Markets Directionless, Are Where They Were

It has been a rather directionless day so far for the markets today. They have been trading in a very narrow range on either side around where they opened. It looks like a very weak trading day. Broader markets are rather indecisive and flat. However, mid and small caps have seen stronger moves; the BSE Mid Cap Index trading up 0.23 per cent while the Small Cap Index is up 0.30 per cent so far. 

The Indian market is to some extent also reflecting on the dull global cues. Asian markets have opened flat to negative today. The Hang Seng, Nikkei and the Shanghai Composite are trading 0.68 per cent, 0.08 per cent and -0.65 per cent from their preceding days close. The US markets recouped early losses to the end the session higher on Monday and markets in Asia are trying to take some direction from that. Also the third debate between Obama and Romney, which had made references to China, led to a lower level in Chinese equities. However, Japanese stocks were trading higher as the yen dropped to multi-month lows against the dollar and the euro. The Bank of Japan is to possibly take fresh action on the easing front on October 30, 2012, bringing in some positivity in the markets.

On the domestic front, 5 of the 13 sectoral indices are trading positive. The highest gains are seen in Capital Goods, Healthcare and Realty which are up by 1.22 per cent, 0.58 per cent and 0.32 per cent respectively. Major movers in these indices are AIA Engineering, Wockhardt, Strides Arcolab and Phoenix Mills which have moved up by 4.43 per cent, 3.64 per cent, 2.64 per cent and 2.77 per cent respectively.

Among top losers is Hero Motocorp which is seen trading lower by 1.76 per cent. This has been due to non impressive results for Q2FY13 by the company. Sales volumes have seen a drastic decline on a year-on-year basis in every month of Q2FY13 and consequently there were expectations of a dull show for the quarter under review. Moreover, a downward trend in demand from rural India and increasing competition has been further weighing down the stock.