Stock markets in India sustained the uptrend on the second day of F&O expiry week, after enthusiastically rallying eight hundred fifty points in last three sessions and managed to finish a choppy session in the green territory. The benchmarks appeared exhausted as they gradually crawled sideways, lacking any significant upside triggers as sentiments remained cautious amid speculations that the recent upsurge may be a "bull trap" and that a correction could be around the corner. Nevertheless, the Sensex has managed to accumulate over nine hundred points in last four trading sessions on the back of some supportive local as well as global developments. The upside chances for local bourses was limited in Tuesday's session as investors took profits off the table from the Oil and Gas counters post their smart rally in the previous session. Rebound in Brent crude oil prices which forms part of India's crude basket also prompted investors to sell shares of oil companies. Meanwhile, Finance Minister Pranab Mukherjee's statement that inflation poses a major challenge to the Indian economy and projection that the rate of inflation is going to be more than 6.5% this year, weighed on domestic investors' morale. However, domestic benchmarks still negotiated a close in the green as sentiments on getting support from the optimism in global markets which rose as an agreement by French banks to roll over Greek debt and talks that European officials were working on a contingency plan for Greece if its parliament rejected an austerity plan improved investors' risk appetite. Majority of Asian equity indices settled in the green zone while, the European counterparts too exhibited positive trends.
Back on Dalal Street, the key indices witnessed a volatile session of trade as after starting on a positive note, they retracted into the red terrain only to see a pullback and eventually finish with moderate gains. The NSE's 50-share broadly followed index Nifty, settled with one third of a percent gains just below the crucial 5,550 support level while Bombay Stock Exchange's Sensitive Index, Sensex closed with around half a percent of gains just below the important psychological 18,500 level. The broader markets though showed resilience and traded with a lot of conviction through the session, outclassing their larger peers by a good a margin. The midcap index garnered 0.78% points while the smallcap index amassed 0.60% point. On the sectoral front, it was the Consumer Durables and the defensive - Healthcare pocket that outperformed not only their sectoral peers but also the benchmarks as they surged by 0.95% each. The capital goods counter too remained amid the thick of things and gained 0.94% as majors like L&T and BHEL gained 0.79% and 1.82% respectively. Stocks of tyre companies to kept buzzing through the session on the news that commerce ministry has proposed removal of 20% duty on the rubber up to 1 lakh tonne due to rising domestic rubber prices. On the other hand, Oil and Gas counter witnessed maximum profit booking and languished at the bottom of the table with close to half a percent loss as majors like GAIL and BPCL slipped by 2.22% and 1.84% respectively. The high beta realty pack too remained under pressure on expectations that the RBI will further its hawkish stance against inflation. The markets consolidated on weaker volumes compared to Monday. Market breadth remained positive as there were 1464 shares on the gaining side against 1378 shares on the losing side while 124 shares remained unchanged.
Finally, the BSE Sensex rose 80.04 points or 0.43% to settle at 18,492.45 while the S&P CNX Nifty gained 18.70 points or 0.34% to settle at 5,545.30.
The BSE Sensex touched a high and a low of 18,527.45 and 18,323.44, respectively. The BSE Mid cap and Small cap index up 0.78% and 0.60% respectively.
The top gainers on the Sensex were Hindalco Inds up 4.15%, Bajaj Auto up 2.87%, HDFC up 2.18%, BHEL up 1.82% and Bharti Airtel up 1.07%.
On the flip side, DLF down 2.21%, JP Associate down 1.56%, Jindal Steel down 1.16%, Wipro down 0.76%, Hero Honda down 0.31% were the top losers on the index.
Meanwhile, the Indian government would now allowed foreign investors other than Foreign Institutional Investors (FIIs) to invest up to $10 billion in domestic mutual funds, a move that will help to reduce the volatility in the capital market. Joint Secretary (capital markets) in the finance ministry, Thomas Mathew, said, this class of investors called Qualified Foreign Investors (QFIs), but not FIIs, can invest money into domestic mutual funds through Unit Confirmation Receipts (DPs) or Depository Participant route.
The QFIs can be Individuals and bodies, including pension funds; cumulatively they can invest up to $10 billion (around Rs 45,000 crore). Currently, only FIIs, sub-accounts listed with the market watchdog Security Exchange Board of India (SEBI), and Non-Resident Indians are allowed to invest in domestic Mutual Fund schemes. Thomas Mathew said, 'SEBI will be the regulator for all investments for both routes," adding the SEBI will issue necessary notification and framework by August 01.
Only KYC (know-your-customer) compliant retail foreign investors would be allowed to invest and the DPs will ensure proper KYC of QFIs as per the norms prescribed by SEBI. Besides, mutual funds would also undertake KYC of QFIs, Thomas Mathew added. By adding further he said, one QFI can open one account in one of the qualified DPs and only QFIs from jurisdictions which are FATF (Financial Action Task Force) compliant would be eligible to invest in the MFs under the scheme.
The move follows the announcement of finance minister Pranab Mukherjee on the issue in the last Budget. The finance minister in last budget said, 'Currently, only FIIs and the sub-account registered with the SEBI and NRIs are allowed to invest in the mutual fund schemes. To liberalize the portfolio investment route it has been decided to permit SEBI registered mutual funds to accept subscriptions from foreign investors who meet the KYC requirements for equity schemes."
'This would enable Indian mutual funds to have direct access to foreign investors and widen the class of foreign investors in India equity market,' the finance minister had said.
As of March 2011, the average assets managed by 40 fund house rose to Rs 7, 00,583 crore. Since it is going to be retail investment, it would be more stable than the FII money, Mathew said.
The top gainers on the BSE sectoral space were Consumer Durables (CD) up 0.95%, Health Care (HC) up 0.95%, Capital Goods (CG) up 0.94%, Auto up 0.82% and Power up 0.72%.
The losers in the BSE sectoral space were Oil & Gas down 0.44%, Realty down 0.33%, PSU down 0.22% and IT down 0.07%.
On a three day visit to India, New Zealand Prime Minister John Key said, New Zealand hopes to conclude the proposed Free Trade Agreement with India by March next year. The bilateral trade between India and New Zealand has been well below the potential, last year it's crossed $1 billion, and both the nations have set the target of trebling bilateral trade to $3 billion in four years.
John Key said, "We expect it to be signed by March 2012". However, Key added that the conclusion would depend on the quality of agreement and negotiations. India and New Zealand already have completed around five rounds of negotiations, India is hopeful to get more market access for its professionals through the FTA and New Zealand is trying to get entry in India's dairy market. 'These things are always delicate and, as we know from the negotiations with Korea, you can hit speed bumps along the way, but I'm confident they want to do a deal,' he added.
The S&P CNX Nifty touched high and low of 5,558.30 and 5,496.35, respectively.
The top gainers of the Nifty were Hindalco up 3.96%, Bajaj Auto up 3.01%, Dr Reddy up 2.42%, HDFC up 2.13% and BHEL up 1.92%.
On the flip side, GAIL down 2.60%, DLF down 2.28%, ACC down 2.17%, BPCL down 2.10% and JP Associate down 1.75% were the major losers on the index.
European markets were trading in a mix note. France's CAC 40 rose by 0.53%, Britain's FTSE 100 advanced 0.39% and Germany's DAX down by 0.16%.
Most of the Asian equity indices reversed their initial losses and finished in the positive terrain on Tuesday as sentiments turned firm on report that French banks hold $21.3 billion in Greek government debt and the plan would give Greece more time to meet its other financial obligations. Japanese Nikkei ended the day's trade with a gain of over half a percent on growing optimism for a resolution to the Greek debt crisis, with exporter stocks supporting the market.
Back on Dalal Street, the key indices witnessed a volatile session of trade as after starting on a positive note, they retracted into the red terrain only to see a pullback and eventually finish with moderate gains. The NSE's 50-share broadly followed index Nifty, settled with one third of a percent gains just below the crucial 5,550 support level while Bombay Stock Exchange's Sensitive Index, Sensex closed with around half a percent of gains just below the important psychological 18,500 level. The broader markets though showed resilience and traded with a lot of conviction through the session, outclassing their larger peers by a good a margin. The midcap index garnered 0.78% points while the smallcap index amassed 0.60% point. On the sectoral front, it was the Consumer Durables and the defensive - Healthcare pocket that outperformed not only their sectoral peers but also the benchmarks as they surged by 0.95% each. The capital goods counter too remained amid the thick of things and gained 0.94% as majors like L&T and BHEL gained 0.79% and 1.82% respectively. Stocks of tyre companies to kept buzzing through the session on the news that commerce ministry has proposed removal of 20% duty on the rubber up to 1 lakh tonne due to rising domestic rubber prices. On the other hand, Oil and Gas counter witnessed maximum profit booking and languished at the bottom of the table with close to half a percent loss as majors like GAIL and BPCL slipped by 2.22% and 1.84% respectively. The high beta realty pack too remained under pressure on expectations that the RBI will further its hawkish stance against inflation. The markets consolidated on weaker volumes compared to Monday. Market breadth remained positive as there were 1464 shares on the gaining side against 1378 shares on the losing side while 124 shares remained unchanged.
Finally, the BSE Sensex rose 80.04 points or 0.43% to settle at 18,492.45 while the S&P CNX Nifty gained 18.70 points or 0.34% to settle at 5,545.30.
The BSE Sensex touched a high and a low of 18,527.45 and 18,323.44, respectively. The BSE Mid cap and Small cap index up 0.78% and 0.60% respectively.
The top gainers on the Sensex were Hindalco Inds up 4.15%, Bajaj Auto up 2.87%, HDFC up 2.18%, BHEL up 1.82% and Bharti Airtel up 1.07%.
On the flip side, DLF down 2.21%, JP Associate down 1.56%, Jindal Steel down 1.16%, Wipro down 0.76%, Hero Honda down 0.31% were the top losers on the index.
Meanwhile, the Indian government would now allowed foreign investors other than Foreign Institutional Investors (FIIs) to invest up to $10 billion in domestic mutual funds, a move that will help to reduce the volatility in the capital market. Joint Secretary (capital markets) in the finance ministry, Thomas Mathew, said, this class of investors called Qualified Foreign Investors (QFIs), but not FIIs, can invest money into domestic mutual funds through Unit Confirmation Receipts (DPs) or Depository Participant route.
The QFIs can be Individuals and bodies, including pension funds; cumulatively they can invest up to $10 billion (around Rs 45,000 crore). Currently, only FIIs, sub-accounts listed with the market watchdog Security Exchange Board of India (SEBI), and Non-Resident Indians are allowed to invest in domestic Mutual Fund schemes. Thomas Mathew said, 'SEBI will be the regulator for all investments for both routes," adding the SEBI will issue necessary notification and framework by August 01.
Only KYC (know-your-customer) compliant retail foreign investors would be allowed to invest and the DPs will ensure proper KYC of QFIs as per the norms prescribed by SEBI. Besides, mutual funds would also undertake KYC of QFIs, Thomas Mathew added. By adding further he said, one QFI can open one account in one of the qualified DPs and only QFIs from jurisdictions which are FATF (Financial Action Task Force) compliant would be eligible to invest in the MFs under the scheme.
The move follows the announcement of finance minister Pranab Mukherjee on the issue in the last Budget. The finance minister in last budget said, 'Currently, only FIIs and the sub-account registered with the SEBI and NRIs are allowed to invest in the mutual fund schemes. To liberalize the portfolio investment route it has been decided to permit SEBI registered mutual funds to accept subscriptions from foreign investors who meet the KYC requirements for equity schemes."
'This would enable Indian mutual funds to have direct access to foreign investors and widen the class of foreign investors in India equity market,' the finance minister had said.
As of March 2011, the average assets managed by 40 fund house rose to Rs 7, 00,583 crore. Since it is going to be retail investment, it would be more stable than the FII money, Mathew said.
The top gainers on the BSE sectoral space were Consumer Durables (CD) up 0.95%, Health Care (HC) up 0.95%, Capital Goods (CG) up 0.94%, Auto up 0.82% and Power up 0.72%.
The losers in the BSE sectoral space were Oil & Gas down 0.44%, Realty down 0.33%, PSU down 0.22% and IT down 0.07%.
On a three day visit to India, New Zealand Prime Minister John Key said, New Zealand hopes to conclude the proposed Free Trade Agreement with India by March next year. The bilateral trade between India and New Zealand has been well below the potential, last year it's crossed $1 billion, and both the nations have set the target of trebling bilateral trade to $3 billion in four years.
John Key said, "We expect it to be signed by March 2012". However, Key added that the conclusion would depend on the quality of agreement and negotiations. India and New Zealand already have completed around five rounds of negotiations, India is hopeful to get more market access for its professionals through the FTA and New Zealand is trying to get entry in India's dairy market. 'These things are always delicate and, as we know from the negotiations with Korea, you can hit speed bumps along the way, but I'm confident they want to do a deal,' he added.
New Zealand is ready to offer more access to Indian Professionals. However, the stress is on the skill level of professionals, Tim Groser New Zealand Trade Minister said, 'We cannot allow unqualified people knocking our front doors and doing a poor job. Indian professionals who can benefit from this FTA, includes teachers, healthcare providers, technicians, IT experts, architects and hospitality providers, among others. New Zealand is seeking to get more access in India dairy sector for its dairy industry, as India has kept the sector largely closed.
Last year, India and New Zealand started their negotiations on a Comprehensive Economic Cooperation Agreement, an FTA, last year, that includes, goods services and investment, both the nation's leaders are also expected to discuss on issues like energy cooperation, including civil nuclear. The S&P CNX Nifty touched high and low of 5,558.30 and 5,496.35, respectively.
The top gainers of the Nifty were Hindalco up 3.96%, Bajaj Auto up 3.01%, Dr Reddy up 2.42%, HDFC up 2.13% and BHEL up 1.92%.
On the flip side, GAIL down 2.60%, DLF down 2.28%, ACC down 2.17%, BPCL down 2.10% and JP Associate down 1.75% were the major losers on the index.
European markets were trading in a mix note. France's CAC 40 rose by 0.53%, Britain's FTSE 100 advanced 0.39% and Germany's DAX down by 0.16%.
Most of the Asian equity indices reversed their initial losses and finished in the positive terrain on Tuesday as sentiments turned firm on report that French banks hold $21.3 billion in Greek government debt and the plan would give Greece more time to meet its other financial obligations. Japanese Nikkei ended the day's trade with a gain of over half a percent on growing optimism for a resolution to the Greek debt crisis, with exporter stocks supporting the market.
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