Benchmarks hover around the neutral line; Wipro results disappoint

Despite positive global cues, benchmark equity indices are trading flat in late-afternoon session as a disappointing earnings result by IT major Wipro weighed on the investor's sentiments. While the key Asian markets barring Seoul Composite, which is down by 0.05% are trading in the green; US index futures too were showing an up-tick in screen trade at this point of time. Back home, consumer durables, public sector undertakings, auto, fast moving consumer goods and healthcare segments are the leading gainers in the BSE sectoral space. On the flip side, banking and capital goods sectors were the major laggards. Banking sector is reeling under pressure as Reserve Bank of India (RBI) has fined 19 banks, including the country's top private and foreign banks, besides the State Bank of India (SBI), for violating its guidelines on derivatives. RBI said that offences range from selling unsuitable products to corporates, selling products without verifying the underlying exposure and selling derivatives to companies that do not have risk management practices in place. However, broader markets continue to show strength as the BSE Mid-cap and Small-cap indices are trading with gains of around 0.34% and 0.65%, respectively. The market breadth on the BSE was in favour of advances in the ratio of 1425:1069 while 114 scrips remained unchanged.

The BSE Sensex added 9.75 points or 0.05% at 19,555.10. The index has touched a high of 19,633.63 and a low of 19,529.25 respectively.

The BSE Mid cap and Small cap indices gained 0.34% and 0.65%, respectively. 

The top gainers on the BSE sectoral space were Consumer Durables (CD) up 1.06%, Public Sector Undertakings (PSU) up 0.48%, Auto up 0.48%, Fast Moving Consumer Goods (FMCG) up 0.31% and Healthcare (HC) up 0.27%; while Bankex down 0.23%, Capital Goods (CG) down 0.23%, Realty down 0.19% and Power down 0.14% were the only losers on the BSE sectoral space.

The top gainers of the Sensex were M&M up 1.56%, ONGC up 1.38%, Bharti Airtel up 1.35%, Maruti Suzuki up 1.20% and Sterlite Inds up 0.74%

On the flip side, Wipro down 2.73%, BHEL down 0.89%, SBI down 0.62%, Tata Power down 0.56% and JP Associates down 0.55% were the major losers on the index.

The Indian government on Tuesday cleared the way for setting up of an independent nuclear energy regulator that would have a final say in matters relating to technology to be used for nuclear plants, choice of location and other key safety related issues. The proposed regulator is also not likely to be placed under any ministry and may be directly responsible to the Cabinet or the Prime Minister's Office (PMO).

The move came in a meeting chaired by Prime Minister Manmohan Singh on Tuesday where it was agreed by consensus that an independent regulator was a must if India was to substantially increase the share of nuclear energy in its overall energy mix. The meeting was also attended by the Environment and Forests minister Jairam Ramesh, Atomic Energy Secretary Srikumar Banerjee, Principal Secretary to Prime Minister T K A Nair and National Security Advisor Shivshankar Menon.

It was decided that the government will introduce a Bill in the monsoon session of Parliament to create the Nuclear Regulatory Authority of India (NRAI). Further, the new body will also subsume the role of the existing Atomic Energy Regulatory Board. The NRAI will also be instrumental in fulfilling India's obligations to the international community in respect of safety of its nuclear plants.

The government also gave green signal to the Jaitapur nuclear power project in Maharashtra. The project will involve six 1,650 MW reactors and each will have standalone safety systems. The first two reactors of the project are expected to be operational by 2019, following which there will be a comprehensive environmental impact assessment before a green signal to remaining four projects is given.

Concerns about safety of nuclear plants have increased following the accident at Japanese nuclear plant in March. The accident generated widespread release of radiations, putting lives of large number of people at risk and also causing extensive damage to the environment. Worldwide governments have been reviewing their nuclear energy plans following the accident. While Indian government has said it remained committed to nuclear energy, at the same time it wants to ensure that safety of nuclear plans is handled by an autonomous high quality regulatory board that NRAI will provide.

The S&P CNX Nifty slipped 5.50 points or 0.09% at 5862.90.  The index has touched a high and a low of 5892.35 and 5855.95 respectively.

The top gainers of the Nifty were M&M up 1.53%, Bharti Airtel up 1.35%, ONGC up 1.32%, Maruti Suzuki up 1.03% and Sterlite Inds up 0.65%

On the flip side, Wipro down 3.02%, Ambuja Cement down 2.82%, Siemens down 1.39%, Gail down 1.21% and Rel Capital down 1.13% were the major losers on the index.

Rest of the Asian markets barring Seoul Composite, which is down by 0.05% are trading in the green. Shanghai Composite added 0.11%, Hang Seng advanced 0.47%, Jakarta Composite gained 0.52%, KLSE Composite rose 0.34%, Nikkei 225 surged 1.37%, Straits Times soared 0.48%, and Taiwan Weighted increased 1.13%.

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