Markets remain range bound

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

At 11:25 AM, the 30-share Sensex was at 17,761 down 6 points and the 50-share Nifty was at 5,358 down 5 points. 

On the global front, the Asian markets are also trading on a weak note in trades today ahead of a key German ruling on the euro zone's bailout funds and the U.S. Federal Reserve's policy decision, repositioning from last week's rally spurred by heightened speculation for more stimulus globally. Nikkei, Hang Seng and Shanghai are down by 1% each.

Back home, the rupee declined by 5 paise to 55.49 against the dollar in early trade today, extending yesterday's losses, on the Interbank Foreign Exchange on continued demand for the American currency.

On the sectoral front, BSE Metal index has plunged by almost 2% followed by counters like Auto, Banks, Capital Goods, Realty and TECk, all declining marginally. However, BSE Oil & Gas index is up by nearly 1% followed by counters like Healthcare, PSU, Consumer Durable, Power, FMCG and IT, all gaining marginally.

From the Metals pace, Sterlite is the top Sensex loser, down over 4% after Goa temporarily suspended all mining activities starting on Tuesday. An expert panel formed by the government found "serious illegalities and irregularities" in mining operations, the state government said in a statement late on Monday.

Among other metal shares, JSPL, Tata Steel, Sterlite and Coal India have declined between 0.3-3%.

Auto shares like Hero Moto, M&M and Bajaj Auto have slipped between 1-2%.

Other notable losers include Bharti Airtel, HDFC Bank, Wipro, L&T, HUL and Infosys.

On the gaining side, GAIL, Sun Pharma, BHEL, NTPC, HDFC, Cipla and Dr Reddy’s Lab have gained by 1% each.

Among other shares, Fulford India has moved higher by 4% at Rs 953 on back of heavy volumes after the company revised the open offer price upwards from Rs 830 per share to Rs 1,000 per share.

Tulip Telecom has locked down circuit of 5% at Rs 77.25 for second day in a row on the Bombay Stock Exchange (BSE). The stock of telecom services provider is under pressure as company yet to tie-up funds for redemption of foreign currency convertible bonds (FCCBs).

EIH Limited is trading higher by 3% at Rs 81.35 extending its previous day’s around 4% gain after ITC raised its stake in the Oberoi Group Company by 1% through an open market transaction.

India's state-run oil marketing companies rose on Tuesday on media reports that a cabinet panel will meet later in the day to look into a potential hike in fuel prices. BPCL was up 2.5 percent, while HPCL was up 2.2 percent.

The BSE mid-cap and small-cap indices are trading marginally higher, both gaining between 0.2-0.3%. The overall market breadth remains positive with 1,208 stocks advancing while 1,036 declining.