Markets rangebound; HDFC, ITC down 1%

Index heavyweights ITC, financials including HDFC twins, ICICI Bank and RIL are dragging the Sensex lower by nearly 50 points.

Markets are trading in a narrow range due to absence of any fresh triggers along with profit-booking by funds and retail investors after recent gains.

By 1. 15 PM, the Sensex is lower by 50 points at 27,449 and the Nifty dipped by 17 points at 8,266 levels.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up over 0.6% and 1% each.

The market breadth in BSE remains positive with 1,573 shares advancing and 932 shares declining.

In the first eight months of this financial year (April-December), the central government’s fiscal deficit totalled 98.9 per cent of the Budget Estimate (BE) for all of 2014-15, despite an easing subsidy burden due to a plunge in crude oil prices.

Official data, issued on Wednesday, showed the deficit stood at Rs 5.25 lakh-crore, against a full-year’s BE of Rs 5.3 lakh-crore. For the corresponding period last year, the deficit was 93.9 per cent of the full-year BE.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 481.08 crore yesterday, as per provisional data.

Globally, the Sensex was the second best performing index among major nations after China's benchmark share index Shanghai Composite rising nearly 53% in 2014. Foreign institutional investors were net buyers in Indian equities to the tune of $16.07 billion in 2014 till December 30.

Rupee:

The rupee is trading at 63.33 against the US dollar on the first trading day of the New Year due to buying of American currency by banks and importers.

Key Stocks:

On the sectoral front, BSE FMCG is the top losing index down 0.3% followed by BSE Oil & Gas index and Bankex down 0.2%. However, BSE Consumer Durables, Metal and Capital Goods indices are trading 0.5% higher.

Index heavyweights ITC, financials including HDFC twins, ICICI Bank and RIL are dragging the 30-share Sensex lower by nearly 50 points.

Metal shares are trading higher by over 2.5% on the Bombay Stock Exchange (BSE) after growth in China's services sector picked up slightly in December. China is the world's largest consumer of steel, copper and aluminum. Sesa Sterlite has gained over 1.6% while Hindalco and Tata Steel have gained around 0.4% and 0.7% each.

Meanwhile, country core sector growth touched a five month high at 6.7% in the month of November, 2014 compared to 6.3% growth in October, 2014. The Steel sector, one of the eight components considered to be core sectors, slowed further to 1.3%.

L&T has gained around 0.3%. L&T Infrastructure Development Projects Ltd ( L&T IDPL) has begun construction of a Rs 1293 crore road widening project in Odisha, more than a year after bagging the contract for it. BHEL is up 1%.

Concerns over global crude oil prices worsened after Energy Information Administration of US presented a gloomy outlook for the sector citing glut at US storage hub in Cushing, Oklahoma. Global crude prices fell to a five-and-half year low. RIL and GAIL have lost over 0.5% each while ONGC is gaining around 0.2%.

Maruti Suzuki is up 0.5%. Country's largest car-maker Maruti Suzuki India (MSI) today reported a 20.8% increase in total sales in December at 1,09,791 units. TSTS Motors, Bajaj Auto have gained between 0.2-0.4%.

Telecom companies gain on news of spectrum pricing. Bharti Airtel has gained around 1.2%.

Among other shares, Jet Airways and SpiceJet, are trading higher after Airline Turbine Fuel (ATF) prices were cut by 12.5% in Delhi.