Markets Witnessing Flat Trades

The Indian markets opened the first trades of the day lower and are now trading almost flat, though in the negative territory. The frontline indices Sensex and Nifty trading lower by 0.04% and 0.06% respectively. The market participants are awaiting the RBI's monetary policy review meet which is scheduled tomorrow.

Auto is the leading index trading higher by 1.09%. On the other hand, FMCG, IT, Teck and Consumer Durables have dropped more than 0.40%. Metals, Healthcare and Realty are also among those that are in the green zone.

In the other Asian markets, Hang Seng are trading lower by 0.37% and Shanghai is up 0.51%. The Nikkei is trading higher by 1.52% at 9886. According to Bloomberg reports, Japanese shares gained, with the Nikkei 225 Stock Average rising to its highest in eight months, as the Yen fell after the Liberal Democratic Party regained power. Tokyo Electric Power Co. led gains on expectations that the new government will restart the nuclear reactors.

Back home, Bharti Airtel continues to be among the worst performing stocks, currently trading lower by 2.44% at Rs 304.35 per share. IT stocks like TCS and Wipro are down 1.61% and 1.37% respectively. FMCG heavyweights ITC and HUL have also lost 0.93% and 0.21% respectively. HDFC, BHEL, GAIL India and Coal India are trading marginally in the red zone.

Hindalco is the leading index gainer this morning, up 2.63% at Rs 123.15 per share. Auto stocks are also trading higher, with names like Maruti Suzuki, M&M, Bajaj Auto and Tata Motors are also up in the range of 0.84%-1.87% respectively. Cipla, ICICI Bank, Jindal Steel, SBI and NTPC are among the stocks that are trading higher in the positive territory.

The market breadth, which indicates the overall health of the market, is strong. On the BSE, 1324 shares have advanced, 854 shares have declined and 112 shares are unchanged.

We expect the markets to remain volatile for the day, with a negative bias.