CONSOLIDATION

Indian equity markets after getting a quiet yet positive start have now peeled most of its gains, with the 30 share sensitive index- Sensex-even trading in the "red zone". Global uncertainties which have been prevailing for a while now have been sapping investor's confidence into riskier equities, thereby prompting them to place the stocks on sword. However, investor's which remained unconvinced that euro zone leaders have a coherent plan to tackle the bloc's sovereign debt problems, which could trigger a new banking crisis, also preferred to stay at the bay ahead of the monthly inflation data. In line with the regional counterparts, the local equities also descended in early trade tracking the regional counterparts which edged lower brushing aside the positive cues from the Wallstreet. US stocks rose on Tuesday as investors bought beaten down shares in recent weeks amid hopes that European leaders would take action soon to ease the two-year-old sovereign debt crisis.  The US future indices too were showing a downtick in the screen trade. Back home, stocks from Information Technology, TECk and Metal counters were toiling hard to hold back the gains of the bourses. However, the stocks belonging from the Capital Goods, Power and Fast Moving Consumer Goods counters had surrendered the most to the weakness. Sensex- shedding over 30 points were trading lower sub 16500 mark, while 50 share index despite holding gains albeit slender was trading sub 5000 mark. The broader indices were trading mixed, with the Midcap index falling below the neutral line, while the Smallcap index edging higher over 0.30%. The overall market breadth was in the favour of declines which outpaced advances in the ratio of 1292:827, while 91 shares remained unchanged.
 The BSE Sensex is currently trading at 16,431.99, down by 35.45 points or 0.22%. The index has touched a high and low of 16,551.59 and 16,396.14 respectively.   There were 13 stocks advancing against 17 declines on the index.
The broader indices were trading mixed; the BSE Mid cap Index was down by 0.01% and Small cap index rose 0.32%.
The top gaining sectoral indices on the BSE were, IT up by 1.94%, TECk up by 1.11%, Metal up by 0.38%, Auto up by 0.25% and PSU up by 0.21%. While, CG down by 0.99%, Power down by 0.50%, FMCG down by 0.47%, Bankex down by 0.45% and Realty down by 0.24% were the only losers on the index.
The top gainers on the Sensex were Wipro was up by 2.53%, Infosys up by 2.52%, Tata Motors was up by 1.72%, TCS up by 1.43% and Mahindra & Mahindra was up by 1.20%.
On the flip side, Tata Power down by 1.87%, Bharti Airtel down by 1.44%, Maruti Suzuki down by 1.40%, Cipla down by 1.38% and L&T down by 1.31% were the top losers on the Sensex.
Meanwhile, the e-auction of iron ore stocks in Karnataka, directed by the monitoring committee constituted by the Supreme Court, will start from today, to enable the iron ore-starved steel and allied industries to buy iron ore stockpile lying at various mines in Karnataka. The Metal Scrap Trade Corporation Limited (MSTC), a government owned firm will conduct e-auction via its portals to clear 25 million tonnes of iron ore stock from Bellary, Chitradurga and Tumkur district in the next few months. On an average a quantity of 1.5 million tonnes per month will be sold through e-auctions, said H R Srinivasa, director, Mines and Geology.
After the recommendations of Central Empowered Committee (CEC), Supreme Court had imposed blanket ban on iron ore mining in Karnataka. The CEC detected illegal mining of iron ore in three districts resulting in environmental damage. However, the apex court had also pointed that the stockpile of 25 million tonnes of iron ore can be released in a calibrated manner so that the steel makers are not starved of raw material.
For actuations of iron ore apex court allowed government owned National Mineral Development Corporation (NMDC) to operate two of its mines in Sandur taluk of Bellary and produce one million tonnes of iron ore a month to meet steel industry's needs.
The apex court had also appointed a committee for supervision and transportation of existing iron ore. It has asked the three member committee to ensure that iron ore stocks auctioned are not exported. 'It is only to meet the requirements of the steel, sponge iron, pig iron, pellitilisation and beneficiation plants,' the apex court said.
The lease-wise and grade-wise prices of iron ore has been fixed on the bases of latest sale price obtained by NMDC. Whereas, selling the iron ore stock, the Supreme Court has directed Karnataka state government to charge royalty at 10% of the ongoing market price of iron ore and asked NMDC to maintain an account of the amount paid.  It also said that the amount generated by the sale of auction shout not be distributed presently to mining leases which were found involved in illegal mining while only 80% of amount should be advanced to other lease holders and rest 20% be retained with the government.
The S&P CNX Nifty is currently trading at 4,945.75, higher by 4.80 points or 0.10%. The index has touched a high and low of 4,969.70 and 4,919.65 respectively. There were 27 stocks advancing against 23 declines on the index.
The top gainers of the Nifty were Infosys up by 2.80%, HCL Tech up by 2.65%, Wipro up by 2.40%, Gail India up by 2.21% and Reliance Capital up by 1.93%.
On the flip side, Tata Power down by 1.75%, Maruti down by 1.56%, Bharti Airtel down by 1.48%, L&T down by 1.30% and Cipla down by 1.29% were the major losers on the index.

All the Asian equity indices were trading in the red; Hang Seng down by 1.34%, Jakarta Composite was down by 1.75%, KLSE Composite was down by 0.55%, Nikkei 225 was down by 1.16%, Straits Times was down by 0.57%, Seoul Composite was down by 2.96% and Taiwan Weighted was down by 2.35%.

On the flip side, Shanghai Composite was up by 4.10 points or 0.17% at 2475.41 in the Asian pack.