Markets open strong on positive cues
The Indian markets opened on a strong positive note today on the back of positive cues coming in from the Asian market. For the previous two days, the markets remained quiet and traded flat on back of various global events. Moody’s downgrade of ratings of six more European countries also hurt investor sentiments. However, China coming to the aid of the debt crisis of the European countries today boosted sentiments across the globe. Both the Sensex and Nifty are trading up with 1.26% and 1.28% gains respectively.
Other Asian markets are trading on a positive note today on the back of news that China will help the European countries to resolve the crisis. This brought some ray of hope among investors with regard to the debt-strangled European nations.
The European markets too closed on a negative note yesterday as the European leaders called off the meeting on the austerity plan with Greece.
Benchmark Indices |
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Index | Rate | % Change |
Hang Seng | 21,330.65 | 1.94 |
Nikkei | 9288.61 | 2.55 |
Shanghai | 2,364.92 | 0.85 |
Sensex | 18,072.79 | 1.26 |
Nifty | 5,485.60 | 1.28 |
Back home, among the BSE sectoral indices, all the indices barring Oil & Gas are trading up with gains between 0.25%-3.50%. Auto, Realty and CG are leading with gains of 3.5%, 2.79% and 2.30% respectively. Oil & Gas is marginally down by 0.07%.
Of the Sensex shares, Tata Motors is leading with gains of 6.38% after reporting a strong Dec quarter mainly on account of JLR sales. Others like Bajaj Auto, Bharti Airtel, DLF, Hindalco, ICICI Bank, L&T, M&M, Maruti Suzuki and Sterlite are trading with gains between 2%-4%. Among the losers pack, HUL and RIL are down by 0.65% and 0.73% respectively.
The market breadth, which indicates the overall health of the market, is positive. On the BSE, 1699 shares rose and 634 shares fell. 88 shares remained unchanged.
We expect the markets to remain positive for the day. We also expect the European markets to provide some vital cues on the desired direction of the market trend in the late afternoon session.