Nifty Nearing 5800

The Indian markets are trading smartly higher in the green zone, ahead of some big ticket reforms that could be announced today. The Cabinet meeting is scheduled post market hours around 4.30 pm today. However, the market participants are anticipating that the government would go ahead with pending reforms in a big way, helping the economy to get back on track. Both the Sensex and Nifty are currently trading higher by almost 1%, with the Sensex having breached the 19k mark while the Nifty has almost touched the 5800 levels.

Among the sectoral indices, Realty is the leading index trading higher by almost 4%. Other indices like Bankex, Power, Capital Goods, etc. are also trading higher more than 1%. While on the other hand only two indices, Healthcare and IT, are trading lower by 0.21% and 0.39% respectively.

Other Asian markets are also trading in green zone, with Hang Seng and Nikkei is trading marginally higher by 0.12% and 0.88% respectively. This is after media reports which said that Asian markets went mostly higher in volatile trades today, with the Japanese car makers standing out as the Yen weakened, to counter the losses for energy firms. Shanghai market continues to remain close on account of public holiday.

The European indices have opened their initial trades in the positive territory. The FTSE, CAC and DAX are all trading higher in the range of 0.3%-0.6%. This is after media reports which gave some cues that investors awaited a policy meeting by the Euro zone’s central bank, amid speculations on the timing of a Spanish bailout. US index futures and Asian shares remained little changed.

Back home, BHEL is the leading index gainer, up by 5.67% to Rs 263.80 per share. Private banking majors ICICI Bank and HDFC Bank are also trading higher by 3.39% and 2.06% respectively. Bharti Airtel, HDFC, Tata Steel, ONGC and SBI have seen gains in the range of 1%-2%. Stocks like HUL, Wipro, Tata Power, etc. are trading marginally in the green zone.

On the other hand, Cipla is the leading index loser, trading lower by 1.06% at Rs 377.05 per share. Two-wheeler majors Hero MotoCorp and Bajaj Auto are also down by 0.82% and 0.24% respectively. M&M, Coal India, TCS, Infosys and Sun Pharma are some of the stocks which are trading in the negative territory.

The market breadth, which indicates the overall health of the market, is strong at the moment. On the BSE, 1699 shares advanced, 970 shares have declined and 140 shares are unchanged.

We expect the markets to remain positive for the remaining part of the day.