Markets remain rangebound with negative bias

Key share indices continue to remain range bound with negative bias weighed down by IT shares.

By 11:15, the 30-share Sensex was down 50 points at 17,334 and the 50-share Nifty was down 13 points at 5,241. The Sensex and the Nifty touched an intra-day low of 17,322 mark and 5,236 levels, respectively so far.

On the global front, Asian shares steadied on Tuesday as investors saw weak regional and global economic data as raising the prospect for more stimulus from central banks to underpin growth, while Europe kept hopes alive for some progress in tackling its debt crisis.

Back home, the rupee rose by 11 paise to Rs 55.42 against the dollar in early trade today on the Interbank Foreign Exchange as the American currency weakened against euro overseas.

On the sectoral front, BSE IT and TECk indices have declined by nearly 1% each followed by counters like Metal, Banks, PSU, Auto and Power, all declining marginally. However, BSE FMCG and Oil & Gas indices have gained by almost 1% each.

“Nifty future is trading in a range of 5250 to 5330 levels since past four trading sessions. Nifty future has an immediate support of 5250 levels, if it manages to hold then again positive move may be seen towards 5320-5330 levels”, said Chandan Taparia, Derivative Analyst, Anand Rathi Financial Services.

From the IT space, TCS, Infosys and Wipro have plunged by nearly 1% each.

HDFC is the top Sensex loser, down nearly 2%.

Auto shares like Bajaj Auto, Hero Moto and Maruti Suzuki has declined between 0.3-1%. Auto stocks continue to remain on traders’ radars after monthly sales data.

Metal stocks like Tata Steel and Sterlite have gained by 1%. Karnataka government has allowed 18 mines to resume operations.

Among other shares, Courier and logistics company Blue Dart Express slipped nearly 13% to Rs 1,672 after an announcement that its foreign promoter plans to cut stake in the company from the current 81% to comply with the SEBI norms on minimum public share holding requirements.

Ind-Swift Laboratories has advanced 13.76% at Rs 58.30 as there is buzz that the Piramal group may be eyeing its contract research and manufacturing business.

United Spirits has gained 2.40% at Rs 1,010.15 as the company is nearing a deal to offload 49% stake in the flagship subsidiary, Whyte & Mackay.

The broader indices are out performing the benchmarks – BSE Midcap and Smallcap indices are up by 0.15%.

The market breadth remains positive with 1,109 advancing and 967 shares declining.