Sensex, Nifty in tight range; HUL major gainer

Indian equity markets continued to trade in a tight range since morning on the back of Spain woes and lack of support to foreign direct investment (FDI) in retail. The BSE Sensex and NSE Nifty marginally extended early gains tracking global markets. However, investors are waiting for Reserve Bank of India's move on July 31 and some more June quarter earnings. In currency markets, rupee opened lower against American currency and breached the 56-mark, amid increase in demand for the dollar from banks and importers. On sectoral front FMCG stocks were finding support on the back of impressive quarterly results from Hindustan Unilever. Select bank, capital goods and automobile stocks were trading higher, while information technology and power stocks were slightly weak. In global markets, Asian shares were trading mixed. Back home, the market breadth favoring positive trend; there were 1,207 shares on the gaining side against 1,071 shares on the losing side while 132 shares remained unchanged.

The BSE Sensex is currently trading at 16,915.08 up by 37.73 points or 0.22% after trading as high as 16953.94 and as low as 16884.32. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index up 0.17% while Small cap index was up 0.17%.

The top gainers on BSE sectoral space were, FMCG up by 1.61%, CD up by 0.81%, Bankex up by 0.46%, Oil & Gas up by 0.41% and Metal up by 0.35, while CG down by 0.67%, TECk down by 0.44%, IT down by 0.43%, HC down by 0.15%, and Auto down by 0.06% were the top losers on the index.

Hindustan Unilever up by 5.45%, Sterlite Industries up by 3.31%, Maruti Suzuki up by 1.80% ITC up by 0.88% and ICICI Bank up by 0.83% were top gainers on the Sensex, while Wipro down by 2.96%, BHEL down by 1.52%, Sun Pharma down by 1.45%, Dr Reddys Lab down by 0.87% and Hero Moto Corp down by 0.79% were the major losers in the index.

Meanwhile, after two rounds of rate cuts last month, State-run fuel retailers have hiked petrol prices by 70 paise per litre, with effect from July 23 midnight. The marginal rate hike, which is in line with firming international oil rates, comes on the heels of UPA candidate and former finance minister Pranab Mukherjee wining the presidential poll and also after two successive reductions last month -- Rs 2.02 per litre on June 3 and Rs 2.46 a litre on June 29.

As a consequence of the upward revision, the hike in selling price of petrol shall vary from Rs 0.70/litre to Rs 0.91/litre depending upon the state taxes. Petrol in Delhi will cost Rs 68.48 per litre with effect from midnight tonight as compared to Rs 67.78 a litre now.

Latest increase in the price of petrol is triggered by the twin factors of crude and petrol prices rising substantially in global bulk markets as well as a further depreciation in the rupee's value against the dollar. Average price of Indian basket of crude is $101.28 per barrel while international petrol price is $111.59 a barrel. The Rupee-dollar exchange rate is around Rs 55.76 to a dollar.

Currently, PSU oil firms are losing Rs 10.01 per litre on diesel, Rs 27.20/litre on kerosene and Rs 319/cylinder on LPG.  This revision, however, strengthens the expectation of diesel price hike being around the corner, with the decision timing remaining in uncertainty.

The S&P CNX Nifty is currently trading at 5,130.65, up by 12.70 points or 0.25% after trading as high as 5,139.40 and as low as 5,116.75. There were 29 stocks advancing against 21 declines on the index.

The top gainers on the Nifty were Hindustan Unilever up by 5.53%, Sterlite Industries up by 3.21%, PowerGrid up by 2.01%, Ambuja Cement up by 1.83% and Sesa Goa up by 1.77%. While, Wipro down by 3.04%, SAIL down by 1.87%, BHEL down by 1.34%, Sun Pharma down by 1.29% and IDFC down by 1.02% were the major losers on the index.

Asian equity indices were trading mixed; KLSE Composite down 0.29%, Jakarta Composite was down by 0.28%, Nikkei 225 down 0.20%, Taiwan Weighted down 0.29%, while Shanghai Composite up 0.71%, Hang Seng index up by 0.14%, Kospi Composite Index up 0.30% and Straits Times up 0.75% were the gainers.