Nifty in narrow range; NTPC, Cairn, Bharti dip

The benchmark Nifty was trading in a narrow range of 5500-5540 since the last couple of hours following quiet trade in Asian and European markets.

All global markets were closely watching crude oil price movement. Brent crude oil stabilised around USD 113 a barrel at 14 hours after falling from USD 115 a barrel and crude was hovering around USD 104-105 a barrel on the NYMEX as Libyan tensions eased for the time being.

OPEC members reassured on ample spare capacity and discussions were on for a possible emergency meet. Saudi Oil Ministry said has enough spare capacity for oil markets. 

Michael Spencer, chief economist and head of global markets research, Asia Pacific at Deutche Bank tells CNBC-TV18 that tensions in West Asia have pushed crude oil prices to elevated levels.

"We will need to see prices probably, in terms of Brent up around USD 140-USD 150 per barrel and stay there for a number of months before we get worried about a growth outlook. At this point, it just adds a little bit more to the anxiety about inflation and a concern about maybe central banks need to do a little bit more on rates. It is more of an inflation problem at this point than it is a concern about growth."

Even the truce between UPA allies DMK and Congress for seat-sharing issue in the forthcoming Tamil Nadu election came to end yesterday. DMK chief M Karunanidhi said Congress would get 63 seats and DMK would contest 121 for the forthcoming Tamil Nadu election, reports CNBC-TV18 quoting PTI. PMK and IUML part with one seat each will give Congress the 63 seats.