Markets remain rangebound ahead of expiry

Key share indices continue to remain volatile in a narrow range with the Sensex and the Nifty oscillating between negative and positive terrain.

By 11:55, the 30-share Sensex was down 18 points at 17,661 and the 50-share Nifty was down 8 points at 5,342.

On the global front, riskier assets from stocks and commodities to the Australian dollar fell on Tuesday on investor caution ahead of a gathering of central bankers and economists in Wyoming later in the week which could shed some light on further stimulus plans. Asian markets are trading on a mixed note.

Back home, India's economy is expected to have grown 5.3 percent in the April-June quarter, unchanged from January-March, according to a Reuters poll of 38 economists.

BNP Paribas downgrades Indian stocks to "neutral" from "overweight", saying policy reforms may be delayed until after general elections in 2014 due to a deadlocked government and high inflation.

Meanwhile, the rupee recovered some of the initial losses today but was still down 8 paise at 55.77 against the dollar on demand for the American currency from banks and importers.

On the sectoral front, BSE Metal index has plummeted by almost 2% followed by counters like Consumer Durable, Capital Goods, Auto, Banks, PSU, Oil & Gas, Realty and Healthcare, all declining between 0.1-1%. However, BSE IT index has surged bgy almost 1%.

From the Metal space, Jindal Steel, Tata Steel, Sterlite Inds, Hindalco and Coal India have slipped between 1-4% after the recent data showed a 5.4% fall in profit from China's major industrial enterprises for July compared to the year-ago period.

Capital Goods majors like L&T and BHEL have slipped by nearly 1%. Larsen and Toubro has decided to sell its entire stake in L&T Plastic Machinery Ltd to Japan’s Toshiba Machine Co Ltd for an undisclosed sum, in line with the company’s strategy to realign portfolios and focus on core business units.

Banking shares like HDFC Bank and ICICI Bank have declined between 0.2-1%.

Other notable losers include Bajaj Auto, Tata Motors, Bharti Airtel, RIL, Hero Moto, Cipla and ONGC.

On the winning side, Tata Power is the top Sensex gainer, up nearly 3%. Other notable gainers include Infosys, TCS, NTPC, SBI, Sun Pharma and Wipro.

Among individual shares, Federal Bank is trading lower by 3% at Rs 404 on back of huge block deal on the Bombay Stock Exchange (BSE).

IL&FS Engineering and Construction Company Ltd has won three contracts worth Rs 331 crore from West Bengal State Electricity Distribution Company Ltd. The projects are to be completed simultaneously in 24 months, IL&FS Engineering said in a filing with the Bombay Stock Exchange today.

Dishman Pharmaceuticals and Chemicals is trading higher by 4% at Rs 105, its highest level since April 2011 on the Bombay Stock Exchange.

Meanwhile, Meanwhile, BSE Midcap and BSE Smallcap indices have slumped by almost 1% each.

The market breadth in BSE remains unhealthy with 1,531 shares declining and 764 shares advancing.