Markets remain range bound

ITC, auto shares gain, software shares, ONGC trading lower

Indian shares continued to remain range bound with negative bias in late morning trades Friday as gains in  ITC and auto shares failed to offset losses software shares.

At 11:25AM, the Sensex was down 15 points at 18,830 and the Nifty slipped six points at 5,732.ONGC and Infosys were the names weighing down the benchmark indices.

In the broader markets, the midcap index gained 0.1% and the smallcap index gained 0.5% outperforming the Sensex which was flat with a negative bias.

Among the sectoral indices, along with IT down 0.6%, Oil & Gas, Capital Goods, PSU and Auto indices too slipped into the negative, losing 0.1-0.5%.

Meanwhile, Asian shares fell further on fear world's largest economy may face recession amid looming fiscal crisis in the United States, while Europe still awaits a bailout for Greece, keeping investor risk appetite subdued.

MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.3%, to 844.78 during the Asian trades. Japan's Nikkei average dropped 0.66% as the yen firmed, weighing on exporters. Among others, Shanghai Composite, Hang Seng and Straits Times were also trading lower.

Back home, the rupee lost a 0.05 paise to Rs 54.31 against the US dollar.

Among other shares, Ashok Leyland has rallied 6% to Rs 25.40 on the Bombay Stock Exchange after reporting a better-than-expected net profit of Rs 142 crore for September 2012 quarter against an average analyst estimates of Rs 90 crore. Commercial vehicle maker had net profit of Rs 154 crore in previous year quarter.

Aditya Birla Nuvo has surged 5% to Rs 967 after reporting a healthy 42% year-on-year (yoy) jump in its consolidated net profit at Rs 304 crore for the quarter ended September 30 on the back of good growth across all its business segments. Revenues grew 12% at Rs 5,992 crore on y-o-y basis.

Godrej Industries Ltd, dropped 3% to Rs 309.15 after the company posted a 17.56% fall in the consolidated net profit due to increase in tax expenses.

Indian Hotels Ltd, the owner of iconic Taj chain of hotels, gained 1% to Rs 64.20 after Orient Express has rejected a takeover bid by the Tata-owned company dealing a setback to the Indian company's attempt to substantially increase its global footprint by adding the luxury hotel resort to its portfolio.

ONGC Ltd, the state-run producer, fell 2% to Rs 260 after reporting 32% decline in quarterly profit, just missing expectations.

Manappuram Finance Ltd, the gold NBFC, tanked 10% to Rs 34.30 after reporting 20% year-on-year drop in net profit at Rs 108 crore for the September 2012 quarter, due to lower income from operations and increase in finance cost.

Sun Pharmaceutical Industries Ltd,  country's biggest drug maker, rose 1%, on reports company inked a pact to acquire US-based DUSA Pharmaceuticals for around $230 million.

Tata Power Ltd, rose 1.3%, after the company said it has acquired 26% stake in Baramulti Sukses Sarana (BSSR), Indonesia. BSSR owns coal resources in coal resources in south and east Kalimantan in Indonesia. The company is based in Cilegon, Indonesia.

United Spirits Ltd, country's biggest spirits maker, rose 2%, after liquor major Diageo and Vijay Mallya's United Spirits are widely believed to have clinched a transaction giving the British company complete control over Indian spirits maker.

United Breweries Ltd, owned by billionaire Vijay Mallya, rose 14% at Rs 820, also its record high, after reporting a healthy 75% year-on-year growth in net profit at Rs 34 crore for the quarter ended September 2012. Total income from operations grew 18% at Rs 873 crore on y-o-y basis.