Markets Open Positive, Apollo Hospital Down 9%

As per our expectations, the markets have opened on a positive note. The Sensex is up 178 points and Nifty has gained 48 points.

Overnight, the US markets surged about 0.8% on the positive comments of President Obama that the government would most probably reach a deal to avoid the fiscal cliff.

The Asian markets are also trading in gains at the moment. The Hang Seng and Shanghai have surged 1% each, while Nikkei is also up 0.75%.

Of the sectoral indices, Realty is up 2.11% on the fresh remarks of the RBI, which may lead to a softening of the residential property prices in the country. Other interest-rate sensitive indices like Auto and Bankex are also trading with over 1% gains. IT is the only index trading in negatives.

In individual stocks, Tata Motors is the top gainer, up 3.9%. Bajaj Auto has gained 2.8% at this time. Cipla (2.7%), HDFC (2.1%) and Dr. Reddy's Laboratories (2.09%) are also trading higher. Most of the other stocks in the index have gone up too, indicating a strongly positive sentiment. Infosys (1%), Maruti Suzuki (0.9%), BHEL (0.7%) and Sterlite (0.1%) are the only losers.

Among others, Apollo Hospital has tanked 9% on news that Hong Kong-based brokerage firm CLSA Capital Partners will sell all its stake in the company. Suzlon Energy, on the other hand, has gained 5.5% on news of the debt restructuring. J&K Bank has surged by a further 5% today. CESC, which had tanked after its acquisition of FirstSource Solutions, has gained 4.4%.

In last two trading sessions, the markets have surged over 2.5% and most counters have remained very bullish. The shares of Bajaj Auto have surged to a new peak over this positive sentiment. Other stocks such as Gitanjali Gems, Bajaj Corp, Atul Auto, Colgate Palmolive, etc. have also touched new highs.

The market breadth is very positive at this moment, with a total 63% advances.

With the derivative series expiry, we expect the markets to remain volatile with a positive bias.