Markets remain subdued, ITC weighs

Key share indices continue to remain range bound with negative bias weighed down selling pressure in ITC. At 1300 hrs, the 30-share Sensex was down 41 points at 17,687 and the 50-share Nifty was down 10 points at 5,370.

Meanwhile, the rupee dropped 35 paise to 56 per dollar after a gap of two weeks on persistent demand for the American currency from banks and importers.

On the global front, Asian shares inched higher on Thursday but gains were limited as investors waited for more clues over the timing and extent of any further stimulus to tackle the euro zone's debt crisis and support global growth. Nikkei, Strait Times, Taiwan and Kospi have gained between 0.1-2%. However, Hang Seng and Shanghai are trading marginally lower.

Back home, BSE FMCG index has dropped by nearly 2% followed by counters like Metal, Consumer Durable, IT, Banks and PSU, all declining between 0.2-1.5%. However, BSE Auto, Capital Goods and Healthcare indices have gained between 0.5-1%.

ITC is the top Sensex loser, down over 3% on concerns about regulatory action at home after reports that Australian court has approved logo ban on tobacco packs from December 1. “Australia called on the world to match its tough new anti-tobacco marketing laws that will ban logos on cigarette packs, after its highest court on Wednesday dismissed a challenge from global manufacturers,” the Reuters report suggests. HUL is down by nearly 1%.

From the Metal space, Sterlite, Hindalco, Tata Steel, JSPL and Coal India have slipped between 1-3%.

Software majors like Wipro, TCS and Infosys have slipped between 1-2%.

Other notable losers include GAIL India, NTPC, ONGC, Maruti Suzuki and ICICI Bank.

On the gaining side, index heavyweight RIL has gained over 1%. Other notable gainers include Cipla, Hero Moto, M&M, L&T and Tata Motors.

Among individual shares, SKS Microfinance has rallied 6.4% at Rs 115, its highest level since April 23 on back of huge volumes.

Meanwhile, BSE Midcap index has gained 0.3% whereas BSE Smallcap index is up 0.35%.

The market breadth in BSE remains almost flat with 1,229 shares advancing and 1,271 shares declining.