TIGHT RANGE

Indian stock markets have prolonged the lull for the third straight session and are continuing to oscillate in a very tight range around previous closing levels. Investors are sitting on the sidelines lacking conviction amid the persistent worries over global financial stability. The global economic outlook was dimmed by aggravating sovereign debt troubles across the western nations, a weak US consumer confidence which hit a near 2-1/2 year low in early July and stalling US manufacturing output in June. The somber opening of European markets and subdued trends from the Asian peers kept local investors out of action. Back home on the sectoral front, the information technology shares lost maximum ground on concerns over their first quarter earnings amid the worsening debt troubles for US and Europe - the major importers of their services. The rate sensitive Automobile sector along with some Oil & Gas and Healthcare names too traded with a negative bias. On the other hand, buying interests were largely evident in high beta Real Estate stocks while, the power and metal counters too gained traction in the early noon session. However, the broader markets are trading on a positive note with over half a percent gains, outperforming their larger peers by quite a margin. The bourses consolidated on weak volumes while the market breadth on BSE was in favor of advances in the ratio of 1625:988 while 119 scrips remained unchanged.
The BSE Sensex is currently trading at 18,567.68 down by 5.76 points or 0.03% after trading as high as 18,622.56 and as low as 18,516.54. There were 18 stocks advancing against 12 declines on the index.
The broader indices are trading on a positive note; the BSE Mid cap index advanced 0.52% and Small cap rose by 0.66% respectively. 
On the BSE sectoral space, Realty up 1.18%, Power up 0.84%, Metal up 0.84%, Consumer Durable up 0.52% and FMCG up 0.52% were the major gainers, while IT down 0.58%, Teck down 0.33%, Auto down 0.28%, oil & Gas down 0.17% and Healthcare down 0.12% were the major losers on the index.
The top gainers on the Sensex were Hindalco up by 3.14%, BHEL up by 2.40%, Tata Power up by 1.81%, HDFC Bank up 1.69% and DLF up 1.61%.
On the flip side, Cipla down by 2.02%, TCS down 1.68%, M&M down 1.22%, L&T down 0.98% and Tata Motors down by 0.69% were the major losers on the index.
The foreign institutional investors (FIIs) infused around Rs 8,000 crore or $2 billion in the domestic stock and debt market so far this month, experts have the opinion that investment from FIIs will continue to increase in the coming months.
As per the information available with market regulator SEBI, the FIIs, in July made gross investment of around Rs 43,994 crore in equities and debt securities, however, they also sold shares and bonds worth around 36, 195 crore, resulting of net investment of Rs 7,799 crore. Experts say, this increase in FII flows is due to moderation in crude oil prices and inflation. FIIs were quite optimistic on the equity market; they invested around Rs 6,475 crore in equities and Rs 1,324 crore in securities market.
Investors had avoided the stocks markets in emerging countries such as India in the first six months of the 2011 as these countries battled inflation. Besides, high interest rate was also considered as a risk to these countries. However, foreign investors were interested in the debt market during the same period of time, FII invested around Rs 9,948 crore in debt market whereas they invested around Rs 2,670 crore in stock markets. Market experts believe that, FIIs will remain bullish in the remaining six months of the current financial year, and investment from FIIs is expected to increase.

During 2010, FIIs purchased stocks and bonds worth around Rs 10 lakh crore, in the same period, Foreign investors also sold shares and bonds worth around Rs 7,80,000 crore, which resulted into net investment of Rs 1.75 lakh crore for the year, which is a record. During the same year, the number of FIIs registered with SEBI marginally increased to 1,728 as of July 2011 from 1,718 at the end of 2010. The S&P CNX Nifty is currently trading at 5,580.50, lower by 0.60 points or 0.01% after trading as high as 5,596.60 and as low as 5,563.70. There were 29 stocks advancing against 21 declines on the index.

The top gainers of the Nifty were Hindalco up by 3.23%, IDFC up by 2.16%, BHEL up by 2.13%, Tata Power up by 2% and HDFC Bank up by 1.59%.
Cipla down by 2.45%, TCS down 1.65%, M&M down 1.57%, L&T down 1.45% and NTPC down 0.76% were the major losers on the index.
Asian markets are exhibiting somber trends as Shanghai Composite fell by 0.29%, Hang Seng shed 0.36%, KLSE Composite declined 0.87%, Straits Times eased 0.19%, Seoul Composite slipped by 0.69% and Taiwan Weighted slumped by 0.42%.
On the flipside only Jakarta Composite gained 0.28%. While Stock markets in Japan remained shut on account of Ocean Day Holiday.
The European markets have opened on a weak note as France's CAC 40 shed 0.94%, Germany's DAX dropped 0.86% and London's FTSE eased 0.67%