Sensex caught in tight band; Hindalco gains over 3%

The market remains quite listless this morning amid alternate bouts of buying and selling in front line stocks. With the reporting season about to start and some crucial economic data due for release on Thursday, investors appear rather reluctant to build up positions.

Also, there are reports that the European economy is heading for a double-dip recession and that the U.S. economic recovery will not be any significantly encouraging. Back home, conditions are not any promising what with investments plunging to dismal levels and companies not coming out with any big projects.

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The Sensex, which drifted down into the red after a recovery from lower levels, has edged up a bit and is now up 20.28 points or 0.13% at 15,185.37. The National Stock Exchange benchmark Nifty is up 6 points or 0.12% at 4855.55.

Realty stocks, which had taken a severe beating in recent months, are among the top gainers today amid hopes of a rate cut. Mirroring strong gains posted by key stocks in the realty space, the BSE Realty index has surged 2.25% now.

Metal stocks are trading higher thanks to a firm trend in global metal markets on expectations of more monetary easing by the Chinese government. Consumer durables, bank and power stocks are finding modest support.

Automobile, oil, healthcare and FMCG stocks are trading mixed. Capital goods and information technology stocks are mostly subdued. Even as large cap stocks are struggle to find their way up, several stocks from midcap and smallcap sections have moved up sharply on strong buying support.

Mahindra & Mahindra, a prominent gainer in the previous session, is down by over 2.5% at Rs 672 now. Jindal Steel, Tata Consultancy Services, Bharti Airtel, Maruti Suzuki, BHEL, ONGC, Cipla, Wipro and Larsen & Toubro are trading lower by 0.5% - 1.5%.

Among the gainers in the Sensex, Hindalco is up 3.3% at Rs 127 following Novelis Inc renewing its can-body sales agreement with Coca-Cola Bottlers' Sales & Services Company. On Tuesday, Novelis and CCBSS announced the signing of a multi-year agreement for the supply of aluminum can sheet. The two companies have also reportedly agreed to dismiss all pending litigation relating to the previous contractual terms.

DLF, Sterlite Industries and Hero Motocorp are trading stronger by 2.5% - 3%. ICICI Bank is up 1.5% and Bajaj Auto is trading 1.2% up. Tata Steel, Reliance Industries, Sun Pharmaceuticals and HDFC are also trading higher.

Jet Air India has spurted 7.5% to Rs 204.80. Kingfisher Airlines and SpiceJet are also trading sharply higher this morning, amid hopes the government will change its stance and allow higher investment by foreign airlines in the Indian aviation sector.

Pantaloon Retail is up more than 7% on strong volumes following the government clearing the deck for 100% foreign direct investment in single-brand retail. Shares of Shoppers Stop, Store One Retail, V2 Retail, Trent, Koutons Retail and Provogue are also up in positive territory with strong gains.

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Dish TV India, Adani Enterprises, Adani Power, ING Vysya Bank, Wockhardt, Opto Circuits, Sintex Industries, JSW Energy, Financial Technologies, Power Finance Corporation, Lanco Infratech, Neyveli Lignite Corporation and EIH are up 2.5% - 4.75% now.

Hindustan Copper, Lupin, MMTC, Rashtriya Chemicals & Fertilizers, IRB Infrastructure, Apollo Tyres, Container Corporation, Federal Bank and Ultratech Cement are trading lower by 1.5% - 4%.