Markets range-bound amid volatile trades

Nifty holds above 6,000 levels

Indian shares tarded range-bound with 50-share Nifty index holding key 6,000 levels in morning trades after positive US economic data fueled hopes of global growth recovery however, gains were capped on caution ahead of third quarter earnings starting this week.

At 10AM, the 30-share Sensex of the Bombay Stock Exchange gained 21.20  points and traded at 19,808.56  and the 50-share Nifty rose 6.60 points and  at 6,022.15.

Global risk appetite was firm after data showed employers added workers in December at about the same pace as the prior month while US manufacturing expanded at a faster

Meanwhile Asian stocks traded mixed. Hong Kong's Hang Seng gained 0.12% to 23,358, Taiwan's Weighted index fell 0.6% to 7,759,  Singapore's Straits Times was up 0.25% to 3,233 . Also China's Shanghai Composite was trading up 0.06% to 2,278 while Japan's Nikkei declined 0.2% to 10,666.

On the domestic front, barring real-esate, capital goods, FMCG and Bankex, all sectors indices gained. Oil & gas, PSU, auto, healthcare, metals, consumer durables led gains on BSE.

Among key Sensex stocks,  laggards included Larsen & Toubro dropped 0.75%,  Infosys dropped 0.1%,  HUL  shed 0.7% and among banks, HDFC Bank, HDFC and ICICI Bank declined 0.3-0.6% on BSE.

The gainers included Maruti Suzuki, Mahindra & Mahindra and Hero MotoCorp rose 1-2%, ONGC rose 0.7%, Reliance Industries gained 0.5% , Bharti Airtel was up 0.69%,  Sun Pharma and Cipla gained 0.8%  while Tata Steel and Hindalco rose nearly 0.1% each on BSE.

Oil companies rallied on reports the petroleum ministry has proposed a gradual rise in diesel prices, by 1 rupee a litre every month over a 10-month period. HPCL , BPCL gained 2.5% while Indian Oil rose 1.5% on BSE.

The other key notable movers include, ING Vysya Bank which is trading higher by 3% at Rs 569, extending its Friday’s 6% rally after the lender said that the Reserve Bank of India (RBI) has given its approval for an increase in investment limit by FIIs (foreign institutional investors) under PIS (portfolio investment scheme) to 30% from 24% of the paid-up capital of the bank.

Indraprastha Gas Ltd (IGL) rose by 2.3% at Rs 258 on reports that the company has raised the CNG (compressed natural gas) price by 4% due to increase in overall input cost of natural gas.

The broader markets outperformed benchmark indices with mid-caps and small-caps gaining nearly 0.6-0.7% on BSE.

The market breadth was positive. Out of 1,901 stocks traded, 1,258 stocks gained compared to 546 declined on BSE.