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Benchmark indices are trading in a narrow range with positive bias led by buying among FMCG and financial shares.
By 11:35, the Sensex was up 40 points at 18,721 and the Nifty gained 11 points to 5,645.
On the global front, Asian shares eased and the euro wobbled on Tuesday as investors worried about potential risks from the Cyprus bailout scheme, after initial rallies on the last-minute rescue provided opportunities to book some profit.
Bach home, the rupee today weakened by 17 paise to 54.34 against the US dollar on the Interbank Foreign Exchange market in early trade, due to month-end demand for the American currency from importers.
On the sectoral front, BSE FMCG index has surged over 1% followed by counters like Consumer Durable, Banks, Healthcare, IT and PSU, all gaining marginally. However, BSE Realty, Oil & gas and Capital Goods indices have declined between 1-2%.
The main gainers on the Sensex at this hour include Coal India, Bharti Airtel, HUL, ITC and HDFC, all gaining between 1-2%.
GAIL is the top Sensex loser, down over 3% on reports that Tamil Nadu government has blocked work on Kochi-Bengaluru gas pipeline.
Other notable losers are RIL, Tata Steel, L&T and Tata Power, all falling between 1-3%.
Shares of select public sector undertaking (PSU) banks have fallen up to 4% in early noon deals after global rating agency Moody’s downgraded its Standalone Bank Financial Strength Rating (BFSR) for three public sector banks on concerns of falling asset quality, pressure on profitability and capital generation.
Among the individual stocks, Syndicate Bank is down almost 4% at Rs 108 on BSE, while Indian Overseas Bank and Oriental Bank of Commerce are down by 3% each at Rs 64 and Rs 232 respectively.
Balmer Lawrie & Company is trading higher by 3% to Rs 615 on the Bombay Stock Exchange (BSE) ahead of its board meeting today to consider a maiden bonus issue proposal.
Shares of Pantaloon Retail, the largest retailer, and construction major L&T declined in the morning trade after the annoncement that L&T General Insurance will be merged with Future Generali Insurance.
Pantaloon Retail shares declined 1.7% and were trading at Rs 143.60 while L&T shares declined 1.3% to Rs 1,349.75. However, L&T Finance Holdings shares rose 2.45% and were trading at Rs 73.35 at 11.15 am.
The market breadth in BSE remains almost flat.
