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Benchmark indices remain volatile in a narrow range with Sensex and Nifty trading marginally higher.
By 11:20 AM, the Sensex was trading higher by 42 points at 20,726 mark and the Nifty gained by 5 points at 6,150 levels.
According to Chetan Jain, Dy Manager (Derivatives Desk) at Anand Rathi Fin Services, “Nifty future has been consolidating in a thigh range at higher levels and waiting for some directional cues with both Bulls & Bears fighting to get their grip on the markets. Ahead of RBI Policy, FED Meet and Expiry markets are likely to become highly volatile this week and we are advising traders to remain cautious and maintain strict stop levels while trading.”
On the global front, Australian stocks scaled a five-year peak on Monday, leading a rebound in Asia after strong results from the likes of Microsoft pushed Wall Street to another record closing high, while investors gave the safe-haven yen a wide berth.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7%, recovering a chunk of last week's 1.1% loss -- the biggest in two months -- that was driven by concerns that China may tighten policy to keep prices under control.
Australian shares put on 1.2% to reach their highest since June 2008, Hong Kong's Hang Seng added 0.4%, and South Korea's KOSPI rose 0.3%. Japan's Nikkei climbed 1%, clawing back some of Friday's 2.7% drop.
Back home, the rupee weakened in early trade today as month-end dollar demand from importers continued. At 11:10 AM, the rupee was quoting at Rs 61.52 compared with Friday's close of Rs 61.46 per dollar.
The rupee is expected to weaken further during the day due to uncertainties ahead of RBI's second quarter monetary policy review tomorrow.
On the sectoral front, BSE Consumer Durables and Capital Goods indices have surged by nearly 2% each followed by counters like Oil & Gas, Auto and Banks, all gaining by 1% each.
However, BSE FMCG index has plunged by almost 2% followed by counters like Realty and Healthcare, all declining by 1% each.
The main gainers on the Sensex at this hour include L&T, RIL, ICICI Bank, HUL, ONGC and Maruti Suzuki, all gaining between 1-2%.
HUL has gained by nearly 2% after the company's sales volumes in the September quarter grew 5 percent, in line with market estimates.
On the losing side, ITC is trading lower by nearly 3% at Rs 331 on the Bombay Stock Exchange (BSE), after reporting lower than expected revenue and net profit growth for the second quarter ended September 2013 (Q2). Jefferies cuts ITC target price to Rs 409 from Rs 413, keeps buy rating.
Other notable losers are Sun Pharma, Coal India and Sesa Sterlite, all slipping by 1% each.
Among other shares, Alembic Pharmaceuticals has rallied 7% to Rs 194 on BSE after reporting a strong 45% year on year (yoy) jump in consolidated net profit at Rs 62 crore for the second quarter ended September 2013 (Q2) on back of strong performance from international generic formulation business.
Colgate Palmolive (India) has dipped 4% to Rs 1,228 on BSE after reporting 24.5% year on year (yoy) decline in net profit at Rs 110 crore for the quarter ended September 2013 (Q2) due to higher advertising expenses. The personal products maker had profit of Rs 145 crore in a year ago quarter. Net sales grew 15.9% yoy at Rs 896 crore.
The market breadth in BSE remains neutral with 973 shares advancing and 961 shares declining.
