Metals Stocks Take Markets Higher

The Indian markets, which opened their initial trades on a flat note, have finally gained some momentum and are trading higher. At present, the major indices Sensex and Nifty are trading higher by 0.26% and 0.21% respectively.

Among the sectoral indices, Metals and Pharma have helped the markets to move northwards. Both the indices are up by over 1% as of now. The other indices witnessing gains are CD, Auto, PSU and CG. Power and Bankex are the worst performers, down by 0.20% each. IT and FMCG are also trading with marginal losses.

The other Asian markets have continued to trade on a mixed note. The Hang Seng and Shanghai are up by 0.14% and 0.17, while Nikkei is still down by 0.03%.

The European markets have opened on a flat negative note, today trimming the previous session's gains as investors went into consolidation mode. The investors are now awaiting catalysts like the potential stimulus from the US and a German constitutional ruling on the European Stability Mechanism. Market participants are also speculating about some kind of positive move from the Fed in its upcoming FOMC meeting in the US.

Back home, Metals stocks like Tata Steel and NMDC are trading higher by 2.18% and 2.48% respectively. SAIL, Hindalco and Coal India are each in gains of nearly 1.5%. Pharma stock Wochhardt is trading higher by 4.50% at Rs 1415.

Among individual stocks JSW Steel rose 1.28% to Rs 688 on the BSE. The stock rallied for the 3rd day after the company reported higher crude steel production for Aug 2012. The crude steel production was up by 15% and the utilisation levels increased to 85% from 80% in Jul 2012.

The market breadth is strong as of now. On the BSE, 1434 shares have advanced, 1130 shares have declined and 119 shares are unchanged.