Markets Choppy, United Spirits Up 10%

The markets have remained volatile in this afternoon as the next level trigger is missing in the markets. The weak concerns on the global fundamentals have currently put pressure on the markets. Besides, this week has started on a silent period after lot of action in the domestic and international markets in last two weeks. Markets are also waiting governments next move in which is it is expected to announce FDI in Insurance and Health care. Debt restructuring in the power sector is also a key event to watch.

Asian markets at this moment are mostly volatile. European markets have shown a negative opening.

On the indices front, the power index which was a top gainer in the morning, has held the gains but lost the position as Realty index has surged by 3.77%, ahead of the gains posted by Power index. Capital goods index has also trading strongly with 2.18% gains. Metal and Bankex are up over 1%. FMCG index on the other hand has lost 1.6% and is the top loser.

Among the Sensex stocks, BHEL has strongly maintained the gaining streak and is the top gainer with 6% gains. Investors are also seeing buying opportunity in Jindal Steel; after the stock was beaten down heavily recently due to the CAG report on coal block allocations. Other metal companies like Sterlite, Hindalco industries, Tata Steel etc are also trading up in gains. Private power utility, Tata Power has also surged over 3%. M&M is also maintaining the morning gains. HUL and ITC, the FMCG majors are beaten down today and both are down over 2%.

Among the other stocks, GVK Power & Infrastructure has surged by 6% as it will benefit from the proposed 660% tariff hike by Mumbai Airport. United Spirits has also surged by 10% over the news that Diageo Plc is in talks to buy stake in the company.

Power stocks have maintained the gains with Adani Power, Lanco infra, JSW Energy, Torrent power all showing handsome gains. Pharma stocks such as Ranbaxy, DRL, Cadila, Cipla etc are currently trading in red zone.

Shares of IVRCL have surged by 5% after it reported that it has won orders worth Rs 959.04 Crore. Reliance MediaWorks has also surged by 7% after it said that it has jointly Submit a winning Bid to Acquire Assets of Digital Domain and Mothership in Digital Domain Media Group Bankruptcy Auction. The company has also said that it has divested 100% stake of its Malaysia exhibition circuit to Navis.

The advance decline ratio on BSE is still positive with total 58% advances and 37% declines.

Ahead today, we expect the market to remain volatile with positive bias.