Mkts trade in tight range, broader markets underperform

TCS is the top Sensex gainer, up nearly 3%, Wipro adds 1%, Infy rises marginally

Key share indices continue to remain volatile in a narrow range, oscillating between negative and positive terrain.

By 14:20, the 30-share Sensex was up 6 points at 19,586 and the 50-share Nifty was down 9 points at 5,930.

On the global front, the euro hovered near a two-week low and European shares rose on Friday after the European Central Bank rekindled expectations that it could again take the knife to interest rates.

Asian markets traded mixed too as investors preferred to remain on the sidelines with key regional markets such as Hang Seng and Shanghai shut next week.

Chinese markets are closed next week for the Lunar New Year holiday, while Hong Kong will resume trading on Thursday.  .

Hong Kong's Hang Seng rose 0.18% to 23,218, Singapore's Straits Times gained 0.34% to 3,273, China’s Shanghai Composite added 0.57% to 2,442 and Japan's Nikkei fell 1.8% to 11,153.
    
Back home, BSE IT, Capital Goods and TECk indices have surged by almost 1% each. However, BSE FMCG, Metal, Healthcare and PSU indices have declined by 1% each.

Software shares have gained tracking weakness in the Indian rupee. The rupee today depreciated by 22 paise to 53.44 against the dollar. Forex dealers said strong foreign fund flows and dollar's gain against other currencies overseas, capped rupee's fall to some extent. TCS is the top Sensex gainer, up nearly 3%. Wipro has gained by 1% whereas Infosys is marginally up.

According to Nandish Patel, Derivative Analyst, Sharekhan, “Good amount of long positions were accumulated around levels of 1350 and a turn around in USDINR further supported TCS inch closer towards its all time high. We feel that the stock has room for further upside and a call option can be bought with a dip in the market.”

Capital Goods majors are trading higher on renewed buying. BHEL and L&T have surged by 2% each.

Power generation major NTPC has gained over 1% after strong investor response to the divestment of Government of India's 9.5% stake in the company through the stock exchanges mechanism on Thursday.

Other notable gainers include HDFC Bank, Bharti Airtel, Tata Steel, Sun Pharma and Tata Motors.

On the losing side, Pharmaceutical major Cipla extended Thursday's losses triggered by Managing Director Dr. Y K Hamied announcing his resignation at the time of the announcement of the company's Q3 December 2012. Cipla slipped over 3%.

FMCG majors ITC and HUL have declined by 1% each.

Other prominent losers are Sterlite, CIL, DRL, Maruti Suzuki and SBI.

Among other shares, Elantas Beck was locked in lower circuit of 20% at Rs 829, also its 52-week low on BSE, after its German promoter plans to cut stake in the company from the current 88.55% to comply with SEBI norms on minimum public share holding requirements.

MRF has gained over 2% to Rs 13,430 in afternoon trades after the company has posted a net profit of Rs. 180 crore for the quarter ended December 31, 2012 as compared to Rs. 113 crore for the quarter ended December 31, 2011.

Broader markets continue to underperform the benchmark indices. BSE Midcap and Smallcap indices are down between 0.3-0.5%.

The overall market breadth in BSE remains weak as 1,602 stocks are declining while 1,065 are advancing.