Markets trading flat amid voltaility , FMCG shares rebound

Markets are trading flat amid volatility in noon trades on Thursday after gains in financials and FMCG shares helped offset losses in oil and gas shares.

At 1PM, the 30-share Sensex was up 53 points at 19,399 after hitting a intra-day high/low of 19,569/19,170 and the 50-share Nifty was up 2 points at 5,744 after touching a high/low of 5,808/5,677.

The RBI intervened in the foreign exchange market on Thursday to stop the rupee's slide toward a record low as its defence of the currency, built around draining cash from money markets, came under rising pressure.   With the Reserve Bank of India struggling to hold the line, investors are sceptical whether the government will take swift, credible action to reduce a gaping current account deficit despite Finance Minister P. Chidambaram's assurances. The rupee was down 43 paise at Rs 60.83 against the US dollar.

Asian markets continue to trade firm on better-than-expected manufacturing data from China. Shanghai Composite, Hang Seng, Nikkei and Straits Times were up 0.5-2.5% each.

Stocks in Europe were trading with marginal gains in early trades. The CAC, DAX and FTSE were up 0.3-0.6% each.

BSE Realty, Oil and Gas, Consumer Durables and Auto indices were the top losers while FMCG, Bankex, IT and Healthcare were the gainers.

HDFC Bank and HDFC were among the top Sensex gainers up over 2.3% each. In the FMCG pack, HUL and ITC rebounded after the recent correction and were up 1-3.5% each.

IT majors firmed up on the back of a weakening rupee. TCS and Infosys was up 0.3% each.

Among other shares, Financial Technologies (India) (FTIL) has tanked 60% to Rs 218, its lowest level since January 2005 on BSE, on back of heavy volumes after National Spot Exchange Limited (NSEL), arm of FTIL, said that it has suspended trading of contracts, other than e-Series contracts till further notice.

Shares of OnMObile Global were up 6% at Rs 21 after the company late Wednesday reported robust first quarter earnings helped by forex gains.

Shares of IRB Infrastructure were down 22% at Rs 56.30 after the company decided to withdraw from the Rs 9,360 crore Mumbai Trans Harbour Link (MTHL) citing bad experience on some other infrastructure projects in the state.

In the broader market, BSE Mid-cap index was down 1.4% and BSE Small-cap index was down 0.9%.

Market breadth was weak with 1,255 losers and 656 gainers on the BSE.