Indian markets turn choppy after a positive start

The Indian equity markets have made a firm start following slightly positive cues from the global markets but, reversed their entire initial gains and dipped into the red on the back of weakness in auto and banking shares while, sustained selling by foreign funds also dampened the sentiments. Though, global cues remained positive as the US market closed higher overnight while, all the Asian counterparts were trading in the positive terrain at this point of time. Back home, on the sectoral front software witnessed the maximum gain in trade followed by consumer goods and technology while, auto, banking and public sector undertaking remained the top losers on the BSE sectoral space. However, the broader indices were outperforming benchmarks. Meanwhile, PSU oil marketing companies viz., BPCL, HPCL and IOC edged lower in the trade as international crude oil prices moved higher in volatile trading on Monday as gains in the equity markets lifted sentiment towards oil. The market breadth on the BSE was positive; there were 1,803 shares on the gaining side against 1,018 shares on the losing side while 101 shares remained unchanged. 

The BSE Sensex opened at 16,446.85; about 105 points higher compared to its previous closing of 16,341.70, and has touched a low of 16,252.69 while high remained its opening. The index is currently trading at 16,285.09 down by 56.61 points or 0.35%. There were 12 stocks advancing against 18 declines on the index.

The overall market breadth has made a positive start with 61.70% stocks advancing against 34.84% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged by 0.20% and 0.41% respectively.

The top gaining sectoral indices on the BSE were, IT up by 0.68%, CG up by 0.67%, TECk up by 0.65%, Realty was up by 0.45% and CD was up by 0.26%. While, Auto down by 0.98%, Bankex down by 0.67%, PSU down by 0.55%, FMCG down by 0.51% and Oil and Gas down by 0.44% were the top losers on the index.

The top gainers on the Sensex were TCS up by 1.70%, BHEL up by 1.11%, DLF up by 1.09%, Jindal Steel up by 0.98% and Sun Pharma was up by 0.86%.

On the flip side, Coal India was down by 2.40%, Tata motors was down by 2.35%, M&M was down by 1.99%, Wipro was down by 1.80% and Cipla was down by 1.55% were the top losers on the Sensex.

Meanwhile, the Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry is all set to release the new document consolidating all Foreign Direct Investment (FDI) related issues into a master circular. The FDI inflow during April-June 2011 has registered robust growth despite the ongoing uncertainty in the major investing countries such as US and European nations.

The DIPP, the nodal government body for FDI related issues has asked for stakeholders' views on the new document which is going to be released by the end of the next month. "The next edition of Consolidated FDI Policy Circular is due for release on September 30. This will incorporate all changes effected in FDI Policy...i.e. from April 1 to September 30," the DIPP said.

The last edition of the DIPP's consolidated FDI policy was released on March 31. Since March 2010, DIPP has releasing its all FDI related policies in single document, with a view of making India's FDI policy simple and easy for investors.  Before, the document had gone through many press notes issued by the DIPP and RBI regulations to understand the FDI policy.  Whereas releasing the first edition of the FDI policy document, the government had said the document will be updated every six months.

Despite the ongoing uncertainty in the global economy, FDI inflow has increased by 133% to $13.44 billion in the first quarter of current financial year. This surge in the FDI inflow shows increased confidence of foreign investors in Indian economy. However, from last two financial years, India has been registering decline in FDI inflows. To break this declining trend of FDI inflow, government had taken several steps to attract FDI.

The S&P CNX Nifty opened at 4,925.15; about 27 points higher compared to its previous closing of 4,898.80, and has touched a high and a low of 4,927.70 and 4,875.80 respectively.

The index is currently trading at 4,882.90, lower by 15.90 points or 0.32%. There were 19 stocks advancing against 31 declines on the index.

The top gainers of the Nifty were TCS up by 1.76%, Sun Pharma up by 1.25%, BHEL up by 1.25%, Jindal Steel up by 1.02% and Infosys up by 0.95%.

On the flip side, Tata Motors down by 2.76%, M&M down by 2.70%, Cipla down by 1.67%, Wipro down by 1.47% and HDFC Bank down by 1.32%, were the major losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite was up 14.13 points or 0.56% to 2,529.99, Hang Seng was up 109.43 points or 0.56% to 19,596.30, Jakarta Composite was up 7.56 points or 0.20% to 3,847.18, KLSE Composite was up 1.12 points or 0.08% to 1,473.28, Nikkei 225 was up 62.06 points or 0.72% to 8,690.19, Straits Times was up 12.51 points or 0.46% to 2,744.32, Seoul Composite was up 52.42 points or 3.06% to 1,763.12 and Taiwan Weighted was up by 144.87 points or 1.98% to 7,457.46. 

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