Nifty hovers around 6,500, BSE Metal index up 3%

Benchmark indices are trading in a narrow range with positive bias.  At 13:20 PM, the 30-share Sensex was up 18 points at 21,759 and 50-share Nifty was up 6 points at 6,489.

Adds Devangshu Datta, Technical Analyst and market expert, “Likely to range trade 6500-6535 (both futures prices). Breakouts / breakdowns look unlikely but could go till 6465 or 6600. Advance-decline ratio is positive.”

On the global front, Asian markets found their footing on Friday after Wall Street shook off concerns about Federal Reserve policy, while a spike in US bond yields kept the dollar underpinned near three-week highs.

After falling sharply on Thursday, regional stocks battled to regain some of the losses. The Australian market edged up 0.7% while MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5%.

Hong Kong and China stocks also rebounded, despite growing concerns about fallout from China's economic slowdown and a further slide in the yuan to 13-month lows.

Investors found some comfort in Wall Street's ability to bounce as the S&P 500 closed up 0.6% and the Dow 0.67%. Japan's Nikkei was not able to share the relief because markets were closed for a holiday.

Back home, the rupee is trading higher at 61.03/05 vs previous close of 61.34/35, tracking strength in equities.

Foreign institutional investors (FIIs) bought shares worth a net Rs 722.02 crore on Thursday, 20 March 2014, as per provisional data from the stock exchanges.

On the sectoral front, BSE Metal index has spurted by nearly 3% followed by counters like Realty, Consumer Durables, IT, Banks and Power, all gaining by 1% each. However, BSE Oil & Gas index has gained by over 1%.

Wipro has moved higher by 5% to Rs 577, extending its past two days gain, on back of heavy volumes on the bourses. The stock opened at Rs 558 and touched a low of Rs 554 on the BSE.

From the metal space, Tata Steel, Sesa Sterlite, Hindustan Zinc, Jindal Steel & Power and Hindalco have gained between 2-4%.

Other notable gainers are TCS, SBI, BHEL, Tata Motors, Tata Power and HUL.

On the losing side, Reliance Inds, ONGC, Sun Pharma, NTPC and Hero Moto have declined between 1-2%.

Among other shares, Mercator has soared to 13% to Rs 23.80, also its 52-week high on the BSE, after the company said it has acquired one 1992 built very large gas carrier (VLGC). The company did not disclose the price at which it was bought.

TVS Motor Company is trading higher by 5% at Rs 97.80, extending its over 8% rally in past one week, on back of heavy volumes on the bourses.

The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices are up nearly 1% each.

The market breadth in BSE remains positive with 1,437 shares advancing and 1,121 shares declining.