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Key share indices continue to remain volatile in a narrow range, oscillating between negative and positive terrain.
By 10:25, the 30-share Sensex was down 19 points at 19,780 and the 50-share Nifty was down 2 points at 5,984.
According to Navneet Daga, derivative analyst, KR Choksey Securities, “The structure of the markets giving the sign of breaking down towards support levels of 5900 in short term. For immediate short term 5950 is crucial level on nifty support. While until any decisive break above 6125 se seen markets will find supply on every rise.
On the global front, Asian shares began the new month with a cautious tone on Monday as uncertainty over how much longer the current US stimulus would continue prompted investors to book profits from recent highs and pulled global equities lower.
China's factory activity shrank for the first time in seven months in May as both domestic and external demand softened, while growth in the services sector cooled, pointing to slowing momentum in the world's second-largest economy.
The HSBC/Markit Purchasing Managers' Index (PMI) for May fell to 49.2, the lowest level since October 2012 and down from April's final reading of 50.4. The figure was slightly lower than a preliminary reading of 49.6 released on May 23.
Back home, the rupee today strengthened by 10 paise against the US dollar to 56.40 in early trade at the Interbank Foreign Exchange market, on the back of selling of US currency by exporters.
BSE IT and TECk indices have surged between 2-3%. However, BSE Auto, Power, Oil & Gas and Consumer Durable indices are down by 1% each.
From the IT space, index heavyweight Infosys has gained by nearly 6% after the board on Saturday appointed NR Naryana Murthy as executive chairman for a period of five years.
This is the first time in corporate India that a retired chairman has been called back to head the same company in an executive capacity.
The reason for the appointment of Murthy seven years after he gave up his executive post and nearly two years after he retired as non-executive chairman is obvious, the software major has been grappling with a string of disappointing results and loss in market share.
Adds Navneet Daga, derivative analyst, KR Choksey Securities, “Infosys after the news had broken is key resistance zone of above 2500 levels, we believe traders should not chase the prices at current levels, but should wait for stock to stabalize near 2500 levels to enter in fresh longs. On upside 2700 is possible in June series. Lot os short squeeze is visible on the stock currently”.
Other gainers are Coal India, Wipro, Bharti Airtel, Dr Reddy’s Lab, Cipla, JSPL and GAIL.
On the losing side, auto majors like Bajaj Auto, Maruti Suzuki, Hero Moto and Tata Motors have fallen between 1-3% on weak may sales numbers.
Shares of Maruti Suzuki were down 3% after the company on Saturday announced that total sales in May 2013 were down 14% compared to the same month last year.
Other losers are Tata Power, NTPC, RIL, Sun Pharma and ITC, all dipping between 1-2%.
Among other shares, Crisil shares surged by their daily limit of 20% on Monday after McGraw Hill Financial Inc offered to increase its stake in the domestic ratings agency to 75% from 52.77%.
McGraw Hill announced an open offer of Rs 1,210 per share, marking a premium over Crisil's record high of Rs 1,150.3 hit on April 2012.
Shares of Torrent Pharma extended gains on Monday and were up 7% at Rs 845 after the company last week said that its board has proposed a bonus issue.
The markets breadth in BSE remains neutral with 763 shares advancing and 786 shares declining.
