Domestic bourses trade range-bound; Nifty remains below 4,700 mark

The key domestic benchmarks are trading in the tight band with a cut of over half a percentage point tracking unsupportive global cues as players cut their positions heading into the year-end with an Italian debt auction later in the day keeping markets nervous. Back home, the Nifty continues to be below the 4700-mark, weighed down by banks, oil and gas, capital goods and power stocks. Index heavyweight Reliance Industries too added some pressure on the market, with over a percent loss. Moreover, the weakness in the rupee is also the reason for the weakness in the market. The rupee tank again above 53.30 is little discomforting. Rupee depreciated by 44 paise to 53.41 a dollar. Moreover, metal stocks denting the sentiments with Jindal Steel & Power (JSPL) and Tata Steel their recent losses triggered by concerns that higher interest rates could crimp sales of automobiles. The broader indices too were trading in the red at this point of time. The overall market breadth on BSE is in the favour of declines which have thrashed advances in the ratio of 812:1099, while 78 shares remained unchanged.

The BSE Sensex is currently trading at 15,645.40, down by 82.45 points or 0.52%. The index has a touched a high and low of 15,692.64 and 15,619.00 respectively.  There were only 7 stocks advancing against 23 declines on the index.

The broader indices too were trading with a loss; the BSE Mid cap and Small cap indices dropped 0.18% and 0.35% respectively.

The were no gainers on the index while Oil & Gas down 0.91%, Capital Goods down 0.67%, Bankex down 0.60%, Power down by 0.60% and Consumer Durables down 0.52% were the top losers on the index.

The top gainers on the Sensex were JP Associates up by 0.56%, Coal India up by 0.38%, TCS was up by 0.33%, BHEL up by 0.22% and ITC up by 0.17%.

On the flip side, Jindal Steel down by 2.35%, Tata Power down 2.24%, RIL down 1.53%, Maruti Suzuki down 1.10% and L&T down 1.04% were the top loser on the Sensex.

Meanwhile, in a bid to help stabilize the depreciating rupee and enhance bilateral trade, India and Japan have signed a $15 billion currency swap agreement. The agreement is expected to strengthen the rupee, which has been Asia’s worst performing currency this year due to various global and domestic factors. The Japanese yen has also been unstable on the back of unsure global outlook.

Prime Minister Manmohan Singh and Japanese Prime Minister Yoshihiko Noda decided to enhance the earlier bilateral currency swap arrangement from $3 billion to $15 billion, which had expired in June. Further the two leaders expressed hope that the enhancement will further strengthen financial cooperation, contribute to ensuring financial market stability and further develop growing economic and trade ties between the countries.

The move comes at a time when there have been growing concerns about foreign institutional investors (FIIs) pulling out of the Indian market, on the back of slowing economy growth, high inflation and decelerating industrial output.

Moreover, the two leaders also decided to speed up efforts by the relevant authorities for an early realization of some projects including seawater desalination at Dahej, a microgrid system using large-scale photo-voltaic power generation at Neemrana, gas-fired independent power producer in Maharashtra, and improve infrastructure such as ports, industrial parks and their surrounding facilities in Ennore, Chennai and the adjoining areas.

The S&P CNX Nifty is currently trading at 4,678.45, lower by 27.35 points or 0.58%. The index has touched a high and low of 4,693.50 and 4,672.40 respectively. There were 7 stocks advancing against 41 declines while 2 stocks remained unchanged on the index.

The top gainers of the Nifty were Sesa Goa up by 1.13%, IDFC up by 0.63%, JP Associates up by 0.56%, ITC up by 0.22% and Coal India up by 0.20%.

On the flip side, Tata Power down by 2.55%, Jindal Steel down by 2.43%, RCOM down 2.29%, Reliance down 1.64% and HCL Tech down by 1.45% remained the top losers on the index.

The Asian equity indices were trading on a mix note; Hang Seng was down 168.77 points or 0.91% to 18,349.90, Jakarta Composite was down 11.77 points or 0.31% to 3,757.45 and Nikkei 225 was down 52.37 points or 0.62% to 8,371.29.

On the flip side, Straits Times was up 2.00 points or 0.08% to 2,668.25, Shanghai Composite was up by 8.49 points or 0.39% to 2,178.50, Seoul Composite was up 4.07 points or 0.22% to 1,829.19 and Taiwan Weighted was up by 2.58 points or 0.04% to 7,059.25.