Trades Remain In Narrow Range

The Indian markets are holding their morning losses, with the Sensex and Nifty trading lower by almost 0.3% each. Among the sectoral indices, IT, Teck, Bankex and Metals continue to be the biggest losers, dragging the markets lower. Consumer Durables, FMCG, Oil & Gas and Realty are trading higher.

The other Asian markets are also trading lower, with the Hang Seng, Nikkei and Shanghai down in the range of 0.1%-0.8%. A Bloomberg report said that the regional benchmark index is poised for its longest losing streak in six weeks, as the European Union’s outlook was cut by Moody’s ahead of the policy makers’ meetings. Australian shares declined as the central bank left the key rate unchanged.

European markets have also opened the day on a negative note, with the FTSE, CAC and DAX trading lower in the range of 0.4%-0.5%. The European stocks retreated, paring yesterday’s biggest rally in a month, as investors awaited a report that may reveal that US manufacturing teetered between expansion and contraction last month.

Back home, mortgage major HDFC is the leading index loser at Rs 721, shedding 1.72%. Auto majors Hero MotoCorp and Bajaj Auto are also trading down by 0.8% each. Tata Power, Cipla, ONGC and Hindalco are lower by over 1% each. Other stocks like ITC, Sterlite Industries, HDFC Bank and L&T are trading marginally in negatives.

Tata Steel is the leading gainer at the moment, up by 1.37% at Rs 362.95. Investors are seeing some buying opportunity after the stock was beaten down heavily in the previous trading sessions. RIL, SBI and HUL are also holding the markets up. Stocks like NTPC, M&M, Tata Motors and Dr Reddy’s Labs are also trading higher.

Kingfisher Airlines’ shares soared by 5.68% to Rs 9.68 per share. Media reports said that Kingfisher's Chairman Vijay Mallya gave guarantees worth Rs 5,904 crore for the carrier's loans and other liabilities in 2011-12, but did not get any commission for the same because of lenders' opposition.

The market breadth is looking weak as of now. On the BSE, 1288 shares have declined and 1195 shares have advanced. 150 shares are unchanged.