Markets See Partial Recovery

The Indian equity markets have shown some recovery in the afternoon trades but still seem to be volatile. The BSE Sensex is currently trading with gains of 0.22% at 18715 and Nifty is trading with 0.09% gains at 5674.

Deutsche Bank has said in its report that the lower oil prices and rupee appreciation will reduce the fiscal deficit. It has also said that the Sensex may touch 20000 by December this year.

Among the Asian indices, Nikkei closed with 0.24% gains and Hang Seng also turned positive. Shanghai, though, was still trading in the red.

The European stocks have opened with a mixed trend. FTSE has seen gains of 0.2% so far, and CAC and DAX are witnessing flat trades. Certain issues like the Greek budget deficit and Spain’s reluctance to ask for financial aid will keep the Europeans stocks volatile today.

Back to domestic markets, the FMCG index is back in form, currently up by 1.3%. The index was seen in a losing streak in last few trading sessions. Besides, Healthcare stocks are also positive today. Both the defensive sectors are back in demand as the world is being cautious over fundamentals. Metals, Auto and PSUs however, are seen trading in the red.

Of the Sensex stocks, Cipla remains the top gainer, up by nearly 2%. HDFC has held its ground, while TCS has also maintained its morning gains. Similarly, NTPC, Tata Power, BHEL and L&T have remained in the green zone. Jindal Steel, on the other hand, has widened its losses and the stock is down 4.3%. Tata Steel, Sterlite, ONGC, Coal India, Hero MotoCorp, Maruti Suzuki, etc. are trading in negatives.

The power stocks have also remained positive, but their gains have been trimmed. Earlier today, the Power minister said that the collective losses accumulated by the state electricity boards are to the tune of Rs 2.46 lakh crore, which is higher than earlier estimate of Rs 1.9 lakh crore.

Among other stocks, Ruchi Soya has gained 4%. United Spirits has gained 2% on news that UK-based Diageo LLC has bought a stake in the company. Most of other stocks have also held their gains.

On the BSE, the advance-decline ratio is reflecting an improving sentiment.