC, DAX and FTSE are trading marginally lower in the range of 0.16%-0.3%. After a strong rally on Friday, Aug 3, investors are now looking to book their profits. The markets are now waiting for further signals from the ECB on how soon it will act to stimulate economic growth and ease the crisis in the region.

Back home, as already stated, the Oil & Gas pack is witnessing a good trading session. Index heavyweight Reliance Industries has currently made over 5% gains and stands at Rs 781.50. This rally is on reports that the benchmark Singapore gross refining margins have strengthened from the second week of Jul 2012 to average at $8 a barrel, up from $6.7 a barrel in the quarter ended Jun 2012. Other stocks like Gujarat State Petronet and GAIL India are also higher by 4.34% and 2.45% respectively.

Banking stocks such as HDFC, HDFC Bank, ICICI Bank and SBI are trading higher by over 1% each.

Strides Arcolab is trading higher by 1.38% at Rs 756 after the company stated in the media that it has entered into an in-licensing agreement with Gilead Sciences Inc. to promote access to generic versions of Gilead's HIV medicine in the developing countries.

The market breadth, which indicates the overall health of the market, remains positive. On the BSE, 1619 shares have advanced, 956 shares declined and 131 shares are unchanged.

We expect the markets to maintain their positive bias.