Apr 3, 2008

Indian Markets 3 April 2008- Markets continue to remain choppy

Markets continue to remain choppy

The markets opened on a positive note and traded in a range bound but choppy manner through the day to finally end with modest gains. While the Sensex was up 82.15 points or 0.52% at 15,832.55, the Nifty was up 17.40 points or 0.37% to close at 4771.60. The broadmarket indices underperformed the frontline indices as the BSE Midcap and Smallcap indices lost 0.40% and 0.91% respectively. Market breadth was negative, as A/D ratio was 0.9:1 on the BSE. NSE cash turnover was Rs.12,413.33crs. Vs. Rs.11,199.08 cr yesterday.

Sectorally, it was a mixed bag. The BSE IT, Oil & Gas and FMCG did well. The BSE Capital Goods and Power indices lost more than 2%. Gainers from the index pivotals included Satyam Comp, Wirpo, TCS, HUL and Infosys. Losers include BHEL, M&M, Rel Energy and Maruti Suzuki.

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.