(RTTNews) - Monday, the Indian market is trading almost flat amid considerable volatility due to alternate bouts of buying and selling. However, second-line stocks are receiving good buying support across the board.

Investors are making selective buying on expectations of a second fiscal stimulus package to be unveiled by the government later this week and rate cuts by the RBI after the index of wholesale inflation dropped to a nine-month low last week.

However, the market is showing volatility due to mixed cues from the rest of the Asian markets, the public holiday on Thursday and the expiry of December series derivatives contract on Wednesday.

Meanwhile, the Indian rupee opened weak this morning after the other Asian currencies eased against the dollar. Additionally, concerns about capital outflows weighed on the currency. The rupee was last trading at Rs.47.40/41 against the dollar compared to Friday’s close of Rs.47.26/27.

On the BSE, the market breath is positive, led by small-caps and mid-cap stocks. Totally, 1174 stocks are gaining compared to 379 stocks that are declining. Realty and consumer durable stocks are gaining sharply, while technology and FMCG companies are showing modest losses.

Tata Motors, DLF, Jaiprakash Associates, Reliance Communication, Tata Steel, ONGC, Ranbaxy Laboratories, Larsen & Toubro and State Bank of India are some of the prominent major gainers.

However, Wipro, ICICI Bank, TCS, Strelite Industries, Infosys, HDFC, ITC, Reliance Industries, Hindustan Unilever and Bharti Airtel are trading in the red.

The BSE Sensex opened at 10,102 and rose to an intra-day high of 10,162 this morning. However, the index has since then pared most of its gains and is trading at 10,101, up 2 points or 0.02%. The broad-based BSE 500 index is rising 0.54%, while the small-cap and the mid-cap indexes are rising more than 1.0% each. The S&P CNX Nifty is trading at 3,079, up 0.04%.

Ranbaxy Laboratories is up 1.98% on reports that it is planning to sell three of its manufacturing units in China, Vietnam and Malaysia as part of a strategy to rationalize its business portfolio and cut costs. Jaiprakash Associates is rising 3.70% ahead of a board meeting to consider a scheme of amalgamation.

State Bank of India is up 1.73% and HDFC Bank is up 0.79% after the banks slashed their retail lending rates on home loans. Subex is up 0.85% after the founders of the company decided not to exercise the warrants allotted to them last year.

Select auto ancillary companies that are focused on export markets are rising following the approval of a US $17.4 billion bailout package for troubled auto giants - General Motors and Chrysler LLC.

Amaraja Batteries is up 2.50%, Amtek Auto is surging up more than 5.0%, Bharat Forge is gaining 2.53%, Exide Industries is up 1.98%, Ucal Fuel Systems is adding 4.19%, Sundaram Clayton is up 2.30% and Sona Koyo Steering Systems is up 2.18%.

Pyramid Saimira is surging up 4.11% after the Sebi asked one of its promoters, P S Saminathan to make an open offer to acquire further 20% stake at not less than Rs.250 per share as against Friday’s closing price of Rs.75 on the BSE.

Tata Motors is climbing 5.13% following reports that the company has agreed to inject “tens of millions” of pounds into Jaguar Land Rover to prevent an immediate cash flow crisis. Unitech is soaring 8.14% on reports that ITC, Accor and some high net worth individuals are in the race to acquire its six hotel properties.

Maytas Infra is down 10.0% even as the Andhra Pradesh government on Saturday night
issued an order sanctioning Rs.121 crore for Maytas to construct a 30-km stretch of the state highway in Cuddapah district.

Fortis Healthcare is up 3.87% after the company called for a board meeting on December 24 to consider and approve a proposal for raising funds by way of further issue of capital on a “Rights Basis” to existing shareholders.

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