Markets trading in narrow range; Nifty slips into red territory

Indian equity markets continued trading in narrow range amid alternate bouts of buying and selling in the late morning session. The 30-share BSE benchmark rose 24.43 points, while 50-share NSE Nifty went down by 2 points. In currency markets, Indian rupee depreciated against dollar in the late morning trade amid increased demand for the American currency from importers. On sectoral front, IT, metal, healthcare and PSU stocks were trading in green, while auto, bank and consumer durable stocks were trading in red. In global markets, most Asian shares were trading in red on Friday as investors sentiment was weighed down by cues from the US and European markets, where the mood was a bit bearish overnight following the release of some disappointing US economic data. Back home, the market breadth favoring positive trend; there were 1,250 shares on the gaining side against 1,147 shares on the losing side while 114 shares remain unchanged.

The BSE Sensex is currently trading at 18,495.80 up by 24.43 points or 0.13% after trading in a range of 18,545.58 and 18,468.27. There were 14 stocks advancing against 16 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.37% and Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were, TECk up by 1.01%, IT up by 0.89%, Metal up by 0.44%, HC up by 0.39% and PSU up by 0.37%. While, Auto down by 0.69%, Bankex down by 0.28%, Power down 0.24%, CD down 0.14% and Realty down by 0.05% were the top losers on the index.

The top gainers on the Sensex were Bharti Airtel up by 3.01%, Jindal Steel up by 2.41%, Infosys up by 2.01%, ONGC up by 1.46%, and Dr Reddy’s up by 1.14%. On the flip side, HDFC was down by 1.30%, Cipla was down by 1.27%, Hindalco was down by 0.99%, Gail India was down by 0.93% and ICICI Bank was down by 0.90% were the top losers on the Sensex.

Meanwhile, marking second reduction in rates since October, state-owned oil marketing companies (OMC’s) slashed the price of petrol by 95 paise per litre (minus state levies), effective November 15, midnight, on account of fall in international oil prices. The last reduction in petrol price before this was the 56-paise cut to Rs 67.90 a litre on October 9. Thereafter, the rate was increased by 29 paise in wake of government’s decision to raise the commission paid to petrol pump dealers.

Petrol in Delhi would now cost Rs 67.24 a litre, from earlier Rs 68.19 a litre. While, petrol price in Mumbai has been lowered by Rs 1.20 per litre to Rs 73.53, the same will cost Rs 70.57 a litre in Chennai from Friday instead of Rs 71.77 a litre currently. In Kolkata, the price has been cut by Rs 1.19 to Rs 74.55 per litre.

Basically, the trends in the international oil market and Indian rupee-USD exchange rate are being closely monitored and the same are usually reflected in future price change. At present, the international oil prices are relatively stable. However, there has been significant volatility in the rupee-dollar exchange rate with uncertainty about its future direction.

The government had in June 2010 deregulated petrol prices giving oil companies freedom to fix rates in line with the cost. However, prices have seldom moved in line with cost and oil companies have often buckled under political pressure to keep rates checked to help the government control inflation.

The S&P CNX Nifty is currently trading at 5,628.75, up by 2.25 points or 0.04% after trading in a range of 5,646.70 and 5,621.95. There were 15 stocks advancing against 35 declines on the index.

The top gainers of the Nifty were Bharti Airtel up by 3.26%, Jindal Steel up by 2.64%, Infosys up by 1.98%, ONGC up by 1.40% and Dr Reddy up by 1.36%. On the flip side, HDFC down by 1.86%, Cipla down by 1.29%, Cairn down by 1.20%, BHEL down by 1.15% and Hindalco down by 1.12%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Kospi Composite down by 0.53%, KLSE Composite down by 0.34%, Taiwan Weighted down by 0.19% and Shanghai Composite was down by 0.85%. While Nikkei 225 up by 2.20%, Straits Times up by 0.05% and Hang Seng up by 0.08% were the gainers. Jakarta Composite remain closed.