Markets slip into negative terrain

Oil & gas index drops

Markets have erased all morning gains and are trading in the negative zone now, owing to selling pressure in oil & gas stocks. The BSE Sensex is down 19 points at 18,592. Nifty is down 4 points at 5,656.

Broader markets have outperformed the Sensex. BSE mid and small cap indices have moved up 0.3% each at 6,655 and 7,149, respectively.

The rupee declined by 23 paise to 53.10 against the dollar in early trade today at the Interbank Foreign Exchange market on increased demand for the American currency from importers.

The realty index continued to lead gains - up 1.2% at 1833. Auto, power, bankex and PSU shares also traded in the positive zone. On the other hand, BSE oil & gas index shed 0.3% to 8,451.

"Bank Nifty is trading range bound on charts (11530 - 11240) trade and close above / below would add trigger in direction. CANARA BANK is a sell on rise whereas target expected is 405 in short term stoploss would be close above 434," said Ravi Nathani, Technical analyst, Nsetoday.com.

Bharti Artel shed 2% to Rs 264 after the Telecom Commission decided all spectrum given to operators in the 900-MHz band would be refarmed to the 1,800-MHz band at the time of renewal of licences, beginning 2014.

Jindal Steel, Sun Pharma and Reliance shed 1-2% each. On the other hand, Tata Power led gains - up 2% at Rs 106. Tata Motors, Dr Reddy's and Hindalco are up 2% each.