Equities indices largely flat in early trade ahead of Christmas holiday; IndusInd Bank, ONGC among top gainers

Equity benchmark indices were flat during the early trading on as investors stayed on the sidelines for a second straight session ahead of the Christmas holiday, while IndusInd Bank and ONGC gained up to 2.07 percent.

The 30-share BSE index was trading 39.42 points or 0.09 percent lower at 41,603.24 at 10.45 am. Similarly, the broader NSE Nifty fell 10.70 points or 0.09 percent to 12,252.05.

IndusInd Bank was the top gainer in the Sensex pack, which rose 2.07 percent in the morning trade. ONGC, Hero MotoCorp, NTPC, Maruti, HDFC and Mahindra were also trading in the green.

Representational image. Reuters.

On the other hand, HCL Tech was the top loser falling up to 1.77 percent. Infosys, Reliance Industries, SBI, Tech Mahindra and HDFC Bank were the other losers.

Most sectoral indices at the National Stock Exchange (NSE) were in the green except for Nifty IT, realty and financial service. Nifty media gained by nearly 1 percent, reported ANI.

Among stocks, Zee Entertainment was the top gainer by 2.31 percent to trade at Rs 301.60 per share. The others in positive zone included IndusInd Bank, Yes Bank, Hero MotoCorp and Mahindra & Mahindra.

However, IT stocks fell with HCL Technologies down by 1.4 percent, Tech Mahindra by 0.5 percent and Wipro by 0.4 percent. HDFC Bank and Dr Reddy's too traded in the negative terrain.

The domestic stock indexes hit record intraday highs on Friday, but with just a handful of trading days remaining in 2019, markets have since remained subdued due to a lack of significant drivers, reported Reuters.

Shares in Yes Bank, down 26 percent so far this month amid uncertainty over its plans to raise more capital, rose as much as 3.2 percent.

Indiabulls Real Estate’s stock climbed 1.4 percent. The company announced plans late on Sunday to sell commercial assets to Blackstone Group for Rs 810 crore ($114 million).

Optimism that a US-China trade deal would revive exports and boost corporate earnings helped Wall Street rise to record closing highs on Monday, but Asian shares darted in and out of losses on Tuesday amid a holiday lull.

“(The Nifty is) likely to stay range-bound between 12,150 to 12,350 zones while stock-specific action (is) likely to continue in near term,” analysts at Motilal Oswal wrote in a report.

The rupee opened weaker as compared to yesterday's close of 71.17 against dollar amid rising oil prices.

Asia stocks drift lower

Meanwhile, Asian shares and US stock futures darted in and out of losses on Tuesday, as the holiday lull offset optimism that a US-China trade deal will boost exports and corporate earnings.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.01 percent.

Blue-chip shares in China rose 0.29 percent after Premier Li Keqiang said on Monday the government was considering more measures to lower corporate financing costs.

Australian shares were unchanged, while Japan’s Nikkei stock index edged 0.02 percent lower.

Sterling traded near a four-week low versus the euro and a three-week trough against the dollar on growing doubts over how Britain will navigate the transition period for its exit from the European Union.

Oil prices held steady before data on US crude inventories later on Tuesday, but there are signs that recent supply cuts may not last after Russia’s energy minister said oil producers could ease output restrictions in March.

Wall Street’s main indexes posted record closing highs on Monday after US President Donald Trump said an initial US-China trade pact would be signed soon.

A de-escalation of a trade conflict between the world’s two-largest economies is a positive for companies that feed global supply chains, but some investors want to wait until next year to see how long the current thaw in Sino-US relations lasts.

Oil prices inch higher

Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia’s energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in US crude inventories.

Brent crude was up 5 cents at $66.44 a barrel. US West Texas Intermediate was 1 cent higher at $60.53 a barrel.

OPEC, Russia and other producers that have linked up to curtail production and support prices will continue their cooperation as long as it is “effective and brings results,” Russian energy minister Alexander Novak said in an interview on Monday.

Cooperation with the Organisation of the Petroleum Exporting Countries (OPEC) would continue “until the market requires it,” Novak added.

— With inputs from agencies