Markets rangebound; Metal stocks gain; GAIL dips 2%

Markets continue to trade in a narrow range with a negative bias weighed down by Index heavyweights RIL and TCS. At 11.30 AM, the Sensex is down 22 points at 26,125 and Nifty is down 6 points at 7,789

 

Following the momentum, the broader markets are trading flat. BSE Midacp index is down 0.13% and BSE Smallcap index is up 0.06%

 

Asian Markets

 

Asian stock markets edged broadly higher on Thursday and the Australian dollar jumped after a surprisingly strong reading on Chinese manufacturing bolstered hopes for recovery in the world's second-biggest economy. The HSBC flash PMI came in at 52.0 for July, well above forecasts of a small rise to 51 in July and the highest reading in 18 months. There was also good news on the outlook, with a sub-index of new orders reaching 53.7.

 

The news injected some life into what had been a very sluggish session, and helped China's CSI300 index of leading Shanghai and Shenzhen A-share jump 1.1%.

 

Japan's Nikkei added 0.2% while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.3%.

 

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The rupee is trading at 60.02/03 versus its previous close of 60.0925/1025, after hitting 59.98, its highest since July 14.

Foreign investors bought Indian shares worth 6.52 billion rupees on Thursday, provisional exchange data showed

 

Sectors & Stocks

 

On the sectoral front, BSE Realty and Metal indices are leading the rally up over 1%, followed by Power and FMCG indices. Bankex is up 0.2%. In contrast, BSE Oil and Gas, Consumer Durables, Health Care and Auto indices are down between 0.3-0.6% . BSE IT is trading flat with a negative bias. 

 

The technology pack is witnessing heavy selling during the morning trades with TCS and Infosys down 0.4%. However, Wipro is trading marginally in green ahead of the Quarterly results.

 

The Pharma stocks which were witnessing some fresh buying during the early trades are trading in red on account of profit taking. Cipla, Sun Pharma and Dr Reddy’s Lab are down between 0.1-1%

 

The Auto pack is trading weak with Baja Auto, Tata motors and Hero Motocorp down between 0.5-1%

 

Financial shares which zoomed yesterday are also also experiencing profit taking at high levels. ICICI Bank, Axis Bank and HDFC have lost 0.4%. However, some renewed buying is visible in shares of SBI and HDFC Bank up 0.5% each

 

Oil and Gas majors RIL and GAIL have dipped 0.6% and 2% respectively

 

On the flip side, fresh buying is evident in the metal pack with Tata Steel and Hindalco up nearly 2%. Coal India is trading marginally in green. The metal shares are rallying on strong reading of Chinese manufacturing data.

 

FMCG major ITC and HUL have gained between 0.1-1%

 

Prominent names in green include BHEL, Tata power and ONGC among others

 

Among other shares, Max India, Reliance Capital and Bajaj Finserv have moved higher between 3-5% on BSE, after media reports that the Union Cabinet approved raising the foreign direct investment (FDI) cap in the insurance sector to 49% from the existing 26%.

 

Panacea Biotech has surged 15% to Rs 186 after the company announced fund raising plans of upto Rs 250 crore.

 

TVS Motor Company (TVSL) has moved higher by 6% to Rs 179, also its record high on National Stock Exchange, ahead of its April-June quarter (Q1) earnings today.

 

The market breadth is slightly positive on the BSE with 1,313 shares advancing and 1,137 shares declining.