Market trade range-bound after a flat start

The Indian equity markets are trading range-bound after making a soft start tracking weak cues from Asian markets. All the Asian counterparts barring Straits Times and KLSE Composite were trading in the red at this point of time. However, the US markets made a mixed closing overnight, though Dow surged to its more than two years high, the other major indices closed in red. Back Home some selling pressure continued in the Auto stocks leading the markets lower. Though, the BSE's -- Sensex -- and NSE's -- Nifty -- were trading comfortably higher from their crucial level of 20,400 and 6,100 level. On the sectoral front, capital goods, oil and gas and software were the other top gainers in trade, on the other hand banking was feeling the maximum selling pressure followed by auto and fast moving consumer goods. Meanwhile, the telecom stocks viz Idea, Reliance Communication and MTNL all started in the green after government said that telecom operators can roll out 3G telephony, while working on the modalities to provide monitoring facilities to the security agencies. Home Ministry, Union Home Minister P Chidambaram said the Department of Telecom and his ministry were working together in putting in place some rules and norms for intercepting or monitoring of 3G. The market breadth on the BSE was negative; there were 1,011 shares on the losing side against 852 shares on the gaining side while 70 shares remained unchanged.

The BSE Sensex opened at 20,509; about 10 points higher compared to its previous closing of 20,498, and has touched a low of 20,401.44 while high remain its opening. The index is currently trading at 20,414.85, down by 83.87 points or 0.41%. There were 23 stocks advancing against 7 declines while on the index.

The overall market breadth has made a negative start with 44.08% stocks advancing against 52.30% declines. The broader indices were outperforming benchmarks; the BSE Mid cap was up by 0.01% while and Small cap was down by 0.06%.

The top gaining sectoral indices on the BSE were, CG up by 0.38%, Oil and Gas up by 0.33%, IT up by 0.26%, HC up by 0.14% and TECk was up by 0.10%. While, Bankex down by 1.47%, Auto down by 0.32%, FMCG down by 0.30%, Metal down by 0.27% and Power down by 0.13%, were the major losers on the index.

The top gainers on the Sensex were Jaiprakash Associates up by 2.04%, L&T up by 1.06%, TCS up by 0.98%, Reliance Industries up by 0.35% and HUL was up by 0.31%.

ICICI Bank down by 2.19%, SBI down by 1.41%, HDFC Bank down by 1.38%, Bajaj Auto down by 1.21% and HDFC down by 1.19% were the top losers on the index were.

Meanwhile, the Indian government has issued the formal notification for export of 5 lakh tonne of sugar. It has asked sugar mills to register themselves for seeking the Release Order for exports under Open General License (OGL). Mills have been allowed to export all forms of sweetener - raw, white and refined, but there will be no export subsidy.

Further, the exports under the OGL can be used for shipping output from the new crop year (beginning Oct 2010). A new factory set up in 2010-11 will not be eligible for the export entitlement. "The export quota of five lakh tonne has been pro-rated among sugar factories by taking into account their three years' average production," read a circular issued by the Agriculture and Food Ministry.

The OGL is a permit under which mills can export sugar without any restriction and conditions. These permits will be issued only to the tune of allowed export quantity, that is 5 lakh tone. However, the export under OGL would be over and above the export obligation of about 1.5 million tonne of sugar via the Advance License Scheme (ALS) and shipments of imported stocks stuck at ports.

Sugar output in the country declined sharply in 2008-09 season forcing the biggest consumer of sweetener and the second largest producer to turn to imports. Production remained down again in the last season on account of poor monsoon. However, this season, there was a substantial increase in sugarcane planting following high sugar prices in 2009 and production is expected to surge to 24.5 million tonne compared with domestic consumption of 23 million tonne. 

The S&P CNX Nifty opened at 6,141.35; about 5 points lower compared to its previous closing of 6,146.35, and has touched a low of 6,111.90 while high remain its opening. The index is currently trading at 6,116.00, down by 30.35 points or 0.49%. There were 17 stocks advancing against 33 declines on the index.

The top gainers of the Nifty were Jaiprakash Associates up by 2.08%, HCL Tech up by 1.62%, BPCL up by 1.08%, L&T up by 0.80% and Suzlon up by 0.63%.

The top losers of the index were ICICI Bank down by 2.27%, HDFC down by 1.64%, Axis Bank down by 1.51%, SBI down by 1.48% and HDFC Bank was down by 1.39%.

All the Asian markets barring Straits Times and KLSE Composite were trading in the red; Shanghai Composite was down 9.77 points or 0.34% to 2,842.87, Hang Seng was down 1.39 points or 0.01% to 23,667.09, Jakarta Composite was down 9.39 points or 0.25% to 3,750.67, Nikkei 225 was down 20.14 points or 0.19% to 10,377.96, Seoul Composite was down 4.74 points or 0.23% to 2,080.40 and Taiwan Weighted was down by 147.24 points or 1.64% to 8,849.95.

On the flip side, Straits Times was up 2.72 points or 0.08% to 3,253.01 and KLSE Composite was up by 12.34 points or 0.80% to 1,564.23.

Unit-8, 3rd Floor, First Mall, The Mall, Ludhiana-141001, Punjab (INDIA).

To unsubscribe or change subscriber options visit: http://www.aweber.com/z/r/?TJzsLEwstCyc7OysHMyctEa0HOyMnAysnA==