Trades Remain In Narrow Range

The Indian markets are continuing to trade on a flat positive note this afternoon. The Sensex and Nifty are currently trading higher by 0.15% and 0.16% respectively. Some of the sectors have turned negative. Those still in the positive include Metals, Auto, PSU, FMCG and IT, up by 1.45%, 1.03%, 0.46%, 0.38% and 0.26% respectively. The other indices are trading lower in the range of 0.04%-1%.

In the Asian markets, Nikkei and Shanghai are still trading positive, notching up gains of 0.88% and 0.22% respectively. Hang Seng, though, is down by 0.33%. Investors seem to be optimistic on the plans of the ECB, which is yet to announce stimulus measures. They are also waiting for the Jul 2012 data, including the industrial production, retail sales and inflation figures to come in on Thursday, Aug 9, as these figures will determine the requirement of stimulus measures.

The European indices, however, opened on a subdued note, and are currently trading marginally down. The major indices, CAC, DAX and FTSE, are lower in the range of 0.06%-0.40%. After a decent rally seen recently, investors are now looking to book profits. Sentiments also seem to be cautious before the ECB announces any economic stimulus measures.

Back home, the Metal and Auto indices are witnessing a good trading session. NMDC, Tata Steel and Sterlite Industries are up by 1.42%, 0.85% and 1.45% respectively. Other gainers in Auto are Cummins India, M&M, Tata Motors, each trading higher by over 1%.

Among the losers pack, Bharti Airtel continues to trade lower by 2% after it reported disappointing results for the Jun quarter. Other index heavyweights like GAIL India, ONGC and TCS have lost nearly 1.5% each.

All the Indiabulls group companies stocks are currently trading lower in the range of 2-3%. This was after Canada-based research firm Veritas released its report which raised various corporate governance issues in the company and has advised investors to sell all Indiabulls group stocks.

The market breadth continues to remain negative. On the BSE, 1328 shares have declined, 1227 shares have advanced, and 120 shares are unchanged.