Markets trim gains

Broader markets gain

The benchmark indices pared gains in the early noon deals on account of weakness in Oil & Gas, IT and FMCG space. At 11:45 am, the Sensex was up 43 points at 17,469 and the Nifty gained 13 points at 5,301. Earlier, the Sensex had touched a high of 17,524.

However, the broader markets outperformed the Sensex as the midcap and the smallcap indices advanced nearly 0.7% each as compared to the Sensex up 0.1%.

Country's services sector in June expanded for the eighth straight month although at a slower clip, but new orders picked up and firms hired workers at the fastest pace in a year, a business survey showed on Wednesday. HSBC's services purchasing managers' index, which gauges the activity of around 400 firms in India, dropped to 54.3 in June from 54.7 in May. However, it has kept above the 50 mark that signifies growth since November.

In the Asian markets except Shanghai Composite which was down 0.3% all the other markets were trading in the green as investors kept hopes high for more monetary policy stimulus to support the faltering global economy. Nikkei, Kospi Composite and Jakarta Composite up 0.5-1% were the notable gainers.

Back home, among the sectoral indices, metal index was the top gainer up 1.7%. Shares of metals companies rose after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), rose almost 3% on Monday, after China, the world's second-largest economy, has reported rise in its Purchasing Managers' Index (PMI) and hopes of further monetary easing by major central banks. The ones leading the gains were Jindal Steel, Hindustan Zinc, Sterlite, JSW Steel and SAIL up 1.5-2%.

Auto, Consumer Durables, Realty, Bankex and Power indices were the other gainers which added between 0.3-1 %. Meanwhile, FMCG and IT continues to remain in the negative territory for the third consecutive day.

Oil & Gas index too fell in the red, down 0.7% as crude oil prices gained in the international market. ONGC lost 2.5% along with HPCL, BPCL and IOC down 1% each. Reliance Industries lost 0.3%.

The gainers among the Sensex stocks were Maruti Suzuki, Bajaj Auto, SBI, Bharti Airtel up 1-2%.

Among the losers were Wipro, Sun Pharma, Dr Reddys Lab and Hindustan Unilever down 1% each.

Among other stocks, Engineering, air conditioning and refrigeration major, Voltas Limited rallied 6% to Rs 113 on reports that it has become market leader in the Rs 7,000-crore room air-conditioner market of India, surpassing Korean giant LG.

OnMobile Global soared 10% to Rs 34, after the company informed that HDFC Mutual Fund has bought more than 1% stake in the company through an open market transaction.

Hitachi Home and Life Solutions (India) advanced 17% to Rs 147 on over 30-fold surge in trading volumes. According to reports, Hitachi Home & Life Solutions (India) Ltd (HHLI), a subsidiary of Hitachi Appliance Inc, Japan has increased its market share in the room air-conditioner market to 7.3% in May 2012 from 5.2% in July 2011.

The market breadth continued to remain positive. 1533 stocks advanced while 894 stocks declined on the BSE.