Markets flat in morning deals

Metal and auto shares

Markets continued to display weakness with the Sensex trading flat at 17457. Nifty was unchanged at 5,295.

Meanwhile, broader markets outperformed the benchmark index. BSE mid-cap index gained 0.5% to 6,325. Small-cap index rallied smartly to 6790 - up 1%.

BSE FMCG index has gained 0.6% to 4,860. Capital goods and consumer durables indices also moved up in trades.

From the mid-cap space, REI Agro, Trent and Shoppers Stop have moved up 7-11% each. Among other gainers are Anant Raj Industries, KSK Energy and BASF India. Small cap gainers include Aqua Logistics, United Breweries, Nitin Fire and KRBL.
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(Updated at 0935 hrs)

The markets have opened on a lacklustre note in the absence of major cues from the US markets that were closed on account of Independence Day holiday. The Sensex is down 15 points at 17,448. Nifty is flat at 5299.

Asian shares eased on Thursday, as markets awaited the European Central Bank's policy decision later in the day. MSCI's broadest index of Asia-Pacific shares outside Japan inched down 0.2 per cent, while Japan's Nikkei average opened down 0.3 per cent.

BSE consumer durables index has gained 0.8% to 6,569. Metal, FMCG and power indices have gone up half a per cent each. However, most other sectors can see some selling pressure. BSE IT index remains in the red - down 0.3% at 5,681. Bankex and realty indices have also declined.

IT shares had fallen yesterday after rupee touched a multi-week high. However, the rupee snapped four-day gains to close 0.2 per cent lower on Wednesday due to profit-booking by traders and high dollar demand from oil marketing companies.

Bajaj Auto has declined 2% to 1,551. Gail India, ONGC, Wipro and NTPC have slipped 0.5-1.5% each. On the other hand, BHEL has gained 1.2% at 236. Hindustan Unilever has advanced 1% to Rs 443. Sterlite, Hindalco and Coal India are up as well.

Upstream oil regulator has rejected the price RIL had proposed for CBM gas saying the process followed was not in conformity with oil ministry guidelines. Shares of Reliance are trading flat at Rs 735.

Among individual stocks, SKS Microfinance has surged 4.3% to Rs 71.50 on reports that the RBI is likely to relax some of the norms pertaining to net worth, capital adequacy and provisioning needs of microfinance companies.

Telecom stocks are mixed after the Department of Telecommunications has released the initial norms for auction of 2G spectrum, but the crucial aspect of reserve price of spectrum is yet to be decided by an empowered group of ministers. Idea Cellular is down 1% at Rs 85.55. Reliance Communications is, however, up 1% at Rs 68.

Consumer durables maker, Videocon Industries, has slipped 0.6% to Rs 177 on reports that it plans to start operations in its Tamil Nadu plant unit in three – four months.

BSE market breadth is positive. Out of 1,574 shares traded, 997 shares have advanced while 529 shares have declined.