Local equity markets trade flat;realty moves up

The local equity markets are trading flat with marginal losses in late morning session lacking any strong cues from global or domestic front also traders are treading cautiously ahead of February month F&O expiry. Meanwhile, majority of the other regional peers were in negative terrain while US index futures trading in green. The domestic investors appear reluctant to go on any adventurous buying due to geopolitical concerns and rising crude oil prices which may impact India's inflation to a notable extent. Back on street, in BSE sectoral space, Realty, Auto, Power and Metal counters were showing some strength, while, IT index down 1% is the main dragger. Consumer Durables, Bankex, Health Care and FMCG counters too witnessed selling. Reliance Infrastructure up over 7 % is the top gainer among the Sensex stocks. The broader indices were outperforming benchmarks; The BSE Mid cap and Small cap indices were up by 0.03% and 0.42%, respectively. The market breadth on the BSE was in favour of advances in the ratio of 1360:1105 while 105 scrips remained unchanged.

The BSE Sensex declined 9 points or 0.05% at 18,286.80. The index has touched a high and a low of 18,364.26 and 18,226.40, respectively.

The BSE Mid cap and Small cap indices were up by 0.03% and 0.42%, respectively.

The top gaining sectoral indices on the BSE were, Realty up by 0.43%, Oil & Gas up by 0.42%, Metal up by 0.33%, Auto up by 0.16% and Power up by 0.14%.

While, IT down by 1.07%, CD down by 0.82%, Bankex down by 0.64%,TECk down by 0.64% and HC down by 0.52% were the major losers on the index.

The top gainers on the Sensex were Reliance Infra up by 7.84%, HDFC up by 2.70%, Sterlite Industries up by 2.11%, Hero Honda up 1.36% and Bharti Airtel up 1.16%.

SBI down by 1.18 %, Infosys down by 1.75 %, Tata Power down 1.56 5 , ICICI Bank  down by 1.20% and Wipro down 0.99% were the top losers on the index.

India's trade with the 10-member Association of Southeast Asian Nations (ASEAN), with which has last year signed a free trade agreement (FTA), was likely to reach $70 billion over the next three years, said Sumanta Choudhuri, joint secretary in the Ministry of Commerce and Industry on Tuesday.

In the last calendar year, India's overall trade with the bloc stood at $50.1 billion, which included $22.3 billion worth Indian exports to the bloc and $27.8 billion worth imports. Choudhuri further added that the two sides were set to organize a five-day business conclave aimed at boosting the bilateral trade and two-way investment activities.

Eight members of the bloc have already implemented the trade treaty while two members - Philippines and Cambodia - are yet to implement the agreement, which is expected to happen soon. Following this, the trade will grow further. The growth in trade during 2010 was nearly 20% compared with the levels of 2009 and as the global economic scenario improves and economic uncertainties go down, the growth will only accelerate going forward.

During the business conclave being organized by the two sides, trade ministers of all the member countries of the ASEAN will lead an official and business delegation. A total of over 500 businesses from various sectors will participate from the ASEAN side. From the Indian side too industry majors will showcase the latest technologies India has been developing. India Inc is hoping to reap substantial opportunities in the conclave.

India is also negotiating a services treaty with the ASEAN following which the country's services sector, the main engine of Indian growth, will be able to explore opportunities in ASEAN members at favourable terms. It has also implemented bilateral trade and investment agreements, broader than the FTA with ASEAN, with some members of the bloc including Singapore, Indonesia and Malaysia. 

The S&P CNX Nifty trimmed 5.10 points or 0.09% at 5,464.10. The index has touched a high of 5,491.35 and a low of 5,446.35.

The top gainers of the Nifty were Reliance Infra up by 7.71%, HDFC up by 2.79% Reliance Capital up by 2.45%, Sterlite Industries up by 2.03% and Hero Honda up by 1.49%.

The top losers of the index were Ranbaxy down by 4.21%, IDFC down by 2.23%, SBI down by 1.97%, Infosys down by 1.65% and Sesa Goa was down by 1.61%.

Majority of the other regional peers are trading in red. Shanghai Composite plummeted 0.14%, Hang Seng shed 0.43%, KLSE Composite declined  0.29%, Nikkei 225 tumbled  0.80%, Straits Times slid 0.77%, Taiwan Weighted trimmed 1.67% and Seoul Composite declined 0.74% While Jakarta Composite gained 0.96%.

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