Benchmarks continue to oscillate in tight range; Sensex trades above 25200 level

Benchmarks continue to trade in tight range in absence of any trigger which could provide a direction to local equity markets. Besides, lack of positive global cues offered no support to Indian equity markets. Additionally, investors preferred being on the sidelines on account of Iraq turmoil after US President Barack Obama said on Thursday he was sending up to 300 U.S. military advisers to Iraq. Trading flat with positive bias, both Sensex and Nifty were trading above the crucial 25,200 and 7500 levels respectively. Meanwhile broader indices, in absence of buying interest, were just about managing to hold the head above water.

On the global front, Asian stocks fell from a six-year high, paring the longest run of weekly gains since August for the regional benchmark index, as materials and technology companies dropped. Meanwhile, European shares were trading negative ahead of report that may show euro-area consumer confidence rose to the highest level since 2007.

Closer home, gains in stocks from Consumer Durables, Oil & Gas and Metal counters were counterbalanced by losses in stocks from Healthcare, Capital Goods and Auto counters. In non sectoral gauge activity, sugar stocks gained on renewed buying. The overall market breadth on BSE is in the favour of declines which thumped advances in the ratio of 1329:1269; while 115 shares remained unchanged.

The BSE Sensex is currently trading at 25215.30, up by 13.51 points or 0.05% after trading in a range of 25141 and 25276.3. There were 16 stocks advancing against 14 stocks declining on the index.   

The broader indices were trading in green; the BSE Mid cap index was up by 0.30%, while Small cap index up by 0.01%.   

The gaining sectoral indices on the BSE were Consumer Durables up by 2.22%, Oil & Gas up by 0.51%, Metal up by 0.46%, Bankex up by 0.38% and India Infrastructure Index up by 0.26%. While, Healthcare down by 0.51%, Capital Goods down by 0.49%, Auto down by 0.27%, Realty down by 0.14% and IT down by 0.1%  were the losing indices on BSE.   

The top gainers on the Sensex were Axis Bank up by 1.71%, Tata Steel up by 1.33%, Bajaj Auto up by 0.92%, Cipla up by 0.85% and ONGC up by 0.84%. On the flip side, Sun Pharma down by 1.84%, Tata Power down by 1.68%, Mahindra & Mahindra down by 0.74%, L&T down by 0.62% and Tata Motors down by 0.58% were the top losers.

Meanwhile, Coal and Power Minister Piyush Goyal has expressed the need to increase the domestic coal production by sorting out environmental issues in order to meet the rising demand. Power Minister has stated that lack of favorable policies over the past couple of years has impacted the domestic coal production and it has become imperative to take measure soon to improve the situation.

Piyush Goyal also stated that presently coal ministry is in conversation with environment ministry and both ministries are planning to take measures soon to resolve environment concerns, impacting coal mining in the country. By adding further, Coal and Power Minister stated that to enhance coal production, ministry is also looking at other ways such enhancing morale of coal India employees through giving more incentive. Minister also ensures that there would be an improvement in coal quality in coming future.

India is world's fifth largest in terms of reserves and the third-largest producer of coal. Over the past few years, India domestic production has failed to keep pace with increasing domestic demand. Indian domestic coal demand is around 35 percent higher than domestic supply, resulting into a high deficit of which a huge part is being met by costly imports from Indonesia, South Africa and Australia. Acute coal shortages in the country have become primary reason for power deficit as coal-fired plants account for 68% of India's installed electricity capacity. Presently, Coal India (CIL) is the only producer of domestic coal accounting for around 80 percent of the domestic production. Meanwhile, in order to meet India’s growing coal demand, the government has planned to allot coal mines directly to private players under public-private partnership (PPP) mode, which would also end the monopoly of public sector unit Coal India.

The CNX Nifty is currently trading at 7544.1, up by 3.40 points or 0.05% after trading in a range of 7520.1 and 7560.55. There were 26 stocks advancing against 24 stocks declining on the index.   

The top gainers on Nifty were Mcdowell-N up by 2.99%, Axis Bank up by 1.85%, Kotak Bank up by 1.7%, Tata Steel up by 1.51% and Cairn India up by 1.39%. On the flip side, Sun Pharma down by 2.14%, Tata Power down by 1.54%, BPCL down by 1.46%, HCL Technlogies down by 1.41% and M&M down by 0.98% were the top losers.

Most of Asian equity indices were trading in red; Straits Times down by 0.23%, Nikkei 225 down by 0.08%, Taiwan Weighted down by 0.46%, Jakarta Stock Index down by 0.18%. On the flip side, Shanghai Composite up by 0.08% and Hang Seng up by 0.25%.

European markets got off to a negative start; with DAX losing 0.03%, CAC 40 declining 0.14% and FTSE 100 losing 0.13%