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Markets flat; Oil and Capital Goods shares dip

Markets are trading in a narrow range as losses in capital goods, Oil and Gas and power stocks limit gains. Furthermore, weakness in the Asian markets has dampened the sentiments of the market participants.
By 11.20 AM, the Sensex is up 6 points at 26,443 mark and the Nifty has dipped 1 point at 7,905 mark.
The broader markets are also showing a mixed trend. BSE Midcap index is up 0.1% and BSE Smallcap index has dipped 0.3%.

 Markets breadth on the  BSE is slightly negative with 1,337 shares declining and 1,078 shares advancing.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 127.33 crore on Monday, as per provisional data from the stock exchanges.

Rupee:

The rupee rose to 60.54 vs previous close of 60.5650/5750. Asian currencies inched up as investors expected the ECB to expand liquidity.

Asian Markets:

Asian shares inched higher on Tuesday as investors increasingly expect the European Central Bank to expand liquidity as soon as next week to boost the sagging euro zone economy – just as the U.S. Federal Reserve plans to end its bond-buying drive.

The euro slipped to a one-year low against the dollar as comments from ECB chief Mario Draghi late last week that the central bank was prepared to respond with all its “available” tools resonated in the market.

Sectors & Stocks:

On the sectoral front, BSE power index is the biggest loser down over 1% followed by Capital Goods and Oil and Gas indices. Bankex is down 0.2%.l However, Healthcare is the top gaining index up 1% followed by IT, FMCG and metal indices.  BSE Realty index is trading flat with a positive bias.
Tata Power is the top loser down over 3% after Supreme Court on Monday declared illegal coal block allocation since 1993. Following the tandem, NTPC has slipped by 1.5%.

Shares of oil and gas companies are facing pressure in the morning trades after oil prices rose in Asia as dealers are awaiting for the release of a batch of US economic data for fresh clues on whether the Federal Reserve will speed up its timetable for raising interest rates.

Oil majors ONGC and RIL have dipped by 1.6% and 0.8% each. The disinvestment of Government’s 5% stake in ONGC via  offer for sale mechanism  is set to be accomplished by the end of September.

In the capital goods segment, L&T and BHEL have declined 1% and 1.8% respectively.

Auto stocks are witnessing selling after Competition Commission of India imposed a combined penalty of over Rs 2,500 crore on 14 carmakers for indulging in unfair practices in the spare parts market. Maruti Suzuki, M&M and Tata Motors are down between 0.3-0.6%.

Financial space is also witnessing a decline with ICICI Bank, Axis Bank and HDFC Bank trading marginally in red. SBI is down over 1%.

On the flip side, metal stocks plunged yesterday after SC termed the allocation of coal blocks illegal within the span of 1993-2010.  However, fresh buying is visible in the metal pack today in the morning trades. Hindalco, Sesa Sterlite, Coal India and Tata Steel are up between 0.6-3%.

Pharma stocks are witnessing an upsurge today with Cipla, Sun Pharma and Dr Reddy’s Lab up between 0.5-2%.

Cigarette maker and Index heavyweight ITC has gained 0.6%. HUL is contributing over 1% to the rise.

Bharti Aitel, GAIL and TCS are some of the prominent names in green.

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