Metal index leads rally, Airtel biggest loser

Early Trend

•Market has moved in a very narrow range in the first hour of trade. BSE Sensex has moved in a range of 75 points and is currently trading at 19596.69, up 125 points over the previous day's close.

•Among the stocks that have done well are Hero Honda (up by 2.39%), Sterlite (+2.47%) are HDFC (+2.17%). Bharti Airtel is the major loser among the index stocks, down by around 1.16%, Bajaj Auto down 0.75% and M&M down 0.52%

•Metal index is leading the rally in the market, the index is up by 1.22%

Possibility of a rate hike has led to buying in the housing finance companies like HDFC.

[caption id="attachment_1541" align="alignleft" width="380" caption="Bombay Stock Exchange. AFP Photo"][/caption]

Broker Reports

BNP Paribas has down graded Tata Motors to 'Hold' on the rationale that the domestic and Jaguar LandRover businesses are on the verge of entering a low growth phase. The broking house on the other hand is extremely positive on Maruti, which is its top pick. Maruti is expected to benefit from growth in the auto car segment and its decline in margins is likely to be arrested in FY11 and can improve in FY12

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