Benchmark shares indices are trading in a narrow range with Sensex and Nifty swinging between negative and positive zone ahead of the Dec F&O expiry today.
By 10:50 am, the S&P BSE Sensex was higher by 30 points at 25,990 and Nifty50 gained 9 points at 7,905.
In the currency front, the rupee weakened 6 paise to quote at 66.45 against the dollar in early trade today on increased month-end demand for the American currency from importers and banks.
The top gainers from the Sensex pack are HDFC, GAIL, HDFC Bank, Infosys and Coal India. However, ONGC, Lupin, L&T, ITC and Tata Motors are down 0.5%-2%.
Among other shares, Mukand has surged almost 20% to Rs 55.80 on the BSE after a huge block deal executed on the counter.
Shares of Cadila Healthcare have tanked 15% to Rs 327 on the NSE after the company received a warning letter from the US Food and Drug Administration (USFDA) relating to its Moraiya formulation facility and Ahmedabad API facility.
Markets are trading flat in early trades as investors have turned cautious ahead of F&O expiry for the month of December.
Traders will roll over their positions in the futures & options (F&O) segment from the near month December 2015 series to January 2016 series today.
By 9:30 am, the S&P BSE Sensex was higher by 20 points at 25,980 and Nifty50 gained 6 points at 7,902. The broader markets continue to outperform- BSE Midcap and Smallcap indices are up 0.3% each.
Adds Rahul Shah, VP- Equity Advisory, Motilal Oswal Securities, “While the broader market has been consolidating so far in 2015, I am hopeful that the negative traction in earnings growth that has seen in H2FY15 may start reversing sooner or later. We continue to be enthused by the improvement in several macro factors including global raw material price, low inflation & a much improved fiscal situation. The improvement in macro-environment will start reflecting in corporate earnings which ultimately decides market movement. Another key trigger for the market remains the Benchmark inters rates. We see Indian equities will give good 15-20 CAGR for next coming five years.”
Besides, foreign portfolio investors (FPIs) bought shares worth a net Rs 152.20 crore yesterday as per provisional data released by the stock exchanges.
In the overseas markets, Asian share markets looked set to end a rough, volatile year on a subdued note on Thursday as a renewed slide in oil prices sapped sentiment, a baleful trend that shows every sign of lingering into 2016.
Holidays limited the damage in Asian markets on Thursday with many either closed or shutting early. Japan was one of the markets off on Thursday, though it was also one of the better performers this year with gains of almost 10% for the TOPIX.
Australia's main index slipped 0.3%, widening losses for 2015 to 1.7%. China's Shanghai Composite index and CSI300 were both little changed on Thursday.
Losses in energy stocks weighed on Wall Street on Wednesday, where the Dow ended down 0.66%. The S&P 500 fell 0.72% and the Nasdaq 0.82%.
Back home, Coal India, Infosys, Dr Reddy’s Labs, M&M and HDFC are up 0.4%-1%.
Slowdown in the steel industry has hit coal block auctions, with the coal ministry cancelling the fourth round till market conditions improve. Shares of Coal India are up almost 1%.
Dr Reddy's Laboratories Limited today announced the re-launch of its Esomeprazole Magnesium Delayed-Release Capsules, a therapeutic equivalent generic version of Nexium, in the US market. Shares of the drug maker have gained around 1%.
Meanwhile, the National Stock Exchange (NSE) will introduce Jet Airways India, Godrej Consumer Products, Container Corporation of India and Torrent Pharmaceuticals in the future and option segment from Friday.
Jet Airways India, Godrej Consumer Products, Container Corporation of India and Torrent Pharmaceuticals are trading higher between 2%-3%.
Shares of PSU OMCs like BPCL, HPCL, IOC and Oil India are trading marginally positive as crude oil prices dropped yesterday.
Crude prices fell more than 3% on Wednesday, with Brent sliding towards 11-year lows, after an unusual build in US stockpiles and signs Saudi Arabia will keep adding to the global oil glut.
On the losing side, ONGC, HUL, Axis Bank, ICICI Bank and Adani Ports are down 0.4%-1%.
With Reuters input