The markets are trading marginally in the green this afternoon. The Sensex is quoting at 18,117, higher by 31 points and the Nifty is at 5430, up nine points. On the other hand, the midcap index is down 37 points at 6725 and the smallcap index is down 30 points at 8159.
The Sensex has been confined to a narrow range of a little over 100 points since opening bell. However, given the negative closing in the past three trading sessions and the continued softness over the past eight weeks, some green is a welcome development. The easing in food inflation seems to have contributed to the calmness back home. And steadiness across the European bourses have also done their part.
Food inflation slipped further to 7.47% for the week ended May 7 on the back of cheaper pulses, vegetables and wheat. This is the lowest rate of price rise in food items in the last 18 months. Food inflation was 7.70% in the previous week and over 22% in the corresponding week of 2010. And on the European front, the CAC, FTSE and DAX have opened higher by upto half a percent each.
RIL is witnessing buying interest around the 900 levels to emerge as the top gainer on the BSE. The index heavyweight has soared by 1.8% at Rs 918 after being battered in the previous session. M&M, TCS and ONGC have added around a percent each at Rs 679, Rs 1166 and Rs 276 respectively. And L&T has edged higher by 0.1% at Rs 1507 after its Q4 net rose 20.6% to Rs 1,686 crore.
On the other hand, RCom has weakened by 2.7% at Rs 83 and is currently the top loser on the BSE. Tata Power has shed 2.1% at Rs 1222 ahead of its results scheduled later in the day and DLF has lost 2% at Rs 225.
Out of 2,719 stocks traded on the BSE so far, 1053 have advanced, while 1,511 have declined, indicating a negative market breadth.