Sensex flat, Nifty hovers around 8,100 in lack of market cues

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Benchmark indices opened on a flat note tracking mixed cues from after US gained in overnight trade.

At 9:17 am, the 50 index was trading nearly 1 point lower at 8,103 levels, while the S&P as trading 30 points higher at 26,404 levels. Among broader markets, was up 0.12% while Smallcap gained 0.09%.

has been consolidating in a range of 8055 to 8275 zones since last sixteen trading sessions and it has multiple pauses in between this broader range on both the side. Index may remain range bound till the trading range is not taken out decisively but stock specific activity is likely to continue in the market,” said Anand Rathi Technicals in a note.

Meanwhile, on Wednesday, foreign investors sold equities worth Rs 535.77 crore, while domestic investors bought equities worth Rs 556.36 crore.

Sectors and Stocks

Coal India, ITC, and NTPC were the top gainers at while Adani Ports, HUL, Bharti Airtel and PowerGrid were the top laggards.

Coal India gained over 1% after Goldman Sachs initiated coverage on Coal India with ‘Buy’ rating with a target price of Rs 360.

Telecom stocks extended losses with RCom, Bharti Airtel and Idea fell between 0.69%-1.5%.

Most Group stocks were trading in green after Cyrus Mistry’s resignation yesterday.  TCS,Power, Motors, Steel gained between 0.5-2%

Tata-war ends

Cyrus on Monday quit from the boards of six listed companies, including Motors and Indian Hotels. He vowed to shift his fight to a “larger platform” as the “coercive action taken by Tatas against various stakeholders was making him uneasy”.

He would, however, continue to remain a director on the board of Sons. His resignation will have a positive influence on their share prices. The stocks are also expected to gain in trade, said experts.

The share price of a majority of the 25-plus listed group companies, except for Elxsi (up 6.1%) has fallen between October 24 — when was removed as Sons chairman — and December 19.

Most of them have fallen by a higher margin when compared to the fall in S&P (down 6.4%), with losses ranging between 10 and 24%. The few like (down 5.8%), Steel (3.6%), Power (7.6%) and Communications (3.6%) reported a single-digit fall in their share price. As per data compiled by Business Standard’s research bureau, the combined loss in market cap of group companies since October 24 is Rs 77,492 crore (a decline of 9.1%).

holds rates

The kept monetary policy steady and gave a more upbeat view of the economy on Tuesday, reinforcing market expectations that its future policy direction could be an increase – not a cut – in interest rates.

It maintained short-term interest rate target at 0.1%, maintained 10-year JGB yield target around 0%.

The central bank revised its outlook on exports and output and said the economy is likely to turn to moderate expansion. “Risks to the outlook include developments in US economy, impact of US monetary policy on global markets”, it said.

Global Markets

MSCI’s broadest index of Asia-Pacific shares outside Japan pared earlier gains to trade little changed. Japan’s Nikkei was flat.

Reduced volumes ahead of the Christmas holidays tempered buying in some Asian markets.

China’s CSI 300 index slid 0.4%, and Taiwan shares retreated 0.3%. Hong Kong shares reversed earlier losses to trade little changed.

ended higher on Monday, albeit below the session’s highs, as optimism over Yellen’s upbeat comments about the U.S. labor market offset some of the risk aversion following the attacks.

The Nasdaq 100 hit a fresh all-time intraday high, while the three major indexes closed within 0.75% of their record highs. The major averages ended off session highs.