Sensex flat, rupee still above 63, realty stocks gain

Indian markets opened flat this morning ahead of theSeptember IIP and October CPI data, which will be released later today.

While the BSE Sensex opened25 points higher at 20,516, Nifty was up 12 points at 6,090.75.

“Nifty has reached an important support of 6080 and now has next support placed at 6035,” GEPL Capital said in a report.

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BSE realty index started the morning at the top of the sectoral pack with gains of nearly 1 percent; BSE auto index was the top sectoral loser, down 0.4 percent.

The rupee opened weaker at 63.43 against yesterday’s close of 63.24 despite encouraging trade data for October.

Better jobs data from the US sent the dollar soaring against most global currencies; the dollar index was ruling at 81.157 against 81.14 in mid-September.

Indranil Sengupta of Bank of America Merrill Lynch feels the rupee market has begun to look ahead at tapering of the RBI’s swaps with oil companies. “We continue to expect the rupee to stabilize at 60-65/USD if the euro-dollar trades in a 1.20-1.30 range. Not surprisingly, the rupee remains among the weakest of the BRIC currencies,” he said in an interview with CNBC-TV18.

Sengupta expects the rupee to end around 63/USD levels by December-end.

Rcom, Fortis Healthcare and HPCL results will be in focus today. Hindalco results will mostly be announced after market hours.

The government is reviving plans to sell its 10% stake in state refiner Indian Oil Corp worth about $800 mn. The company will launch its investor roadshows in the United States today.

US stocks were higher with the Dow rising to another high. Asian stocks are closely eying the Chinese Communist Party policy-meeting.