Markets remain rangebound, Bharti Airtel up 2%

Gains in RIL and private bank shares helped offset losses in FMCG majors

Markets continue to trade in the positive territory with the Sensex up 42 points at 21,293 and the Nifty was up 12 points at 6,326.  

In the broader markets, the mid and smallcap indices were up 0.3% each.

The ones helping the indices stay in the green in noon deals were Reliance Industries, Sun Pharma and Bharti Airtel.
___________________
(Updated at 1300 hrs)

Markets remained range bound in late morning trades as gains in index heavyweight Reliance Industries and private bank shares helped offset losses in FMCG majors.

At 11:30AM, the 30-share Sensex was up 35 points at 21,286 and the 50-share Nifty was up 9 points at 6,323.

The Indian rupee was trading lower due to month end dollar demand from importers. Bearish sentiments in equity markets also contributed to the weakness. The rupee was trading at Rs 61.91 compared with previous close of Rs 61.88 per dollar. The rupee is seen weakening further during the day, said currency dealers.

Asian stocks remained subdued on Wednesday amid worries that the US Fed may further trim its monetary stimulus and ahead of central bank meetings in Thailand and Japan. Japanese central bank, The Bank of Japan, is widely expected to keep its policy rates on hold on Wednesday. The Nikkei was up 0.3%, Shanghai Composite gained 1.8% and Hang Seng was up 0.2% while Straits Times was trading flat with negative bias.

Bankex, Metal and Power indices were the top gainers among the sectoral indices on the BSE while FMCG was the top loser down 1%.

Shares of private banking majors such as ICICI Bank, HDFC Bank and Axis Bank were up 0.5-1% each on expectations that the RBI would continue to maintain status quo on key policy rates at its meeting scheduled on Tuesday.

Reliance Industries witnessed buying at lower levels after the recent correction. The index heavyweight was up 0.5%.

Bharti Airtel was up nearly 2% on talk that the telecom major plans to sell its Africa tower business country-wise since it was not able to get a buyer for the entire business. The company plans to sell its Africa tower business starting with Nigeria.

Other gainers include, Tata Steel, Tata Motors and TCS.

FMCG majors ITC and Hindustan Unilever witnessed profit taking after recent gains. ITC and Hindustan Unilever were down 1-1.5% each.

Engineering major Larsen & Toubro was down 0.6% ahead of its third quarter earnings today.

Among other shares, Shares of Tilaknagar Industries were up over 3% at Rs 55 on talk that Kishore Chhabria-led Allied Blenders and Distillers (ABD) is looking to acquire majority stake in the company. To fund the acquisition, ABD has started raising $200 million.

The broader markets gave up some of their early gains and BSE Mid-cap and Small-cap indices were up 0.3% each.

Market breadth was marginally strong with 1,121 gainers and 932 losers on the BSE.