Markets remain range-bound; Midcaps underperform

Benchmark indices continued to trade flat during the afternoon trade as Asian markets pared gains after inching towards their 19-monrh highs. Caution bled into the Asian stocks ahead of testimony by the head of the Federal Reserve, which could highlight the likelihood of two or more U.S. interest rate hikes this year.
 
January’s WPI inflation in January rising to 5.25% against 3.39% in previous month also affected the sentiment. Yesterday, however, retail inflation declined to 3.17% against 3.41% in Dec due to low demand after demonetisation.
 
Nifty 50 continued to stay below 8,800 levels as gains in energy stocks were offset by losses in financial and auto stocks.

 

At 12:58 pm, the S&P BSE Sensex was trading at 28,323, down 29 points, while the broader Nifty50 was ruling at 8,791, down 14 points.
 
In the broader market, the BSE Midcap fell 0.7%, while BSE Smallcap slipped 0.5%.
 
About 1,584 shares declined against 997 advancing shares on the BSE. 164 shares remained unchanged.
 
Reliance Industries, GAIL, ONGC and Adani Ports were the top gainers on BSE Sensex while Hero MotoCorp, HUL, Axis Bank and Coal India were the top losers.
 
Shares of Tamil Nadu - based television channels, Sun TV and Raj Television Network (RAJ TV) spiked up to 13%, after the Supreme Court (SC) quashed Karnataka High Court verdict that acquitted AIADMK General Secretary, Sasikala Natarajan, in the disproportionate assets case.

 
Raj Television Network surged as much as 13% to Rs 73, while Sun TV rose 4% to Rs 741 on the Bombay Stock Exchange (BSE).
 
BSE Metal index, which rose over 15% in January was the biggest sectoral loser, down 1.7% dragged by NMDC, Hind Zinc and JSW Steel.
 
Oil stocks rallied today, with Reliance Industries, ONGC and GAIL rising 1.5-2%. Adani Ports climbed 1.2% ahead of Q3 earnings.
 
HUL lost 1.5% despite Bank of America Merrill Lynch maintained a buy call on the stock, with target price at Rs 1,000.
 
The Nifty PSU Bank index fell 1%. It lost about 3% in the previous session.

 
HPCL fell as much as 3.5% in their biggest intraday percent drop since Dec. 15, 2016 after Dec-quarter average gross refining margin fell to $5.57 per barrel.
 
Meanwhile, Nikkei slipped 0.7% as Toshiba shed more than 8% under the weight of sell orders. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%, trying for its fifth straight session of gains and stocks in Shanghai were barely changed on the day.