Sensex Trading Flat, Positive

As expected in our morning market update, the Indian markets continued to trade in the positives. At present, both the major indices are marginally up by 0.30%. The positive opening in the Asian markets and high optimism over additional aid from the European region continues to fuel hope.

Most of the sectors are trading in gains at the moment. The major gainers, Metals and Auto, are trading with 1.70% and 1.06% gains respectively, while the others are also up in the range of 0.25%-0.71%. On the other hand, Realty, FMCG and Teck have lost nearly 0.20% each.

The other Asian markets are currently trading on a mixed note. The Nikkei is up by 1.42%, while Hang Seng and Shanghai are marginally lowr by 0.09% and 0.10% respectively. The markets are taking cues from the global developments, especially from the US markets, which closed on a positive note yesterday.

Back home, metal and mining companies are witnessing some positive momentum. Jindal Steel and Hindalco are trading higher by over 2.5%, while others like JSW Steel, NMDC, SAIL, Sesa Goa and Tata Steel are up by over 1% each. The Auto pack continues to remain on a high for the third consecutive day, and M&M and Tata Motors are up by 1.27% and 1.09% respectively.

Among the Sensex stocks, Bharti Airtel is leading the losers pack, currently down by 3.61% to Rs 283 after the company reported a disappointing set of Jun 2012 quarter results.

VIP Industries is trading 2.5% up at Rs 78 after a good report card for the Jun quarter. Tulip Telecom too surged by 3% as the company tied up Rs 400 crore for FCCB repayment.

As mentioned in the 'Stock in Action' section on our website, Dr Reddy is trading with 0.5% gains today. This was post the company’s announcement that it has launched Montelukast Sodium tablets in the US market. The brand has American sales of about USD 4.7 billion, as per the record of 12 months ended March 31, 2012 revealed by IMS Health. We expect a jump in the shares of the company.

The market breadth, which indicates the overall health of the market, is positive at the moment. On the BSE, 1296 shares have advanced, 646 shares have declined and 97 shares are unchanged.