Markets remain rangebound ahead of expiry

Key share indices remain range bound with negative bias ahead of the expiry of July futures and options series on selling pressure in Capital Goods, Realty, PSU and Metal shares.

At 11:30, the Sensex was down 18 points at 16,828 and the Nifty declined 6 points at 5,104 levels. The Sensex and the Nifty have reached an intra-day low of 16,800 levels and 5,094 mark, respectively so far.

The rupee today rose by 13 paise to Rs 56.03 against the dollar in early trade, snapping four sessions of losses, on the Interbank Foreign Exchange, as the American unit weakened against euro and other currencies overseas.

On the international front, Asian shares and the euro steadied on Thursday after bouncing from recent lows as hopes grew for more US stimulus to support growth and new European policy measures to keep the euro zone's debt crisis from deepening further, but sentiment was fragile.

The euro rose against the dollar for the first time in six days on Wednesday, while data showing new US home sales posted their biggest drop in over a year in June and prices resumed their downward trend reinforced views the Federal Reserve would consider more easing steps to underpin a delicate US recovery. Nikei, Strait Times, Hang Seng, Kospi and Shanghai have gained between 0.1-1%.

Back home, BSE Capital Goods, PSU, Realty and Metal indices have slipped by almost 1% each. However, BSE Healthcare index has surged by nearly 1%.

From the Capital Goods space, L&T has plummeted by over 1%. BHEL has dropped by 0.5% ahead of its Q1 result today.

Metal shares like Sterlite, Coal India, Tata Steel and Hindalco have melted between 0.5-1%.

Technology stocks have fallen on weak economic data in the US. Infosys, Wipro and TCS have dipped between 0.2-1%.

Tata Power is the top Sensex loser, down over 1%. Other notable losers include Tata Motors, ONGC, HDFC Bank, SBI, HUL and RIL.

On the gaining side, Sun Pharma is the top Sensex gainer, up nearly 3%. Other Pharma shares like Dr Reddy’s Lab and Cipla have gained over 1%.

ITC has gained by almost 1% ahead of its Q1 result today. Other frontline winners are Bajaj Auto, Maruti Suzuki, ICICI Bank and JSPL.

Among individual shares, Jubilant FoodWorks has dipped 4% at Rs 1,142 after reporting a decline in operating margins and the same-store sales for the first quarter end June 2012.

Atul Limited has rallied 6% to Rs 280 after reporting a net profit of Rs 37.48 crore for the first quarter ended June 2012 as compared to the previous corresponding period, on the back of higher sales and foreign exchange gains.

Tips Industries has rallied 9% to Rs 64.20 after the board of Taurani Brothers promoted movies and entertainment Company approved the buyback of company’s shares at a maximum price of Rs 90 per share through open market purchase.

The broader indices have extended yesterday’s losses and continue to underperform– BSE Midcap and Smallcap indices are down 1% each.

The market breadth in BSE remains unhealthy with 1,440 declining and 798 shares advancing.