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The benchmark indices are trading in a sideways manner this morning as they seek to consolidate the 1% gains garnered in the previous session.
The BSE Sensex has traded in a narrow range of around 100 points since opening bell. At 10.30am, the Sensex was at 28,515, higher by 10 points and the Nifty index was virtually unchanged at 86,30. Dr Reddy, Coal India, Maruti and Reliance Industries are bolstering the indices, while Tata Steel, Hindustan Unilever, ONGC and ICICI Bank were capping the upside.
The broader markets are however doing better, with the midcap ands smallcap indices gaining 0.2% and 0.7% respectively. And the market breadth is strong, with 2 advances behind every one decline.
"On Wednesday, we witnessed a broad based rally in the market, which is an indication of the strength. Going forward, we expect the Nifty to continue its northward movement towards the next resistance zone of 8,680 - 8,700. On the flipside, 8,550 - 8,500 levels are seen as immediate support for the index," points out a morning note from Angel Broking.
There is likely to be a lot of stock-specific action as a deluge of companies would announce their Q1 results during the day. Bajaj Auto, Gail (India), Lupin, Biocon, Indian Bank, United Spirits, Wipro, Rallis India, TTK Prestige would announce their April-June quarter numbers.
RUPEE
The rupee weakened 7 paise to 63.65 against the US dollar in early trade at the Interbank Foreign Exchange following gains in the American currency against major currencies globally. The rupee had ended marginally lower by three paise at 63.58 against the US dollar yesterday on mild demand for the American currency from banks and importers.
OIL
Oil prices were mixed in Asia today, with WTI stuck below $50 a barrel after a rise in US stockpiles added to concerns over a supply glut. The US Department of Energy yesterday said the country's commercial crude stockpiles rose 2.5 million barrels last week, while supplies at the closely watched Cushing, Oklahoma, hub were up 800,000 barrels.
In late-morning Asian trade, US benchmark West Texas Intermediate (WTI) for delivery in September was up six cents at $49.25 after closing Wednesday below $50 a barrel for the first time since April.Brent crude for September fell six cents to $56.12.
SECTORS AND STOCKS
The BSE oil index, which had strengthened by more than 2% on Wednesday, has gained another 1% at 10,312. Cairn India has galloped by more than 6% at Rs 177 on reports that Britain's Cairn Energy Plc is set to vote against Vedanta Ltd's buyout offer for Cairn India's minority shareholders. BPCL, HPCL and IOC have gained 1-2% each, while RIL has extended its previous day's 4% rally by another 0.8% on hopes that it would post good numbers in the first quarter.
On the other hand, the banking index is being weighed down marginally by weakness in ICICI Bank.
Among the results candidates, Bajaj Auto, Gail (India), Biocon, Indian Bank and Wipro are trading higher by upto 1% each, while Lupin has edged lower ahead of their April-June quarter numbers to be unveiled during the day.
