Sensex, Nifty Trade in Narrow Range

BSE Sensex and Nifty were mostly flat while trading was in a very narrow range. Though global markets were mostly higher, concerns over rising oil prices capped gains in Indian markets and put pressure on the rupee.

The rupee weakened to 60.33 to a dollar today as Brent crude held near $115 a barrel and headed for its second weekly gain on increased risks of supply disruptions from Iraq.

Market analyst Rajat K Bose said markets are likely to remain rangebound between 7480 and 7650. If Nifty falls below 7480, it could see more downside, he added.

An index of global stocks was near record highs on Friday while gold celebrated its biggest one-day rise in nine months as markets wagered policies would stay super loose in the United States, Europe and Japan for a long time to come.

Despite global markets registering new highs, the advances in Indian markets have been stalled amid concerns over the impact of rising oil prices on domestic economy. India imports nearly 80 per cent of its oil requirements.

Dr.Tirthankar Patnaik, director & strategist of institutional research at Religare Capital Markets, said the rising crude prices are likely to be an overhang on the Indian markets. "The macro situation in India is on the mend and things are likely to improve as we go along. But global cues are negative in the near term and as we see the situation in Iraq is turning for the worse. A price hike in crude leads to significant sensitivity to currency as India imports nearly 80 per cent of its crude requirement," Mr Patnaik said.

Gautam Y. Trivedi, managing director & head of equities at Religare Capital Markets, however does not see a big correction for Indian markets as he expects buying to emerge at lower levels. Overseas investors have been the backbone of a 21 per cent rise in the broader Nifty so far this year.

Some buying was seen in oil & gas stocks after they suffered a selloff yesterday. ONGC, which fell over 5 per cent yesterday, was up nearly 1 per cent. Cairn India rose nearly 1.2 per cent while RIL also traded with minor gains. Among Nifty stocks, United Spirits rose nearly 3 per cent to be biggest gainer among the pack. The nearly Rs 11,000 crore open offer from Diageo for United Spirits shares ended yesterday.

Banking stocks also edged up with Bank Nifty rising 0.5 per cent. Axis Bank and Kotak Mahindra Bank rose nearly 2 per cent.

At 12:20 p.m., the Sensex was up 15 points 25,219 while Nifty added 17 points to 7,544. (With Agency Inputs)