The Indian equity markets have made a strong start in the early trade tracking positive cues from Asian counterparts as they were trading mostly in the positive terrain at this point of time, indicating strong investors' sentiment. Back home, sustained buying in key heavyweights along with broader indices supported NSE's -- Nifty -- to regain its crucial 5,500 mark. Realty witnessed the maximum gain in trade followed by capital goods and fast moving consumer goods with no losers on the BSE sectoral space. The broader indices were going neck to neck with benchmarks. Meanwhile, Index heavyweight Reliance Industries was trading with a gain of over half a percent while, Reliance Communications and National Aluminum Company declined on poor Q4 results. The market breadth on the BSE was positive; there were 1,143 shares on the gaining side against 508 shares on the losing side while 66 shares remained unchanged. Moreover, the traders are eying for fourth quarter and full year gross domestic product (GDP) numbers for further guidance which is slated to be announced near late morning trade today.
The BSE Sensex opened at 18,266.61; about 32 points higher compared to its previous closing of 18,232.06, and has touched a high of 18,348.92 while low remained its opening.
The index is currently trading at 18,348.68, up by 116.62 points or 0.64%. There were 23 stocks advancing against just 7 declines on the index.
The overall market breadth has made a strong start with 66.57% stocks advancing against 29.59% declines. The broader indices were performing in line with benchmarks; the BSE Mid cap and Small cap indices surged 0.77% and 0.58% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 1.44%, CG up by 1.15%, FMCG up by 1.05%, Bankex up by 0.97% and HC was up by 0.94%. While there were no losers on the index.
The top gainers on the Sensex were DLF up by 1.82%, Wipro up by 1.71%, ITC up by 1.49%, HDFC up by 1.23% and Bajaj Auto was up by 1.17%. On the flip side, Reliance Communication was down by 1.31%, ONGC was down by 1.29%, Cipla was down by 0.97%, M&M was down by 0.90% and Bharti Airtel was down by 0.47%, were only losers on the Sensex.
Meanwhile, the Foreign Direct Investment (FDI) in service sector has decreased by 22.5% in 2010-11, mainly due to slow global recovery and uncertainty in Euro zone. According to Industry Ministry data, FDI in service sector dropped to $3.4 billion in 2010-11. Last year service sector had received FDI worth $4.39 billion. Service sector which contribute more than 50% to the nation's economic growth has the largest share in FDI inflow despite the fall the recent fall.
Experts have cited that the fall in FDI is mainly because of the global financial crisis especially in European market that is making investors cautious of undertaking overseas investments. However, they further opine that investors are gaining their confidence as the global market is recovering and there is good possibility that service sector will attract more FDI in 2011-12.
The FDI in service segment was followed by telecommunication segment ($1.6 billion), automobile ($1.33 billion), power ($1.25 billion), housing and real estate ($1.12 billion) and metallurgical industries ($1.10 billion). Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and the UAE, among other countries, are the major investors in India.
Falling FDI inflow rate in the economy is alarming for the Indian government. Overall FDI inflow into country has decreased by 25% to $19.4 billion during 2010-11 compared to $25.8 billion in 2009-10. In the same period other emerging economies experienced increase in FDI inflow. To attract more foreign investment in India, government is taking steps like allowing FDI in Limited Liability Bill, permitting the issuance of equity to overseas firms against imported capital goods and machinery, and in latest development government is expected to open its politically sensitive Multi-band retail sector for investment. However, there is still long way to go and the Indian government needs to take a serious policy action, not only in terms of investment friendly policy but also for implementation. There are so many examples of Major FDI project being stuck at implementation stages for years. The well known example is India's largest FDI project worth $12 billion by South Korean steel company Posco, its implementation is delayed by 6 years.
The S&P CNX Nifty opened at 5,492.00; about 19 points higher compared to its previous closing of 5,473.10, and has touched a high and a low of 5,512.35 and 5,489.70 respectively.
The index is currently trading at 5,510.00, higher by 36.90 points or 0.67%. There were 41 stocks advancing against 9 declines on the index.
The top gainers of the Nifty were Wipro up by 1.82%, Dr Reddy up by 1.71%, DLF up by 1.71%, Ambuja Cement up by 1.61% and ITC up by 1.52%.
On the flip side, Reliance Capital down by 2.01%, Reliance Communication down by 1.37%, Cipla down by 0.94%, ONGC down by 0.81% and M&M down by 0.57%, were the major losers on the index.
Most of the Asian equity indices were trading in the red; Hang Seng was up 213.93 points or 0.92% to 23,398.25, KLSE Composite was up 7.06 points or 0.46% to 1,549.90, Nikkei 225 was up 137.07 points or 1.44% to 9,642.04, Straits Times was up 9.56 points or 0.30% to 3,150.16, Seoul Composite was up 32.22 points or 1.54% to 2,126.01 and Taiwan Weighted was up by 103.66 points or 1.17% to 8,927.34.
On the flip side, Jakarta Composite was down 2.45 points or 0.06% to 3,823.69 and Shanghai Composite was down by 3.50 points or 0.13% to 2,702.86.
The BSE Sensex opened at 18,266.61; about 32 points higher compared to its previous closing of 18,232.06, and has touched a high of 18,348.92 while low remained its opening.
The index is currently trading at 18,348.68, up by 116.62 points or 0.64%. There were 23 stocks advancing against just 7 declines on the index.
The overall market breadth has made a strong start with 66.57% stocks advancing against 29.59% declines. The broader indices were performing in line with benchmarks; the BSE Mid cap and Small cap indices surged 0.77% and 0.58% respectively.
The top gaining sectoral indices on the BSE were, Realty up by 1.44%, CG up by 1.15%, FMCG up by 1.05%, Bankex up by 0.97% and HC was up by 0.94%. While there were no losers on the index.
The top gainers on the Sensex were DLF up by 1.82%, Wipro up by 1.71%, ITC up by 1.49%, HDFC up by 1.23% and Bajaj Auto was up by 1.17%. On the flip side, Reliance Communication was down by 1.31%, ONGC was down by 1.29%, Cipla was down by 0.97%, M&M was down by 0.90% and Bharti Airtel was down by 0.47%, were only losers on the Sensex.
Meanwhile, the Foreign Direct Investment (FDI) in service sector has decreased by 22.5% in 2010-11, mainly due to slow global recovery and uncertainty in Euro zone. According to Industry Ministry data, FDI in service sector dropped to $3.4 billion in 2010-11. Last year service sector had received FDI worth $4.39 billion. Service sector which contribute more than 50% to the nation's economic growth has the largest share in FDI inflow despite the fall the recent fall.
Experts have cited that the fall in FDI is mainly because of the global financial crisis especially in European market that is making investors cautious of undertaking overseas investments. However, they further opine that investors are gaining their confidence as the global market is recovering and there is good possibility that service sector will attract more FDI in 2011-12.
The FDI in service segment was followed by telecommunication segment ($1.6 billion), automobile ($1.33 billion), power ($1.25 billion), housing and real estate ($1.12 billion) and metallurgical industries ($1.10 billion). Mauritius, Singapore, the US, UK, Netherlands, Japan, Germany and the UAE, among other countries, are the major investors in India.
Falling FDI inflow rate in the economy is alarming for the Indian government. Overall FDI inflow into country has decreased by 25% to $19.4 billion during 2010-11 compared to $25.8 billion in 2009-10. In the same period other emerging economies experienced increase in FDI inflow. To attract more foreign investment in India, government is taking steps like allowing FDI in Limited Liability Bill, permitting the issuance of equity to overseas firms against imported capital goods and machinery, and in latest development government is expected to open its politically sensitive Multi-band retail sector for investment. However, there is still long way to go and the Indian government needs to take a serious policy action, not only in terms of investment friendly policy but also for implementation. There are so many examples of Major FDI project being stuck at implementation stages for years. The well known example is India's largest FDI project worth $12 billion by South Korean steel company Posco, its implementation is delayed by 6 years.
The S&P CNX Nifty opened at 5,492.00; about 19 points higher compared to its previous closing of 5,473.10, and has touched a high and a low of 5,512.35 and 5,489.70 respectively.
The index is currently trading at 5,510.00, higher by 36.90 points or 0.67%. There were 41 stocks advancing against 9 declines on the index.
The top gainers of the Nifty were Wipro up by 1.82%, Dr Reddy up by 1.71%, DLF up by 1.71%, Ambuja Cement up by 1.61% and ITC up by 1.52%.
On the flip side, Reliance Capital down by 2.01%, Reliance Communication down by 1.37%, Cipla down by 0.94%, ONGC down by 0.81% and M&M down by 0.57%, were the major losers on the index.
Most of the Asian equity indices were trading in the red; Hang Seng was up 213.93 points or 0.92% to 23,398.25, KLSE Composite was up 7.06 points or 0.46% to 1,549.90, Nikkei 225 was up 137.07 points or 1.44% to 9,642.04, Straits Times was up 9.56 points or 0.30% to 3,150.16, Seoul Composite was up 32.22 points or 1.54% to 2,126.01 and Taiwan Weighted was up by 103.66 points or 1.17% to 8,927.34.
On the flip side, Jakarta Composite was down 2.45 points or 0.06% to 3,823.69 and Shanghai Composite was down by 3.50 points or 0.13% to 2,702.86.
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