Volatile markets trade near day's high

Volatile markets have extended gains and is at the day's high at this moment.

The Sensex after a firm start on global cues dropped ino the red. However, it regained strength and is now up 125 points at 19,582.

The Nifty is at 5,890 - up 24 points.

"The markets could drift down if shocks such as fear of default by some of the PIIGS nations, monetary policy action by China, the 2G row and expected default by micro finance institutions continue. I do see some room for a downside from current levels, but this should be looked at as a buying opportunity," says Aneesh Srivastava, CIO, IDBI Federal Life Insurance.

Globally markets are strong. The Hang Seng has added 1% to 23,260. Shanghai Composite is up 1% at 2,886. However, Seoul COmposite is flat at 1,930 as hostilities between South and North Korea continue.

Markets in US gained overnight on positive data of employment. The Dow jumped 1.3% to 11,187. Nasdaq surged 2% to 2,543 while S&P 500 added 1.5% to 1,198, ahead of the biggest shopping day of the year.

Markets back home have recovered some of the losses it made on Wednesday following the real-estate loan scam. CBI raids in the bribes-for-loans scam took the markets lower.Officers of top management and middle management of various public sector banks and financial institutions viz. Bank of India, Central Bank of India, Punjab National Bank, LIC and LIC Housing Finance were receiving illegal gratifications from the private financial services company who were acting as mediators and facilitators for corporate loans and other facilities from financial institutions, the CBI said. Arrests were made of specific people after market hours on Wednesday.

Among the scam hit stocks, Money Matters has dropped to its 20% lower circuit of Rs 425 - tocuhing its lowest in 52 weeks. LIC Housing Finance has rebounded in trades. The stock, which had slumped 9% in opening trades in now flat at Rs 1,070.

Punjab National Bank has dropped 2.6% to Rs 1,232.

BSE realty index continues to be 2.7% lower at 2,957. Index losers include D B Realty, Orbit Corporation, Anant Raj Industries and HDIL. Among Sensex stocks DLF and Jaipraaksh Associates have dropped in trades.

PSU, FMCG and power indices are also in red.

Meanwhile, HDFC, HDFC Bank, ICICI Bank and TCS have managed to gain in trades. Tata Motors, Wipro and Infosys have also added over 1% each.

Powergrid Corporation is trading down 2% after the FPOs got listed. Over 49 million shares of Powergrid have changed hands on the NSE so far.