Markets remain rangebound with negative bias

Index heavyweight Reliance Inds has dipped over 3%

Key share indices remained rangebound with a negative bias on selling pressure in index heavyweight Reliance Industries, IT and Metal shares.

At 1305 PM, the 30-share Sensex was at 16,838 down 59 points and the 50-share Nifty was at 5,104 down 16 points. The Sensex and the Nifty have reached an intra-day low of 16,811 and 5,095 levels, respectively so far.

On the global front, Asian stocks slipped and commodities fell broadly on Thursday after the Federal Reserve disappointed some investors with only a limited expansion of monetary stimulus and a survey showed China's vast factory sector slowed for an eighth month running. Strait Times, Hang Seng, Taiwan, Kospi and Shanghai have slipped between 1-2%.

Back home, BSE Oil and Gas, IT and Consumer Durable indices have slipped by almost 0.6-1.2%.  However, BSE FMCG, Realty, Power and Capital Goods indices have gained between 0.5-1%.

Index heavyweight Reliance Inds dipped over 3% after the Canadian oil and gas producer Niko Resources, which owns 10% stake in KG D6 block, said total proved plus probable natural gas reserves have fallen almost 51% to 377 billion cubic feet equivalent (bcfe) as it struggles with low reserves at its KG D6 block in India.

From the IT space, TCS, Wipro and Infosys have dropped between 0.3-3%.

Metal stocks such as Hindalco, Hindustan Zinc, Jindal Steel, Bhushan Steel, SAIL and Coal India are trading lower by 0.5-1.5% each on the back of disappointing macro-economic data from China.

Chinese manufacturing activity weakened further in June compared to the previous month as output and new export orders declined, according to the initial findings of a survey by HSBC.

Among Auto shares, M&M, Maruti Suzuki, Bajaj Auto and Tata Motors have slipped between 0.5-1.3%.

On the gaining side, shares of capital goods companies are in focus in an otherwise subdued market on reports that the government will impose a 5% import duty on power generation equipment.

“The Prime Minister's Office (PMO) on Wednesday directed the power ministry to float a fresh proposal on slapping higher duty on imported power gear, a move aimed at cushioning domestic firms including Bharat Heavy Electricals Ltd (BHEL) and Larsen and Toubro Ltd (L&T) against cheap imports, mainly from China,” the report suggests.

BHEL is the top Sensex gainer, up over 2%. L&T has spurted by almost 1%.
Other notable gainers include ONGC, Tata Power, Hero Moto, ITC, Sterlite, HUL, GAIL India and NTPC.

Among other shares, Allcargo Logistics has dipped 5% to Rs 130.65, after the board of logistics firm approved a share buyback proposal at a price not exceeding Rs 142.50 per share through open market mechanism.

Geometric Limited has soared 8% to Rs 74.60 on the back of huge volumes after IT consulting and services firm said that it formed partnership with DIPRO to tap the Japanese market.

The BSE mid-cap and small-cap indices are trading marginally positive, both gaining between 0.2-0.3%.