 "Markets remain lacklustre, financials weigh")
Benchmark Indices are trading in a tight range with negative bias weighed down by financial shares.
By 1130, Sensex dipped by 23 points at 19,303, and the Nifty was down 20 points at 5,840 levels.
According to Kunal Bothra, technical analyst, LKP Securities, “I believe that if 5800 holds on intraday then the short term uptrend could be intact. I think 5800 should act as a short term pivot. Markets are keenly waiting for the FOMC meet outcome. However, Indian markets have shrugged off yesterday's status quo from RBI.”
“While the Fed Chairman may attempt to give more clarity about tapering off QE3, it will be difficult to reduce market uncertainty because there does not seem to be a consensus in the FOMC on an explicit criterion for stopping or tapering QE3,” a note from Rabobank Financial Markets Research showed.
Asian stocks traded mixed amid looming uncertainty over the Federal Reserve’s bond-buying plans. The Nikkei fell 0.02% to 13,030, Singapore Straits Times rose 1% to 3,216, Hong Kong’s Hang Seng declined 0.6% to 21,090 while China’s Shanghai Composite index was down 0.3% at 2,150.
Back home, the rupee today plunged by 56 paise, or almost 1%, to trade at 58.43 against the dollar in early trade at the Interbank Foreign Exchange market due to renewed dollar demand from importers and appreciation of the US currency overseas.
On the sectoral front, BSE Consumer Durable and Bankex indices are down by almost 1%. However, BSE Realty and TECk indices have gained by nearly 1%.
Banking and financial shares have dropped after the Reserve Bank of India on Monday decided to halt its rate easing cycle, following the rupee's sharp fall since May and inflationary concerns. ICICI Bank, HDFC Bank and HDFC have gained between 0.6-1%.
Tata Motors is the top Sensex loser, down by almost 2%. Other notable losers are Hindalco, Cipla, NTPC, GAIL, ITC and TCS.
On the gaining side, index heavyweight shares like Reliance Inds and Infosys have gained by 1%.
Other gainers are Tata Power, Wipro, Tata Steel, JSPL, Hero Moto and Sterlite.
The experts appraisal committee (EAC) of the ministry of environment and forests (MoEF) has deferred Tata Power's application for green note for converting a 500 -Mw oil-fired unit at its Trombay plant here to a coal-fired one.
Shares of telecom services provider are trading higher by up to 2% in otherwise subdued market after the Telecom Regulatory Authority of India (TRAI) announced reduction in the national mobile phone roaming charges, but said there will be no free national roaming as of now.
The telecom regulator has also come out with conditional free national roaming plans, a move that will bring down cellphone roaming charges. The changes will come into effect from July.
Among the individual stocks, Reliance Communications and Idea Cellular are up nearly 2% each at Rs 113 and Rs 142 respectively, while Bharti Airtel is up 1% at Rs 300 on BSE.
VA Tech Wabag has gained 3.3% at Rs 455 after the company in a joint venture with Pratibha Industries has won an Rs 262 crore order from Melamchi Water Supply Development Board, Nepal.
Venus Remedies has surged 6.3% to Rs 291 after the company said it has received patent from Mexico for its novel antibiotic product Potentox.
The broader markets are out performing the benchmarks- BSE Midcap and Smallcap indices are up over 0.4%.
The market breadth in BSE remains positive with 964 shares advancing and 795 shares declining.
By 1130, Sensex dipped by 23 points at 19,303, and the Nifty was down 20 points at 5,840 levels.
According to Kunal Bothra, technical analyst, LKP Securities, “I believe that if 5800 holds on intraday then the short term uptrend could be intact. I think 5800 should act as a short term pivot. Markets are keenly waiting for the FOMC meet outcome. However, Indian markets have shrugged off yesterday's status quo from RBI.”
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On the global front, Federal Open Market Committee begins its two-day policy meeting today, almost a month after Fed Chairman Ben S. Bernanke said asset purchases could be scaled back should the U.S. employment outlook show “sustainable improvement.”
“While the Fed Chairman may attempt to give more clarity about tapering off QE3, it will be difficult to reduce market uncertainty because there does not seem to be a consensus in the FOMC on an explicit criterion for stopping or tapering QE3,” a note from Rabobank Financial Markets Research showed.
Asian stocks traded mixed amid looming uncertainty over the Federal Reserve’s bond-buying plans. The Nikkei fell 0.02% to 13,030, Singapore Straits Times rose 1% to 3,216, Hong Kong’s Hang Seng declined 0.6% to 21,090 while China’s Shanghai Composite index was down 0.3% at 2,150.
Back home, the rupee today plunged by 56 paise, or almost 1%, to trade at 58.43 against the dollar in early trade at the Interbank Foreign Exchange market due to renewed dollar demand from importers and appreciation of the US currency overseas.
On the sectoral front, BSE Consumer Durable and Bankex indices are down by almost 1%. However, BSE Realty and TECk indices have gained by nearly 1%.
Banking and financial shares have dropped after the Reserve Bank of India on Monday decided to halt its rate easing cycle, following the rupee's sharp fall since May and inflationary concerns. ICICI Bank, HDFC Bank and HDFC have gained between 0.6-1%.
Tata Motors is the top Sensex loser, down by almost 2%. Other notable losers are Hindalco, Cipla, NTPC, GAIL, ITC and TCS.
On the gaining side, index heavyweight shares like Reliance Inds and Infosys have gained by 1%.
Other gainers are Tata Power, Wipro, Tata Steel, JSPL, Hero Moto and Sterlite.
The experts appraisal committee (EAC) of the ministry of environment and forests (MoEF) has deferred Tata Power's application for green note for converting a 500 -Mw oil-fired unit at its Trombay plant here to a coal-fired one.
Shares of telecom services provider are trading higher by up to 2% in otherwise subdued market after the Telecom Regulatory Authority of India (TRAI) announced reduction in the national mobile phone roaming charges, but said there will be no free national roaming as of now.
The telecom regulator has also come out with conditional free national roaming plans, a move that will bring down cellphone roaming charges. The changes will come into effect from July.
Among the individual stocks, Reliance Communications and Idea Cellular are up nearly 2% each at Rs 113 and Rs 142 respectively, while Bharti Airtel is up 1% at Rs 300 on BSE.
VA Tech Wabag has gained 3.3% at Rs 455 after the company in a joint venture with Pratibha Industries has won an Rs 262 crore order from Melamchi Water Supply Development Board, Nepal.
Venus Remedies has surged 6.3% to Rs 291 after the company said it has received patent from Mexico for its novel antibiotic product Potentox.
The broader markets are out performing the benchmarks- BSE Midcap and Smallcap indices are up over 0.4%.
The market breadth in BSE remains positive with 964 shares advancing and 795 shares declining.