Markets trading in tight range

Key benchmark indices are trading in a narrow range with negative bias prevailing. The Sensex opened at the day's low of 17,800 on weak cues from global markets.

At 1250 hrs, the 30-share Sensex was down 31 points at 17,854 and the 50-share Nifty was down 7 points at 5,414.

On the global front, the Nikkei share average fell on Wednesday after a recent rally, pulled down by investors' growing impatience with the European Central Bank to act soon to stem the euro zone's debt crisis. Weak Japanese export data added to the pessimism.

Having banked on some action by the ECB, investors had become a bit edgy for signs that the central bank will indeed agree details for a bond buying programme to bring down the high borrowing costs for countries like Spain and Italy.

Back home, in restricted trading in view of bank strike, the rupee trimmed its early gains today but is being quoted higher by 9 paise to 55.48 against the US currency in the late morning trade on selling of dollars from banks on the back of lower dollar in overseas market.

On the sectoral front, BSE Power index is down nearly 1% followed by counters like FMCG, Oil & Gas, Realty, Capital Goods and Metal, all dipping marginally. 

Bharti Airtel is the top Sensex loser, down nearly 3% after Morgan Stanley downgraded the stock to "equal-weight" from "overweight".

According to Reuters report, “Morgan Stanley says traffic growth is coming at the expense of operating margins as tariff wars in the sector bring down average revenue per minute for voice calls.” The investment bank slahed its target price to Rs 280 from Rs 366, the report added.

From the Power pack, Tata Power and NTPC have declined between 1-2%.

Index heavyweight Reliance Inds is down nearly 1%.

Other notable losers include JSPL, HDFC, L&T, Sterlite, GAIL India, HUL, ONGC nad ITC.

On the gaining side, Dr Reddy’s Lab is the top Sensex gainer, up nearly 2%. Sun Pharma and Cipla have gained between 0.4-1%.

Auto shares like Hero Moto, Bajaj Auto, Maruti Suzuki and Tata Motors have increased between 0.1-1%.

Among other stocks, AGC Networks was locked in 20% upper circuit at Rs 365, also its four-year high on back of over ten-fold jump in trading volumes.

Plethico Pharmaceuticals has hit the lower circuit filter of 20% at Rs 214, for a second consecutive day after its lenders invoked a part of the pledged shares.  

The broader indices are trading marginally positive – BSE Midcap and Smallcap indices are up 0.1% each.

The market breadth in BSE remains neutral with 1,286 advancing and 1,271 shares declining.