Markets continue to trade range bound in early noon deals

Indian equity benchmarks continued to trade in a tight band in early noon deals keeping their head tad above water as investors indulged in enlarging positions amid continued overseas capital inflows and positive economic data. However, gains remained capped on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 101.98 crore on November 18, 2014. Meanwhile, the Coal Ministry is likely to issue draft rules for e-auction for 74 coal blocks, the rules will be put up for public consultation as well as stakeholder consultation too, it is being done to be fair to all the parties involved. The draft rules are expected to provide clarity on compensation and will pave way for a cap on tariffs levied.

On the global front, most of the Asian equity benchmarks were trading in the green at this point of time, though Nikkei has lost around 0.20% after PM Abe announced fresh elections and the proposed hike in consumption tax was delayed. Investors will be looking at the Bank of Japan meeting scheduled later today for cues. Back home, Indian rupee was trading at 61.80 against US dollar versus yesterday’s close of 61.74. The rupee is seen heading to 62 a dollar due to dollar demand from oil marketing companies and importers.

On the sectoral front, realty, fast moving consumer goods and capital goods witnessed the maximum gain in trade, while software, oil and gas and banking remained the top losers on the BSE sectoral space. The broader indices, however, were outperforming benchmarks and were trading with a gain of over half a percent while the market breadth on the BSE was positive; there were 1509 shares on the gaining side against 1,093 shares on the losing side while 102 shares remain unchanged.

The BSE Sensex is currently trading at 28186.41, up by 23.12 points or 0.08% after trading in a range of 28132.22 and 28294.01. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.78%, while Small cap index up by 0.71%.

The gaining sectoral indices on the BSE were Realty up by 1.62%, FMCG up by 1.20%, Capital Goods up by 0.91%, Metal up by 0.54% and Healthcare up by 0.50% while, IT down by 0.20%, Oil & Gas down by 0.18%, Bankex down by 0.16% and PSU down by 0.10% were the few losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 2.70%, Hindustan Unilever up by 1.56%, ITC up by 1.49%, Bharti Airtel up by 1.43% and Dr reddy was up by 1.37%. On the flip side, Tata Motors down by 1.24%, Cipla down by 0.94%, Coal India down by 0.88%, Sun Pharma down by 0.76% and Mahindra & Mahindra down by 0.73% were the top losers.

Meanwhile, the Department of Telecom (DoT) proposal to conduct spectrum auctions in two phases, between February and May next year, has started getting resentment from the telecom operators, who are saying that phased auction will only create uncertainty.

Earlier, as per a DoT presentation after a closed door meeting with the Minister of IT & Communications, it showed its keenness on holding one round of auctions on February 25, before the end of this fiscal year, and another on May 30, when additional frequency bands are expected to be vacated by the Defence forces. The auctions in February will adhere to the earlier schedule with spectrum in the 900 MHz, 800 MHz and the 1800 MHz bands, while the one in May is for airwaves in the 2100 MHz, 2300 MHz and 2500 MHz bands.

However, the telcos are disappointed with this proposal as they wanted these frequencies to be sold in a simultaneous auction, reasoning that if all the bands had been clubbed together in a single auction, there would have been more supply of airwaves and companies would possibly have to pay less.

Telecom operators have argued that the 2100 MHz band is not a substitute for existing GSM players, hence selling spectrum in the 2100 MHz and 2500 MHz bands is not a fallback option for an existing player but bringing these additional frequencies will ease the demand for 900 MHz by players who do not have 3G spectrum. The Cellular Operators Association of India has further stated that the Telecom Ministry should quickly get the Defence Ministry to vacate spectrum early and put all bands on sale in February or extend the licence tenure of incumbent players and hold a single auctions in May.

The CNX Nifty is currently trading at 8429.50, up by 3.60 points or 0.04% after trading in a range of 8412.30 and 8455.65. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were DLF up by 2.95%, Hindalco up by 2.87%, Zee Entertainment up by 1.84%, BPCL up by 1.80% and HUL up by 1.48%. On the flip side, Cairn India down by 1.25%, Tata Motors down by 1.22%, Sun Pharma down by 1.08%, Cipla down by 1.04% and Coal India down by 1.02% were the top losers.

Asian markets were trading mostly in the green; Shanghai Composite rose 0.39 points or 0.02% to 2,456.75, FTSE Bursa Malaysia KLCI increased 6.5 points or 0.36% to 1,824.88, Straits Times strengthened 19.55 points or 0.59% to 3,333.28, Jakarta Composite gained 21.18 points or 0.42% to 5,123.65 and Taiwan Weighted was up by 104.17 points or 1.18% to 8,963.24.

On the other hand, Hang Seng declined 106.27 points or 0.45% to 23,422.90, Nikkei 225 decreased 32.89 points or 0.19% to 17,311.17 and KOSPI Index was down by 0.14 points or 0.01% to 1,966.87.