Markets trading marginally positive

Markets are trading marginally higher amidst volatility at upward levels. Sensex and Nifty are hovering around 16,100 mark and 4,850 levels, respectively.

At 1130, the Sensex was up 64 points at 16,102 and the Nifty gained 18 points to 4,849.

On the global front, Asian markets are trading mixed. Nikkei and Strait Times have gained by nearly 1% each. However, Shanghai Composite has fallen by over 1%. Asian stocks rose in early trades after successful European bond auctions and comments from the European Central Bank (ECB) helped alleviate some of the worst concerns about the euro-zone's debt woes.

Back home, Capital Goods major L&T and BHEL have gained between 1-2% after November capital goods output improved significantly to -4.6% from October's degrowth of 25.7%.

Interest rate sensitive Realty pack has extended their gains for fourth straight day on expectations that the RBI will start cutting interest rates in the coming months to support the slowing economy. DLF has zoomed by nearly 3%.

From the metal pack, Coal India, Tata Steel, Jindal Steel and Sterlite have surged between 0.3-3%. Metal stocks extended the gains as prices of many commodities rose in New York yesterday. Coal India has gained 3% after the news that the company has agreed to 25% wage hike and the final decision on wage hike will be taken on January 27-28.

Among Power sector, Tata Power is the top Sensex gainer, up by 3%. NTPC has gained by nearly 1%.

In the Auto space, Tata Motors has gained by nearly 2%. Maruti Suzuki has increased by over 1%. However, two wheeler companies have extended their losses on concerns of increased competition with global peers. Bajaj Auto and Hero MotoCorp have declined by nearly 1% each.

From the IT space, Infosys has fallen by nearly 1% after the company cut its FY12 dollar revenues guidance. IT stocks have extended yesterday’s weakness post poor guidance from Infosys. Infy’s Q3 net profit surged 24.5% to Rs 2,372 cr quarter-on-quarter - better than analysts' expectations. But the company cut its FY12 dollar revenue guidance to 16.4% as against earlier guidance of 17.1-19.1%. Infosys's lower revenue guidance also weighed on other software majors. TCS has lost nearly 1.5%.

From the banking space, SBI and ICICI Bank are up by nearly 1% on hopes that the RBI may announce a cut in the CRR. However, HDFC has slipped nearly 1%.

The broader indices continue to outperform the benchmark indices. BSE Midcap and Smallcap indices have gained by nearly 1% each.

Diamond Power Infrastructure has surged 7% to Rs 113 after the company said it has received order worth of Rs 48.30 crore for supply of 108 power transformers from various customers.

IRB Infrastructure has gained 6% at Rs 144.25, rebounding nearly 14% from yesterday’s intra-day low of Rs 127, after the company clarified on a news item appearing in a leading financial daily titled "Goldman says IRB masked aircraft buy".

Suzlon Energy has gained 4% after the company said its subsidiary, REpower Systems SE, won a contract to supply 10 wind turbines to Bradwell wind farm in the UK.

Shares of sugar companies have extended their rally for the second straight day on Friday on expectation that the government may allow additional sugar exports of one million tonnes during the current marketing year.

Shree Renuka Sugars, Bajaj Hindustan, Balarampur Chini Mills, Dwarikesh Sugar, Triveni Engineering, Sakthi Sugars, Thiru Aroon Sugars and Uttam Sugar have rallied between 3-20% on the Bombay Stock Exchange (BSE).

The market breadth in BSE remains healthy with 1,656 shares advancing and 662 shares declining.