Markets pare some losses but still trades in red

Indian equity markets continue to gyrate in a tight band with a negative bias in the early noon session, though the broader indices were trading higher supporting the market breadth, but weakness in oil & gas and healthcare sector on whole was pulling the markets lower. Oil & gas heavyweight Reliance Industries (RIL) remains in somber mood on reports that increase in natural gas output from the D6 block in the Krishna-Godavari (KG) basin, operated by RIL, may not be possible in the next 36 months. While, the other heavyweight of the oil sector ONGC was down on news that Supreme Court would start its final hearing on the $125 million contract for laying offshore pipelines along the country's west coast in the first week of July. However, the defensive sector FMCG along with capital goods and power stocks that have been buzzing for a couple of days are trying to keep the momentum balanced.

The BSE Sensex is currently trading at 18,478.37, down by 17.25 points or 0.09%. The index has touched a high and low of 18,505.10 and 18,400.44 respectively. There were 15 stocks advancing against 14 declines on the index and one stock trading stable.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices were up by 0.45% and 0.56% respectively. 

The major gaining sectoral indexes on the BSE were FMCG up by 0.83, CD up by 0.62%, CG up by 0.55%, PSU up by 0.48% and Power up by 0.43%. While, Oil &Gas down by 0.59%, HC down by 0.24%, TECk down by 0.23%, IT down by 0.14% and Bankex down by 0.10% were the major losers on the index.

The top gainers on the Sensex were NTPC up by 1.39%, ITC up by 1.37%, BHEL up by 1.27%, Tata Motors up by 1.16% and Reliance Communication up by 1.09%.

On the flip side, Maruti Suzuki down by 1.35%, ONGC down by 1.28%, Hero Honda down by 1.27%, Cipla down by 1.07% and Bharti Airtel down by 0.99% were the top losers on the index.

Meanwhile, the government on June 07, 2011, has approved 16 Foreign Direct Investment (FDI) applications worth around Rs 923.55 crore. The Foreign Investment Promotion Board (FIPB) had taken up around 38 proposals, but the board rejected 7 proposals, delayed decision on 14 proposals, and 1 recommended to the Cabinet Committee of Economic Affairs (CCEA).

The FIPB gave approval to Soma Tollways (Andhra Pradesh) for induction of foreign equity in an investing company, L&T Finance Holdings' request for permission for pre-IPO placement of equity shares with eligible non-resident investors, the Star News Broadcasting's (Touch Tele Content) proposal for induction of foreign capital and other major proposals that were cleared by the FIPB includes Global Gourmet (Gujarat), Park Controls & Communications (Bangalore) and Centum Electronics (Bangalore).

The FIPB delayed decision on request by Indian Rotorcraft (Mumbai) for induction of foreign equity and Precision Electronics to undertake the additional activity in the defence sector, other deferred decision on proposals were BNP Paribas SA (Paris), Sightlife USA, Southern CNG Automobiles and Natixis Global Asset Management (France). The rejected proposals were Reynders Label Printing India (Delhi and Haryana), Anuradha Holdings (Bangalore) and AOS Holding India SAS (France).

The proposal of Tata Steel and PTC India Finance Services (Delhi, Haryana) were withdrawn from the list of FIPB on the request of applicants. The proposal which was recommended to CCEA was Cals Refineries' (Delhi, Haryana) request to issues equity shares in the form of Global Depository Receipts (GDR) against supply of refinery equipments. The FDI proposal is expected to bring Rs 1,425 crore.

In 2010-11 India attracted $19.43 billion FDI, as against to $25.83 billion in 2009-10, a sharp decline of 25%. According to the official data, FDI in January to March 2011 fell by 32% in comparison to same period of last year. Mauritius (42%), Singapore (9%), U.S.A. (7%) U.K. (5%), Netherlands (4%) and Japan (4%) are the major investors in India.

The S&P CNX Nifty is currently trading at 5,548.50, down by 7.65 points or 0.14%. The index has touched a high and low of 5,555.80 and 5,526.50 respectively. There were 26 stocks advancing against 24 declines on the index.

The top gainers of the Nifty were NTPC up by 1.36%, ITC up by 1.27%, BHEL up by 1.21%, Tata Motors up by 1.05% and GAIL up by 1.04%.

ONGC down by 1.41%, Hero Honda down by 1.31%, Maruti down by 1.27%, Reliance down by 1.09% and Cipla down by 1.05% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Hang Seng declined 0.64%, Jakarta Composite dropped 0.38%, Taiwan Weighted shed 0.55%, Straits Times trimmed 0.31%, Seoul Composite plunged 0.82% and Shanghai Composite declined 0.13%

On the flip side, KLSE Composite was trading higher by 0.09% and Nikkei 225 added 0.08%.

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/?TJzsLEwstCyc7OysHMyctEa0jAwMnMwMzKw=