Markets may end range bound session of trade on a subdued note. Weak cues from Asia and losses in realty and metals shares weighed on the markets.
Sensex opened marginally higher at 18,911 and traded in a 239 points range. Weakness in Asian markets especially Chinna's Shanghai Composite nose dived 3% on policy concerns put investors to the sidelines. Currently, markets were trading flat, the Sensex was up 19 points, at 18,884 and Nifty was up 4 points at 5658.
Elsewhere in Asia, China's Shanghai Composite was down 3%, at 2,707 led by losses in financials after the government unexpectedly raised reserve requirement for banks by 50 bps on Friday. Hong Kong's Heng Seng was trading fell 0.5%, at 24,156, mainland Chinese banks and property developers weighed. Japan's Nikkei Stock Average was trading ended flat at 10,500. South Korea's Kospi Composite fell 0.4%, at 2,099.
India ADAG (Anil Dhirubhai Ambani Group) shares were beaten down badly, Reliance Infra slipped 7.6%, Reliance Capital fell 6.1%, Reliance Power dipped 6% and Reliance Communication was off 4.3% after the Securities and Exchange Board of India (SEBI) issued an order on Friday asking the AGAG firms (Reliance Power and Reliance Infrastructure) not to partcipate in the capital market as they used money from overseas borrowing to invest in the stock market.
Some of the OMCs partly pared gains, Hindustan Pertoleum was up 0.5%, Bharat Petrolem fell 0.8% and Indian Oil Corporation gained 2.2% each after government hiked petrol prices by Rs 2.54 per litre during the weekend.
Also Tata Steel after falling more than 1%, was up 0.4% at Rs 625 after it fixed the follow on public offer price between Rs 594-610 which will hit the markets between January 19 to 21. At the higher end of the price band company is expected to raise Rs 3,477 crore from the FPO,
BSE IT was the top sectoral gainer, TCS was up 1.6% ahead of Q3 results, Infosys surged 1.5% and Rolta was up 0.8%.
Metal shares lost sheen, Sesa Goa fell 2.5%, Hindalco was off 2.1% and Sterlite fell 4.8%.
Realty stocks lost ground, Sobha Developers fell 4.6%, Orbit Corporation declined 3.5% and HDIL fell 3%.
On the Sensex, prominent losers were Jaiprakash Associates, down 5.3%, DLF, down 3.1% and Hero Honda, down 1.7%. Major gainers were HDFC, up 2.9%, TCS up 1.7% and Cipla up 1.6%.
From the broader markets, midcap and smallcap indices were down over 1% each.