Markets consolidate; Hero MotoCorp up 2.5%

Gains in index heavyweights like ONGC, ITC and TCS help the index remain in the positive territory

Markets continue to remain flat within a tight range. Gains in index heavyweights like ONGC, ITC and TCS helped the index remain in the positive territory. At 1130 hrs, the Sensex was 32 points at 20,989 and the Nifty added 13 points to trade at 6,254.

In the broader markets, the midcap index was up 0.5% and the smallcap index gained 0.4%, almost in line with the Sensex up 0.2%.

The rupee was higher for a third session, tracking euro gains after the ECB gave no indication of policy easing. The pair is at 61.64 versus 61.75 Thursday close.

In Asia, shares spent much of Friday in a state of suspended animation as tension mounted ahead of jobs data that could make or break the case for an imminent scaling back in U.S. stimulus.

Government borrowing costs from Japan hit fresh highs on trepidation the Federal Reserve could start tapering its $85 billion of monthly debt purchases at its policy meeting on December 17 and 18.

Share markets across Asia were mixed at best. MSCI's broadest index of Asia-Pacific shares outside Japan was dead flat, as was South Korea's.

Shanghai stocks slipped 0.6% as China set its yuan at a record high, continuing the slow appreciation of the currency.

Back home, on the sectoral front, Bankex, Teck and IT were the only indices in red.

Auto, Consumer Durables and Power indices were up with over 1% gain.

Capital Goods, Realty, Oil & Gas, Metal and FMCG indices added 0.2-0.4%.

Bharti Airtel, Wipro, HDFC Bank, Hindalco, HDFC and Tata Steel down 0.5-1% were the major losers among Sensex-30.

Among the gainers were Hero MotoCorp, Coal india, NTPC, Tata Power, ONGC, Mahindra & Mahindra and Sesa Sterlite up 1-2.5%.

Dr Reddys Lab, Jindal Steel, Bajaj Auto, BHEL, Sun Pharma, Tata Motors, TCS, Maruti Suzuki and ITC gained 0.5-0.9%.

PSU stocks were in focus on buzz that SU companies may announce an interim or special dividend to equity shareholders in third quarter (October-December) of the current financial year 2013-14.

BEML, Engineers India and HMT are up more than 2% each, while Shipping Corporation of India, STC and Power Grid Corporation are up between 1-2%.

Jubilant Life Sciences slipped 5% at Rs 120, extending its previous day’s 10% fall, after the company said that US drug regulator has issued a warning letter with regards to its facility in the US.

MphasiS was down 1.5% at Rs 395after reporting a 1.25% quarter-on-quarter (qoq) decline in net profit at Rs 190.22 crore for the quarter ended October 31, 2013 (Q4) due to lower revenue growth. The IT consulting and software firm had profit of Rs 192.64 crore in previous quarter.

The market breadth was very positive. 1132 stocks advanced while 877 stocks declined on the BSE.