Range-bound trades continue

Broader markets gain

Markets continue to trade in a tight range with the Nifty hovering around the 5300 level. The gains in the FMCG counter was helping the Sensex to remain in the green with the BSE benchmark index up eight points at 17,470.

Meanwhile, the broader markets continue to outperform the Sensex with the smallcap index up 1% and the midcap index gaining 0.6%.

According to Alex Mathews, Head Technical and Derivatives Reseach, the upcoming Q1 results, inflation for the month of June, RBI first quarter review towards the end of July are some of the signs which investors are looking forward to in the short term.

A rally in Asian shares fizzled out on Thursday as markets marked time before the European Central Bank's policy decision later in the day, with the euro staying pressured by widespread expectations of a rate cut to support fragile euro zone growth. Shanghai Composite lost over 1% along with Hang Seng, Nikkei, KLSE Composite and Taiwan Weighted down 0.2-0.5%.

Back home, among the sectoral indices, FMCG up 0.7% was the top gainer after being in red since the start of the week. Capital Goods, Power, Consumer Durables which gained between 0.3-0.5 % were the notable gainers. Meanwhile, Metal, IT, Realty down 0.2-0.3% were the major losers.

Shares of companies in the retailing sector have rallied at the bourses in morning trades on hopes that the government may soon notify 100% foreign direct investment in multi-brand retail business. Tata Group’s Trent surged 9% to Rs 1,043, while Shoppers Stop rallied 9% to Rs 385, Provouge (India) surged 7% at Rs 19 and Kishore Biyani-led Future group's Pantaloon Retail (India) up 4% at Rs 200.

Shares of Bajaj Group companies such as Bajaj Auto, Bajaj Finserv, Bajaj Holdings and Investment and Bajaj Finance are trading lower by 1-2% on turning ex-dividend today.

The top gainers among the Sensex pack were Cipla, Hindustan Unilever,     Tata Power, BHEL and ITC up 1-2%. Mahindra & Mahindra, Hero MotoCorp, Reliance Industries and SBI were some of the other gainers.

On the losing side were ONGC, Dr Reddys Lab, NTPC, Bharti Airtel, TCS and Hindalco down 0.6-1%

Among other stocks, KEC International was up nearly 6% at Rs 62 after the company said it has bagged orders worth Rs 795 crore across its transmission and power system segments in domestic and international markets.

SKS Microfinance gained over 3% at Rs 71 on reports that the Reserve Bank of India (RBI) may relax some of the norms pertaining to microfinance institutions.

The market breadth was positive on the BSE. 1585 stocks advanced while 793 stocks declined.