Rangebound trading...

The markets have once again recovered lost ground and have moved into the positive territory in the previous trading hour. Select buying in index heavyweights is aiding the markets to hold ground. While auto, energy and engineering sectors are trading firm, FMCG, pharma and telecom stocks are showing mixed trends.

The BSE Sensex is at 6,378 (up 10 points) and the NSE Nifty is at 1,993 (up 7 points). The rupee is trading at 43.82 to the dollar.

Power stocks are finding some favour amongst investors today after being hammered for past several days in tandem with the market. Among the key gainers today are PTC (4%), Tata power (TTPW.BO, news) (2%) and NTPC (1%). Reliance (RELI.BO, news) Energy is trading marginally in the positive. As per a leading business daily, NTPC is likely to sign an agreement with Reliance Industries for the supply of gas for its upcoming power projects in Gujarat. Earlier, Reliance has emerged as the lowest bidder for supply of gas to NTPC's Kawas and Gandahar power stations in Gujarat. Reliance will supply about 3 m tonnes per annum of liquefied natural gas/natural gas from the Krishna-Godavari basin for 2,600 mw expansion plans of the projects.

Auto stocks are trading higher today with Ashok Leyland (ASOK.BO, news) (6%) taking charge and stocks like Hero Honda (HROH.BO, news) (2%), M&M (2%), Maruti (1%), TVS Motors (1%) and Tata Motors (1%) also trading in the positive. As per reports, TVS Motors has launched its entry-level 4-stroke motorcycle, TVS Star in Maharashtra. This new 100 cc 4-stroke TVS Star is targeted at the new economy segment and will be priced at Rs 30,990 onwards. This is inline with the company's strategy to capture a larger market share in the mid-size two wheelers segment. However, the company's lack of consistency in performance in the past warrants some caution.

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