MARKETS REMAIN FLAT

The Indian equity markets continue trading flat but in the positive territory in the late morning session. The investors have got some respite with slight moderation in inflation data. Food articles inflation came at 9.55% versus 10.05% (WoW) while fuel group inflation remains unchanged at 12.55% (WoW). However Primary articles inflation for week ended August 27 has increased at 13.34% versus 12.93% (WoW). The markets are remaining cautious ahead of US President's speech due later today where the President is expected to highlight ways to boost hiring also the Federal reserve Chairman Ben Bernanke's speech in Minnesota is eyed, where he is likely to lay out ways in which the US central bank will revive the economy. Back home, on sectoral front Oil, metal, FMCG and bank stocks were exhibiting some weakness, while information technology and healthcare stocks were moving higher. Capital goods pared its early losses and were trading higher now. Realty, power and automobile stocks were trading cautiously. PSU stocks were mostly flat.  On the global front, most of the Asian markets were trading in green. Back home, the market breadth was still favoring the positive trend; there were 1586 shares on the gaining side against 822 shares on the losing side while 85 shares remained unchanged.
The BSE Sensex is currently trading at 17,093.25, up by 28.25 points or 0.17%. The index has touched a high and low of 17,125.84 and 16,987.37 respectively.  There were 15 stocks advancing against 15 declining one's on the index.
The broader indices continued their outperformance; the BSE Mid cap and Small cap indices were up by 0.55% and 0.91% respectively.  
IT up by 2.02%, TECk up by 1.38%, HC up by 1.00%, CG up by 0.99% and CD up by 0.76% were the top gaining sectoral indices on the BSE. While, Oil and Gas down 0.45%, Metal down by 0.30%, FMCG down by 0.16% and Bankex down by 0.05% remained the top losers on the index.
The top gainers on the Sensex were Wipro up by 3.73%, Infosys up by 2.17%, Sun Pharma up by 1.57%, Tata Motors up by 1.57% and TCS up by 1.28%.
Jaiprakash Associates down by 1.82%, HDFC Bank down by 1.40%, Bajaj Auto down by 1.32%, Jindal Steel down by 0.75% and Tata Power down by 0.69% were the top losers on the index.
Meanwhile, the Minister of State for Commerce and Industry Jyotiraditya Scindia on September 7 ruled out any extension of popular export incentive scheme beyond September 30. He said, 'the government has taken a view not to extend the Duty Entitlement Pass Book (DEPB) Scheme beyond September 30, 2011.'
Exporters from different sectors have been lobbying hard with the government for extension of DEPB Scheme. Around 54 export organizations, industrial associations and companies on individual basis have approached commerce ministry for the continuation of DEPB scheme.
Under the 14-year old tax refund scheme, which entails a yearly outflow of Rs 8,500 crore from the exchequer, exporters get the reimbursement from government for taxes paid on the import content of their export products. Because of this, the scheme is popular among exporters specially sectors like engineering, automobile and chemicals.
In the meantime, Anand Sharma, Commerce and Industry Minister on September 7 met Finance Minister Pranab Mukherjee. Both the ministers are understood to have discussed the different issues including DEPB scheme. The commerce ministry is working on the alternative mechanism to encourage exporters.  

India's export performance has been impressive in the current financial year. During April-July 2011 India's exports surged by 54% to $108.3 billion from 70.36 billion in April-July 2010. However, this surge in export is less likely to maintain its momentum for the rest of financial year on the back of global uncertainties.

The S&P CNX Nifty is currently trading at 5,132.90, down by 8.2 5 points or 0.16%. The index has touched a high and low of 5,140.70 and 5,098.25 respectively.  There were 24 stocks advancing against 26 declines on the index.
The top gainers of the Nifty were Ranbaxy up by 4.79%, Wipro up by 3.88%, Infosys up by 2.14%, Cairn India up by 2.09% and Sun Parma up by 1.63%.
The top losers of the index were JP Associates down by 1.68%, SAIL down by 1.65%, GAIL down by 1.26%, Ambuja Cement down by 1.26% and Bajaj Auto down by 1.25%.
Most of the Asian equity indices were trading in the green; Jakarta Composite was up by 0.43%, KLSE Composite was up by 0.09%, Nikkei 225 was up by 0.27%, Straits Times was up by 0.13%, Seoul Composite was up by 0.41%, Shanghai Composite was up by 1.84% and Taiwan Weighted was up by 0.26%.
On the flip side, Hang Seng which edged lower by 0.39% was the only loser in the Asian pack.