Markets trade choppy but remain in positive terrain

The local equity markets continue to trade choppy with a positive bias after a sharp rally in previous week on buying by institutions and retail investors in fundamentally strong shares amid a firm trend in the Asian markets. While, the broader markets midcap and small cap indices were outperforming the benchmark; the BSE Mid cap and Small cap indices surged 1.30% and 2.10% respectively. Meanwhile, majority of the Asian markets were trading in the green while US index futures were trading slightly in negative. Back home, all the sectoral indices were trading in green with an exception of Oil & Gas sector. IT and TECk stocks were the lead gainers in the BSE sectoral space. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 2047:474, while, 71 shares remained unchanged.

The BSE Sensex surged 67.67 points or 0.35% at 19,477.06 .The index has touched a high of 19,566.29 and a low of 19,449.36 respectively.

The BSE Mid cap and Small cap indices surged 1.30% and 2.10% respectively. 

All the sectoral indices in the BSE barring Oil & Gas down 0.28% were trading up, IT was up by 1.33%, TECk up by 1.04%, PSU up by 0.89%, Metal up by 0.87% and Consumer Durables (CD) was up by 0.85%.

The top gainers on the Sensex were JP Associates up 2.36% ,Hero Honda up by 1.83%, Jindal Steel up by 1.75%, Mahindra & Mahindra up by 1.57% and Infosys up 1.43%.

On the flip side, Reliance Communication down by 2.42%, Hindustan Unilever down by 1.95%, CIpla down 1.67%, Reliance Infra down by 1.42% and HDFC down by 1% were the top losers on the index.

Both India and the European Union have been working hard to reach a consensus on the much awaited free trade agreement (FTA) between the two sides. The chief negotiators from the two sides will hold meeting on Tuesday with an aim to conclude talks as soon as possible. Indian government expects that the proposed FTA will come into force within current calendar year itself.

P K Chaudhary, Special Secretary in the ministry of commerce for trade pact negotiations and the EU Chief Negotiator Ignacio Garcia Bercero will hold a two day meeting in New Delhi starting from Tuesday. The two will try to minimize differences on some of the critical issues including the intellectual property rights and human rights related issues which have been acting as road blocks.  

Although most of the negotiations have been completed, there are still some contentious issues where both the sides are treading with a lot of care. Indian side has been particularly sensitive to inclusion of any human rights related clause into the trade deal as it feels FTAs are not the documents for these kind of clauses. Similarly, the two sides still differ to some extent on their views with regard to intellectual property rights and the protection of patents.

India and its largest trading partner, the 27-nation EU, have been negotiating a comprehensive trade pact, the Bilateral Investment and Trade Agreement (BITA), for last three years. The negotiations which started in 2007 were initially expected to be finished by 2009 but the global economic slowdown and the disagreement on the above mentioned difficult issues have delayed the conclusion of negotiations.

The agreement will not only open trade in goods but also liberalize trade in services, an area of strength for India. It will also help ease visa regime in the European countries which in turn will provide for easier mobility of business persons and even skilled labour to some extent in both the directions. The two sides are now looking to quickly engage in some final give and take and seal the negotiated text within next few months.  

The S&P CNX Nifty advanced 18.65 points or 0.32% at 5,844.70. The index has touched a high of 5,867.50 and a low of 5,833.20 respectively.

The top gainers of the Nifty were JP Associates up 2.25%, HCL Technology up 1.89%, Hero Honda up 1.86%, Jindal Steel up 1.75% and IDFC up 1.59%

RCom down by 2.46%, HUL down by 1.99%, Reliance Infra down 1.63%, Cilpa down by 1.38% and Sesa Goa down 1.29% were the major losers on the index.

Majority of the Asian markets were trading in the green; Hang Seng surged 1.13%, KLSE Composite inched up 0.08%, Nikkei 225 gained 0.11% and Straits Times rose 0.54%. Whereas, Seoul Composite declined 0.24% and Jakarta Composite trimmed 0.22%.

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/?TJzsLEwstCyc7OysHMyctEa0nKwMzGwc7A==