Indices Turn Positive As China Pumps Liquidity

The Indian markets have shown some recovery after a subdued opening in the morning. The 30-share Sensex is higher by 0.3% and Nifty is up 0.26%.

The Asian markets are looking in much better shape at this time and have all turned into the green. The Japanese Nikkei closed with 0.5% gains, Shanghai was up by 2.5% and Hang Seng was up 1%. The indices showed a smart recovery over reports that the Chinese banks have injected record liquidity (365 billion yuan) into the banking system.

The European markets have also seen a positive opening despite negative news flows in the region. The protests in Greece and Spain’s decision to defer the bailout package yesterday dragged the world markets.

In the Indian markets, the FMCG index is supporting the market with 1% gains. CD index is also up by nearly 1%. CG, Auto and Power stocks are have each gained over 0.5%. IT and Oil & Gas are the only indices trading in the red at this moment.

Among the Sensex stocks, Tata Power has surged by 6%. L&T is also on the buyers' list. Auto stocks M&M, Tata Motors, Hero, Maruti Suzuki and Bajaj Auto are being seen as buying opportunities. Metals and Mining stocks Jindal Steel, Tata Steel and Hindalco are in gains. Banking shares SBI, HDFC and ICICI Bank are also in the green. On the other hand, BHEL, ONGC, Coal India, NTPC, Wipro, Infosys, RIL, Sterlite and HDFC Bank have all lost investor interest at this time.

Most power stocks are in green at the moment. The shares of UMPP holder Tata Power have jumped as the central electricity authority has taken up their case of tariff revision today. Reliance Power and Adani Power would keenly watch the hearings as these two firms are also interested parties in getting the upwardly directed tariffs in their projects based on imported coal.

United Spirits, RCF, Gujarat Gas are upbeat with over 5% gains each.

The market has shown good gains ahead of the series expiry, indicating that the global negatives will remain a little sideways due to the newly announced reforms as well as abundant liquidity.