Trades Remain Firm, July IIP Grows At 0.1%

The Indian markets are trading on a firm, positive note. The Sensex and Nifty are trading higher by 0.51% and 0.45% respectively.

The IIP figure for Jul 2010 has shown marginal grown at 0.1% compared to negative 1.8% in the month-ago period. Muted growth in the manufacturing, mining and capital goods sectors added to the woes. However investors have weighed down the lower-than-expected IIP data over concerns on the upcoming key global events.

Among the sectoral indices, IT and Tech, up by 0.99% and 0.76% as of now, have helped the markets move northwards. The other indices that have witnessed gains are Auto, CD, Bankex, CG, FMCG and Metals. Power, Pharma and Oil & Gas are the worst performers, trading lower in the range of 0.03%-1.01%.

The other Asian markets are currently trading positive. The Hang Seng, Nikkei and Shanghai are up by 1.70, 1.08 and 0.45% respectively.

The European markets have opened on a flat note today. Investors are quite optimistic over the German Constitutional court ruling on the Euro zone bailout fund that most expect to be broadly positive. However, there are some worries that the court could attach some conditions to the approval. Further, investors are also eying the US Fed, which begins its two-day policy meeting today. The markets widely expect some type of new monetary stimulus to boost the US economy.

Back home, IT stocks are providing some support to the markets. At present, Tech Mahindra is trading higher with gains of 3.36%. The other major IT companies, TCS, Wipro and Infosys are also up by 1.72%, 1.40% and 0.31% respectively.

Among individual stocks, Punjab Chemical has gained 7.94% and is trading at Rs 82. This is on news that the company's board will consider a preferential issue, pursuant to a scheme of corporate debt restructuring (CDR).

The market breadth remains positive. On the BSE, 1364 shares have advanced, 1277 shares have declined and 128 shares are unchanged.