Markets directionless on derivatives expiry

Markets continue to remain muted with no fresh cues as investors are trading to the sidelines on futures and options expiry day, the Nifty has risen 6 points to 6019, and the Sensex has surged 31 points to 20,026. Nifty Novembr futures are trading at 32 points premium at 6015. 

Retail investors have been net sellers in this rally and are expected to come back after markets correct. T P Raman, Managing Director, Sundaram Mutual said, "retail investors have exited given the rising market  and are expected to come back after they correct."

Although investors are dumping selective stocks, T P Raman believes that the Indian growth story is intact. "Given the deluge of liquidity, the markets will continue to do well with intermittent corrections." Sundaram Mutual is investing in infrastructure, energy, rural and consumer goods sectors.

Analsyst community sees earnings season meeting expectations but investors are continously rewarding stocks which are posting good results and punishing shares whose net has fallen more than expected.

Cummins India surged 5.1% on better-than-expected results (net surged 91%), while United Spirits dipped 5.3% as the beer baron reported single digit growth in the second quarter.

Metal stocks are leading the losses, SAIL has fallen 3.8%, followed by Hindalco, down 1.1% and Sterlite and Sesa Goa, down 0.8% each.

Top Sensex losers are, DLF, down 0.9%, BHEL down 1% and NTPC, down 0.9%: Bharti Airetel, up 2.8%, Maruti Suzuki, up 1.3% and ONGC, up 1.2%.