Markets remain rangebound

Key share indices remain cautious ahead of the mid-quarter Monetary Policy review to be announced by the RBI tomorrow. Markets remain volatile within a narrow range, oscillating between negative and positive terrain.

By 1120 Sensex was down 21 points at 19,296 and the 50-share Nifty was down 7 points at 5,873.

On the global front, Asian markets are trading mixed amid profit-taking in certain markets after last week's gain. China's stocks, however, gained hen the Politburo Central Committee of the Communist Party of China released a statement that said it would maintain steady economic policies in 2013 while Japanese markets touched 8-1/2 month high after LDP party that backs more economic stimulus returned to power with a landslide election victory on Sunday.

China's Shanghai Composite gained 0.5% to 2,162, Hong Kong's Hang Seng was down 0.4% to 22,541, Singapore's Straits Times declined 0.2% to 3,161 while Japan's Nikkei rose 1.4% to 9,876.

The MSCI Asia Pacific index outside Japan fell 0.6% to 896.

Back home, the rupee today fell by 10 paise to trade at 54.58 against the US dollar in early trade, extending its slide for the fourth day, at the Interbank Foreign Exchange as the American currency firmed against euro and other currencies in the overseas market.

On the sectoral front, BSE Auto, Realty, Healthcare and Realty indices have surged by 1% each. However, BSE TECk, IT, FMCG and Consumer Durable indices have declined by nearly 1% each.

Rate sensitive shares firmed on hopes of rate cut by the central bank on Tuesday. The main gainers on the Sensex at this hour include Hindalco, Maruti Suzuki, M&M, Tata Power, Bajaj Auto, ONGC, Tata Motors, ICICI Bank and SBI.

Nomura downgraded Bajaj Auto to 'neutral' from 'buy', saying the Indian auto maker's valuations of 15.5 times fiscal 2014 earnings have priced in expectations of improving market share.

According to Navneet Daga, Derivative Analyst, KR Choksey Securities, “On Rate sensitive its very stock specific action visible on autos huge longs are visible on counters like Tata Motors, Bajaj Auto both looking very interesting from short term perspective on buy side. While in banks no major mixed activity is visible but strength is seen on counters like SBI, ICICI Bank ahead of policy event.”

On the losing side, Bharti Airtel, Wipro, TCS, HDFC Bank and BHEL have declined between 1-3%.

Among other shares, Kolte-Patil Developers has rallied over 17% at Rs 121, extending its Friday’s 15% surge on back of heavy volumes after the Union Cabinet on Thursday cleared a land acquisition bill.

The broader indices have outperformed as compared to benchmarks – BSE Midcap and Smallcap indices are up 1% each.

The market breadth in BSE remains healthy with 1,387 advancing and 926 shares declining.