Markets remain rangebound

Benchmark Indices continue to trade in a tight range on uncertainty over ability of Congress-led UPA government to pass key reforms in the winter session of the Parliament. Markets also remain volatile ahead of Futures and Options expiry on Thursday.

By 1125, Sensex gained 35 points at 18,542, and the Nifty was up 7 points at 5,633 levels.

On the global front, Asian shares inched up on Monday on hopes that Greece can avoid a near-term bankruptcy, with the market focusing on a euro zone finance ministers meeting later in the day, but a regional Spanish vote favouring separatist parties capped gains.

It was the sixth day in a row of advances for MSCI's broadest index of Asia-Pacific shares outside Japan and comes after the euro and global shares climbed on Friday on expectations that an agreement will be reached soon to disburse aid for Greece, and on a rise in Germany's Ifo business climate index.

Back home, the rupee recovered by 8 paise to 55.43 against the American currency in early trade today, snapping a four-session losing streak, at the Interbank Foreign Exchange on dollar selling by exporters and some banks.

On the sectoral front, BSE Consumer Durable, Metal, Healthcare, IT, Capital Goods and FMCG indices have surged by 1% each. However, BSE PSU index has slipped by nearly 0.5%.

The main gainers on the Sensex at this hour include Sterlite, Tata Motors, Tata Steel, Hindalco, Dr Reddy’s, Bharti Airtel, HUL and Tata Power, all surging between 1-3%.

According to Navneet Daga, Derivative Analyst, KR Choksey Securities, “Well all of Tata Group are interesting trading stocks, Tata Motors a bounce till 268/272 likely, but Tata Global after a steep correction had gone rough patch resistance zone its trading at 167 nearly selling likely to emerge from current levels. While Tata Power major support near 99 levels traders should buy any weakness in this counter”.

On the losing side, M&M, NTPC, BHEL, HDFC Bank and Sun Pharma have declined between 1-2%.

Among other shares, Geodesic has surged 5% at Rs 40.60 ahead of its board meeting tomorrow to consider a share buyback proposal.

Jet Airways (India) has rallied over 18% at Rs 599, extending its past few days surge, on reports that the private airliners may issue fresh shares to Etihad Airways, the Abu Dhabi-based carrier at around Rs 800 per share to reduce its debt.

Meanwhile, BSE Midcap index surged by 0.6% whereas BSE Smallcap index gained 0.7%.

The market breadth in BSE remains healthy with 1,360 shares advancing and 933 shares declining.