Benchmarks remain range bound in late afternoon session

The Sensex and Nifty continue to trade range bond fluctuating between positive and negative terrain, as investors turned cautious ahead of the referendum on Thursday in which Britain will decide to stay or leave the European Union. Losses however remained capped with an UNCTAD report stating that India's foreign direct investment (FDI) is likely to cross $60 billion this year on favorable policy environment even as the FDI flows globally are set to witness a decline. The report said, the large increase of announced Greenfield investments in manufacturing industries may provide further impetus to FDI this year.

On global front, Asian markets were trading mostly higher, with investors focused on Thursday's vote on Britain's possible withdrawal from the European Union and after relief over US Federal Reserve Chair Janet Yellen's statement that the Fed would remain cautious in raising interest rates.

Back home, stock from realty, consumer durables, banking, pharma and power sectors were trading in green, while IT, telecom, FMCG, auto, teck and industrial sectors are showing some weakness.

In scrip specific development, Asian Paints was up after revising plans for its manufacturing plant in Andhra Pradesh. Tech Mahindra has jumped after acquiring UK-based Bio Agency in an all-cash deal. Jindal Steel & Power rose on fund raising reports.

The BSE Sensex is currently trading at 26810.05, down by 2.73 points or 0.01% after trading in a range of 26772.94 and 26887.29. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.04%, while Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were Realty up by 0.74%, Bankex up by 0.47%, Consumer Durables up by 0.19%, PSU up by 0.17%, Capital Goods up by 0.01% while, Auto down by 0.50%, Metal down by 0.36%, FMCG down by 0.18%, IT down by 0.11%, Power down by 0.10% were the losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 1.92%, Adani Ports &Special up by 1.25%, Coal India up by 1.01%, ICICI Bank up by 0.82% and Hero MotoCorp up by 0.76%. On the flip side, Tata Motors down by 2.37%, Tata Steel down by 1.44%, GAIL India down by 1.33%, Hindustan Unilever down by 1.04% and Reliance Industries down by 0.63% were the top losers.

Meanwhile, with an aim to monetize government's stake in listed PSUs, the Finance Ministry is planning to launch a new Exchange Traded Fund (ETF) as an additional mechanism to the existing Central Public Sector Enterprises (CPSE) ETF, comprising stocks of listed CPSEs and government’s stake in other corporate entities.

The Department of Investment and Public Asset Management (DIPAM) has invited bids for the second ETF from 'Advisors' by July 11to help create and launch the proposed fund. Under the new ETF government will appoint one advisor for the new CPSE ETF, which will be involved in a three stage process wherein stage-I shall be to help create a new ETF, stage-II shall include helping select an Asset Management Companies (AMC), a Legal Adviser and help launch and manage NFO. Stage III shall comprise FFO (follow on offer)/Tap and any other subsequent offerings and obligations arising out of NFO (New Fund Offer)/FFO/Tap.

DIPAM has also stated that the entity appointed as Advisor, will not be eligible to participate for selection as the AMC or ETF provider, so as to avoid any situation of conflict of interest. The ETF may include government stake in companies held through SUUTI as well as those in which it still has some holding. Among the listed entities, SUUTI holds 11.72 per cent in Axis Bank, 11.27 per cent in ITC and 8.18 per cent in L&T.

The CNX Nifty is currently trading at 8215.30, down by 4.60 points or 0.06% after trading in a range of 8207.95 and 8238.35. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 2.07%, Adani Ports &Special up by 1.16%, Ambuja Cement up by 1.10%, Coal India up by 1.02% and Zee Entertainment up by 0.93%. On the flip side, Tata Motors - DVR down by 2.69%, Tata Motors down by 2.50%, Bharti Infratel down by 2.11%, Hindalco down by 1.78% and Tata Steel down by 1.60% were the top losers.

FTSE Bursa Malaysia KLCI increased 3.46 points or 0.21% to 1,637.69, KOSPI Index jumped by 9.88 points or 0.5% to 1,992.58, Jakarta Composite up by 12.24 points or 0.25% to 4,890.96. Shanghai Composite increased 18.37 points or 0.64% to 2,896.92, Taiwan Weighted rose to 31.4 points or 0.36% to 8,716.25 and Hang Seng increased 135.27 points or 0.65% to 20,803.71. However, Nikkei 225 decreased 103.39 points or 0.64% to 16,065.72