Sensex, Nifty move in tight band; MTNL up 6%

Last Updated: Wed, Jun 18, 2014 11:39 hrs

Amid alternate bouts of buying and selling in cautious trade, key Indian stock indices Sensex and the Nifty are moving in a tight range this morning.

Due to a lack of prominent triggers, investors are mostly refraining from making significant moves so far. The U.S. Federal Reserve's two-day meeting that ends today, could give some direction to global markets in the near term. It is widely expected that the Fed will reduce its asset buying by $10 billion. The Fed's call on interest rate and its statement on the economy are eagerly awaited.

At 25,535.35, the Sensex is now up 14.16 points or 0.06% from its previous close. The Nifty index of the National Stock Exchange is up 8.40 points or 0.11% at 7640.10.

Capital goods, realty, power, oil, metal and healthcare stocks are among the notable gainers. Bank and FMCG stocks are mostly flat, while information technology stocks are a bit weak.

Cipla (up nearly 5%) is firm thanks to sustained buying at the counter following the company's subsidiary Cipla (Mauritius) Ltd., signing a definitive agreement with the company?s existing Sri Lankan distributor for acquisition of 60% stake in a new company which will market the company?s products in Sri Lanka.

Hindalco has moved up 2.3%. GAIL India, Sesa Sterlite, ONGC and Axis Bank are up 1% - 1.8%. Reliance Industries, Larsen & Toubro, Bharti Airtel, Tata Power, Tata Steel, State Bank of India, Dr Reddy's Laboratories, NTPC and Mahindra & Mahindra are also up in positive territory.

Kotak Mahindra Bank is up sharply on reports the bank is set to raise the ceiling for foreign investors in the bank to 40% from 37%.

Tata Consultancy Services is lower by about 1.7%. Wipro, HDFC Bank, Hero Motocorp, Sun Pharmaceutical Industries, ICICI Bank and ITC are down 0.3% - 1%.

Crisil, up 8.5%, is the biggest gainer in BSE 'A' Group. HDIL, Berger Paints, Bajaj Finance, REC, Sobha Developers, Zee Entertainment, Gujarat State Petronet, South Indian Bank, Apollo Tyres, Kotal Bank, Biocon, Container Corporation of India, MCX, Oil India, SAIL and Power Finance Corporation are moving up 2% - 4%.

Prestige Estates, Bharti Infratel, Shriram Transport Finance, Engineers India, Cummins India, IRB Infrastructure, Exide Industries, Thermax and Asian Paints are down 0.5% - 2%.

Bank of India is up 1% at Rs 303. The bank said that its board has approved the raising of Tier-1 and Tier-2 capital by issue of fresh equity shares and Tier-1 and Tier-2 bonds at an appropriate time subject to all necessary approvals.

MTNL is up over 6% on reports that the government will initiate steps to revive ailing state-owned telecom company.

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