Apr 3, 2008

Indian Markets 02 Apr 2008- Markets give up their morning gains

Markets give up their morning gains

The markets opened with an upward gap this morning on the back of strong global cues. However, they could not hold on to the gains and started to drift lower to finally close with modest gains. While the Sensex was up 123.78 points or 0.79% at 15,750.40, the Nifty was up 14.65 points or 0.31% to close at 4754.20. The BSE Midcap and Smallcap indices gained 0.28% and 0.64% respectively. The market breadth was healthy as A/D ratio was close to 2:1 on the BSE. NSE cash turnover was Rs.11,199.08 crs Vs. Rs.11,000.38 crs yesterday.

Sectorally, it was a mixed bag. While the BSE IT and Bankex surged in excess of 2%, the BSE Metal index lost more than 2%. Gainers from the index pivotals included HDFC, Infosys, ICICI Bank and Jaiprakash Associates. Losers were Rel Energy, Tata Steel, BHEL and ITC.

We continue with our view that the markets are likely to remain in a range in the coming weeks as they build a base after the recent sharp correction. The quarterly results that are to be announced in the next few weeks are likely to provide the trigger for the markets to break out of this range. We recommend a selective buying approach.