CHOPPY MARKETS

The benchmark equity indices continued to trade choppy with slight negative bias in late morning session after the March series F&O contract expiry. On the other hand, all other Asian market except Nikkie were trading in green while U index futures also trading higher. Back home , NSE Nifty  and BSE Sensex  were trading above their psychological level of 5,800 and 19,400 levels respectively . Meanwhile, in the BSE sectorla space gains from Realty , FMCG ,Metal , Power and Auto stocks were offset by losses in Information Technology (IT) ,TECk , Oil & Gas and PSU stocks. While the broader markets were showing   good strength; the BSE Mid cap and Small cap indices surged 0.86% and 1.15% respectively. However, the overall market breadth still remains in the favour of advances which are presently outnumbering declines in the ratio of 1664:800, while, 83 shares remained unchanged.

The BSE Sensex decreased 30.94 points or 0.16% at 19,414.28.The index has touched a high of 19,562.55 and a low of 19,401.84 respectively.

The BSE Mid cap and Small cap indices surged 0.86% and 1.15% respectively. 

The top gaining sectoral indices on the BSE were, Realty up by 1.73%, FMCG up by 0.87%,Metal up 0.73%, Power up by 0.73% and Auto up 0.62%. While Bankex down by 1.03%, Information Technology (IT) down by 0.61%,TECk down by 0.51% Oil & Gas down by 0.24% and PSU down 0.13%  were the only losers on the index.

The top gainers on the Sensex were Reliance Communication up by 2.51%, BHEL up by 2.11%,Hero Honda up by 1.79%, Hindalco Industries up by 1.56% and DLF up 1.33%.

On the flip side, Wipro down by 1.62%, SBI down by 1.50%, Tata Power down by 1.27%, ICICI Bank down by 1.20% and NTPC down by 1.09% were the top losers on the index.

In a significant relaxation in the norms governing the foreign direct investment (FDI) into the country, the government has allowed companies to issue equity to overseas investors against import of capital goods and machinery to be used by such companies. The facility was earlier available for companies raising external commercial borrowings (ECBs).

Further, with the revised norms released on Thursday, FDI may also be considered in cases where foreign investors are involved in pre-operative or pre-incorporation expenses, including payments of rent etc. These measure, which are aimed at further liberalizing conditions for conversion of non-cash items into equity, are expected to significantly ease the conduct of business, said the government in an official release.

In another major simplification, the government removed the categorization of 'investing companies', 'operating companies' and 'investing-cum-operating companies' and has instead introduced a two-way classification including 'companies owned or controlled by foreign investors' and 'companies owned and controlled by Indian residents'. It also scrapped an existing rule that mandates prior approval of technology collaborations mandatory for FDI in existing joint ventures.

Further, as per the latest circular on FDI policies, corporate entities will have the option of prescribing to a conversion formula, subject to the FEMA/ SEBI guidelines, on pricing, instead of specifying the price of convertible instruments upfront. The move is expected to help the recipient companies in obtaining a better valuation based upon their performance the circular read.

In the agriculture sector too, the government has made some significant incremental liberalization aiming at improving the productivity of farm operations and made things easier for overseas investors like those engaged in production and development of seeds. As per the revised rules, FDI will now be permitted in the development and production of seeds and planting material, without the stipulation of having to do so under 'controlled conditions'.

The S&P CNX Nifty trimmed 9.95 points or 0.17% at 5823.80. The index has touched a high and low of 5,860.20 and 5,814.20 respectively.

The top gainers of the Nifty were Reliance Capital up by 3.75%, Reliance Communication  up by 3.79%, Grasim up by 2.53%, BHEL up by 2.36% and Hero Honda up by 1.86%.

PNB down by 2.40%,Wipro down by 1.93%, HCL Technologies down by 1.88%, Dr Reddy  down by 1.77% and ICICI Bank down by 1.45%, were the major losers on the index.

All other Asian markets with an exception Nikkei 225 trimmed 0.48% were trading in the green. Shanghai Composite increased 0.70%, Hang Seng gained 0.38%, Jakarta Composite climbed 0.78%, KLSE Composite advanced  0.28%, Straits Times surged 0.28%, Taiwan Weighted advanced 0.15% and Seoul Composite soared 0.34%.