All eyes on Railway Budget, Indian markets to be volatile

By Alex Mathews, Research head - Geojit BNP Paribas Financial Services

The markets had opened on a negative note tracking global markets but soon moved into green and remained in green for the rest of the day making volatile movement most of the day. No major movements were seen in the second part of the day with investors taking a cautious approach ahead of the Union budget.

Later in the day news came out that Maruti Suzuki India has recalled one lakh A-star cars to fix fuel leakage problems which lead to a 3.62% fall in the share price. IT and banking stocks rose while realty shares gained on expectations of favorable measures in the upcoming budget. Reliance Industries continued its downtrend today also after raising the offer price for the bankrupt petrochemical giant.

In the European front the markets rose with miners and bankers gaining while the Asian markets remained mixed with Australian stocks hit by the poor corporate earnings. Being the last day of the REC FPO, it was subscribed 2.23 times. In the second part of the day, the US index futures reversed early losses and helped our markets to remain in green and our markets close for the day with Sensex up 0.3% and Nifty up 0.28%.

On the sectoral front, Realty, Metal, Healthcare and IT gained while Auto, Consumer Durable, Oil and PSU lost ground. Stock specifically, ATUL, AQUA, Pochiraju, Ashco, Ranbaxy, ICICI Bank, Sterlite etc made gains while Maruti, BPCL, Cairn and Reliance Infra lost.

Tomorrow we are going to see the railway budget being presented and the Union budget by Friday. The markets are expected to remain volatile till the Union budget. Nifty is having major support at 4833 and 4793 while the resistance is there at 4931 and 4950 levels.

Source : Equity Bulls

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