Markets remain choppy; BSE Smallcap index up 1%

HDFC, Hindalco, M&M, Tata Steel and Tata Power have declined between 1-2%

Markets continue to remain volatile in a narrow range with the Nifty index hovering around 7,530 mark.

By 12:10, the Sensex gained by 2 points at 25,192 and the Nifty slipped by 2 points at 7,531 mark.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices have gained between 0.5-1%.

The market breadth in BSE remains firm 1,566 shares advancing and 1,015 shares declining.

Adds Ranak Merchant, Technical Analyst - Strategies at Sushil Financial Services,” As Nifty (spot) hit 7700, the momentum with which new life highs were tested, appeared to be slowing and thus a quick correction was on the cards. Yesterday's session saw the benchmark index slip below multiple bottom supports of 7580. From current levels 7350-7400 appears to be a good support zone and a correction till this zone would prove healthy for markets. With crude prices rising and INR depreciating, keep an eye on these two for signs of reversal.”

ASIAN MARKETS

Asian shares struck a cautious tone on Tuesday as the double-whammy of a deepening conflict in Iraq and a gas dispute between Ukraine and Russia sapped investors' appetite for risk.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 percent. Japan's Nikkei bucked the trend with rise of a 0.5 percent, though it was still down on the week so far.

Oil prices remained near nine-month highs after militants from the Islamic State of Iraq and the Levant seized a large swathe of northern Iraq and threatened to capture a key oil refinery.

INDIAN MARKETS

Foreign portfolio investors (FPIs) sold shares worth a net Rs 194.10 crore on Monday, 16 June 2014, as per provisional data from the stock exchanges.

The rupee falls as much as 0.65% to 60.55, its lowest level since April 29, as escalating tensions in Iraq continue to fuel concerns over inflation while subdued equity markets also weighed.

SECTORAL INDICES

BSE IT and Oil & Gas indices have gained by nearly 1% each. However, BSE Realty and Metal indices have declined by almost 1% each.

Shares of information technology (IT) companies are trading higher in fourth straight trading sessions as the Indian rupee weakened against the dollar.

MOVERS & SHAKERS

Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, MphasiS, Hexaware Technologies, Mindtree and Tech Mahindra are up 1-2% in early morning deals on the Bombay Stock Exchange (BSE).

The main gainers on the Sensex are ONGC, Bharti Airtel, Maruti Suzuki, GAIL, Axis Bank, Wipro and TCS.

On the losing side, HDFC, Hindalco, M&M, Tata Steel and Tata Power have declined between 1-2%.

Among other shares, Ricoh India has tanked 20% to Rs 173 on BSE after the failure of delisting offer announced by Ricoh Asia Pacific Pte, the promoter of the company.

Fulford (India) is locked in down circuit of 5% at Rs 1,584 on BSE after Dashtag, the promoter of the company said it may consider other strategic alternatives in relation to its ownership of shares in the company, if the  delisting offer not be successful.