BOUNCE BACK

Local equities after recovering modest portion of the heavy losses recorded in the previous session, by opening on an optimistic note on Tuesday have enticed some more gains as easing concerns about Europe's deepening debt woes after a report that Italy could get financial support from China spurred buying across the board. Investor's risk appetite appeared to be returning back on track after the reports stated Italy's Finance Ministry held talks with China's sovereign-wealth fund and other Chinese officials in a bid to persuade Beijing to buy large amounts of Italian bonds in order to aid the beleaguered European government bond markets. Further, overnight gains of Wallstreet coupled with an green start of the Asian indices also bolstered the momentum on Dalal Street. The US future indices too were showing an uptick in the screen trade. Back home, frenzied buying took all the 13 sectoral indices soaring above in the green trajectory, however, stocks from Realty, Information Technology and TECk counters did the most to fuel the uptrend. The 30 scrip sensitive index- Sensex- after registering gains in triple digit was trading above the 16500 mark. Meanwhile, the 50 share index -Nifty- gaining over 50 points was trading comfortable above the 5000 mark. The broader indices too lured gains of over 1%. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1528:572, while 74 shares remained unchanged.

The BSE Sensex is currently trading at 16,691.38, up by 189.64 points or 1.15%. The index has touched a high and low of 16,724.31 and 16,618.17 respectively. There were 26 stocks advancing against just 4 declines on the index.
The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices rose 1.22% and 1.09% respectively.
Buying was witnessed across the board. However, the top gaining sectoral indices on the BSE were, Realty up by 2.47%, IT up by 2.18%, TECk up by 1.91%, Metal up by 1.70% and Power up by 1.40%.
The top gainers on the Sensex were Jaiprakash Associates up by 3.48%, DLF up by 2.61%, TCS up by 2.30%, Wipro up by 2.28% and Cipla was up by 2.12%.
On the flip side, ONGC was down by 0.92%, HUL was down by 045%, Sun Pharma was down by 0.41% and Hero Motocorp down by 0.05% the only losers on the Sensex.
Meanwhile, the Ministry of Finance on September 12, relaxed the norms for the Foreign Institutional Investors (FII), and increased the FII investment limit in the long term corporate bonds in the infrastructure sector in India. 'The government in consultation with the regulators had raised the limit for FII investment in long-term corporate bonds issued by the companies in the infrastructure sector from $5 billion to $25 billion,' a finance ministry statement said. 
In this years' budget, the government had raised the limit of the FII in corporate bonds of duration longer than five years issued by infrastructure companies by $5 billion to $25 billion, with the minimum lock in period of three years. As per the finance ministry statement, the market regulator SEBI is expected to issue the change in norms by October 15.
Now FIIs can invest upto $5 billion in the long term infra bonds which have an initial maturity of five years or more at the time of issue with a residual maturity of one year at the time of first purchase by such investors, with a lock-in period of one year. FIIs can trade theses bonds among themselves but they cannot sell to domestic investors in the lock-in period of one year.
Earlier in August, the Securities and Exchange Board of India (SEBI) had allowed Qualified Foreign Investors (QFIs) to purchase $3 billion of debt funds that invest in at least five years infra related debt. The remaining $17 billion limit will be available to FIIs for investment in long term infra bonds which have early maturity of five years or more at the time of first issue and residual maturity of three years at the time of first purchase by FIIs, with a lock-in period of three years.
The government is aiming to increase the investment in infra sector by simplifying the norms for foreign investors, as it is aiming to invest around $1 trillion in country's infrastructure sector to maintain the current rate of growth. 'Infrastructure will play a key role in achieving our growth target of 9%. Our effort is to double the investment of $500 billion in the 11th Five Year plan to around $1 trillion in the 12th plan,' the Prime Minister said.
The S&P CNX Nifty is currently trading at 5,005.65, higher by 58.85 points or 1.19%. The index has touched a high and low of 5,014.95 and 4,976.35 respectively. There were 45 stocks advancing against just 5 declines on the index.
The top gainers of the Nifty were Jaiprakash Associates up by 3.69%, Reliance Capital up by 3.48%, Reliance Infra up by 3.36%, RCom up by 3.05% and HCL technologies up by 2.90%.

On the flip side, ONGC down by 0.88%, Sun Pharma down by 0.72%, HUL down by 0.43%, BPCL down by 0.27% and Hero Motocorp down by 0.24% were the only losers on the index.

Most of the Asian equity indices were trading in the green; Jakarta Composite up by 0.38%, KLSE Composite was up by 0.25%, Nikkei 225 was up by 1.05% and Straits Times was up by 1.19%.
On the flip side, Shanghai Composite was down by 1.43% and Taiwan Weighted was down by 2.64%.