Markets trade in narrow range; Nifty below 5,250 level

Indian equity markets were trading in a very narrow range amid alternate bouts of buying and selling in late morning session, as investors were waiting for big triggers to boost sentiment. In currency markets, rupee pared early gains against the US dollar. However, reports about the irregularities in sanctioning of coal licenses and a drop in corporate earnings were also hurting sentiment to an extent. On sectoral front, information technology stocks were trading weak. FMCG, realty and oil stocks were finding some support, while healthcare, automobile, power, bank and metal stocks were trading mixed. In global markets, most Asian shares were trading mixed. Back home, the market breadth favoring negative trend; there were 1,136 shares on the gaining side against 1,137 shares on the losing side while 130 shares remained unchanged.

The BSE Sensex is currently trading at 17,332.61 down by 51.79 points or 0.30% after touching a high of 17378.68 and low of 17,315.76. There were 9 stocks advancing against 21 declines on the index.

The broader indices also trading mixed; the BSE Mid cap index was up by 0.30% and Small cap index was down by 0.05%.

The top gainers on the BSE sectoral space were, FMCG up by 0.62%, Realty up by 0.41%, Oil & Gas up by 0.39%, CD up by 0.08% and CG up by 0.02%. While IT down by 0.72%, TECk down by 0.51% Metal down by 0.36%, Bankex down by 0.32% and PSU down by 0.31% were the top losers on the index.

The top gainers on the Sensex were Reliance up by 1.01%, Dr Reddys Lab up by 0.88%, Tata Steel up by 0.85%, HUL up by 0.76% and Tata Motors up by 0.69%. On the flip side, HDFC was down by 1.92%, Tata Power was down by 1.43%, Cipla was down by 1.33%, NTPC was down by 1.21% and Hindalco was down by 1.20%, were the top losers on the Sensex.

Meanwhile, driven by the weak demand in traditional markets such as Europe and the US, India's export, which is largely consumed by these developed economies, slumped by 14.80% - steepest dive in three years-to $ 22442.96 million in July 2012, lower than the level of $ 26340.73 million (Rs. 116998.69 crore) during July, 2011. The cumulative value of exports in the first four months (April-July) of the current financial year stood at $ 97646.92, lower by 5.06% than the $102848.24 million recorded during the corresponding period of last year. India has set an export target of over $360 billion for the current fiscal 2012-13 after crossing the $300-billion mark last fiscal.

Imports into the country for the month under review stood at $37936.18 million, representing a negative growth of 7.61% (in Dollar terms) over the level of imports valued at $41059.75 million in July, 2011. While, cumulative value of imports for the period April-July, 2012-13 was $153195.59 million, as against $ 163801.20 million, registering a negative growth of 6.47% in dollar terms.

This notable decline in exports in July has resulted in ballooning up of the nation’s trade deficit to $15493.22 million for the month under review, as against $14719.02 million in same month previous year. However, a cumulative trade deficit in April-July period of the current fiscal was recorded lower at $55548.67 million, against the deficit of $ 60952.96 million registered in the like period of 2011-12.

Oil imports during July 2012 were valued at $ 12229.1 million, 5.52% lower than oil imports valued at $ 12943.0 million in the corresponding period last year. Oil imports during the first four months of the current fiscal were valued at $ 53814.1 million, 2.76% higher than the oil imports of $ 52368.0 million in the corresponding period last year.

Furthermore, non-oil imports during July were estimated at $ 25707.1 million, 8.57% lower than non-oil imports of $28116.7 million in July 2011. Non-oil imports during April-July period were valued at $99381.5 million, 10.82% lower than the level of such imports valued at $ 111433.2 in April-July 2011.

The S&P CNX Nifty is currently trading at 5,239.05, down by 14.70 points or 0.28% after trading in a range of 5,252.75 and 5,234.80. There were 20 stocks advancing against 30 declines on the index.

The top gainers of the Nifty were Power Grid up by 1.69%, Reliance up by 1.18%, DLF up by 1.03%, Tata Steel up by 0.89% and BPCL up by 0.84%. On the flip side, IDFC down by 2.35%, HDFC down by 2.02%, Ambuja Cement down by 1.35%, Tata Power down by 1.33% and Cipla down by 1.31%, were the major losers on the index.

Most of the Asian indices were trading mixed; Nikkei 225 down by 0.10%, Hang Seng index down by 0.25%, Shanghai Composite down by 0.50%, Kospi Composite Index down by 0.29%, while Taiwan Weighted up by 0.01%, Jakarta Composite up by 0.08%, Straits Times up by 0.08% and KLSE Composite up by 0.03 points were the gainers.