Markets trading in narrow range, L&T dips 2%

Markets are trading in an extremely narrow range bound with Sensex and Nifty oscillating between negative and positive zone.

Sensex and Nifty are hovering around 15900 and 4670 levels respectively.

By 1125, Sensex inched up 11 points at 15,888, and the Nifty was down 1 points at 4,765 levels.

Key Asian share indices continue to trade lower and the euro hovered near a two-month low as investors turned cautious at the prospect of mass euro zone sovereign ratings downgrades after the outcome of a "last chance" European Union summit failed to convince markets.

Shanghai Composite, Hang Seng, Nikkei, Straits Times, Seoul Composite and Taiwan slipped by 1% each.

Back home, counters like Capital Goods, Consumer Durable, Banks and PSU have plummeted by over 1% each. 

Capital Goods majors remain under pressure post yesterday's disappointing IIP data. The capital goods segment contracted sharply by 25.% in October. L&T has plunged 1.7%. However, BHEL is witnessing some buying demand, gaining by 0.5%.

Centre for Monitoring Indian Economy has cut India FY12 growth forecast to 7.1% versus 7.8%.

Bank shares have remained weak on worries of lower credit offtake on the back of growth slowdown. ICICI Bank is down 1.2% and SBI down 0.4%. HDFC Bank has slipped 0.3%.

Index heavyweights Infosys and ONGC have dropped 0.5-1%.

However, Reliance Industries has recovered after initial fall; it is trading up 0.4%.

Healthcare, Auto and FMCG sectors are quite supportive. Top gainers in Sensex 30 are like Bharti Airtel, Sun Pharma, Hindalco, ITC and Cipla have advanced 0.5-1%.

November cement output has come in at 13.98 mt vs 11.91 mt (YoY).

Rupee has breached 53 per dollar mark. It is trading at an all time low at 53.17.

Meanwhile, BSE Midcap index has slipped by 0.76% and BSE Smallcap index has dropped 0.63%.

Gati has zoomed 4% after the board has opened FCCB issue and plans to raise up to $22 million.

Essar group stocks have hit 52 week low after the group promoters Anshuman and Ravi Ruia were among the five corporate honchos who were accused by CBI in its third charge sheet filed in a Delhi court arising out of investigations in the 2G scam. 

The market breadth in BSE remains unhealthy with 734 shares advancing and 1320 shares declining.