CAUTIOUS

Local equity markets have protracted their somber mood to the third consecutive session as investor confidence continued to be shattered, as the admission by Greece yesterday that it would miss deficit targets fuelled further fears of a global recession. Besides that, overnight downturn on Wall Street coupled with that of the gloomy leads from regional counterparts have also disparaged the sentiment at Dalal Street. Overnight, US stocks slumped in heavy volume to a 13-month low on Monday as investors dumped bank shares on fears that Greece's worsening financial crisis could cause a large European lender to fail. Meanwhile, shares of Asian pacific region too have been abandoned by the investors for the similar reason. The US future indices trading mixed in the screen trade are providing little clues on the opening of the Wall Street. Back home, stocks from Information Technology, Oil & Gas and TECk counters bearing the maximum brunt are the weak spells in the trade. Meanwhile, stocks from Capital Goods, Consumer Durable and Metal counters are enticing some gains and have placed a lid to the losses of the bourses. The 30 share barometer index on Bombay Stock Exchange (BSE)-Sensex-plunging over 50 points is trading sub 16100 level. Meanwhile, the broadly followed 50 share index on nation Stock Exchange ( NSE)- Nifty-too trading negative is hovering close to its neutral line. However, the broader indices showcasing some resilience are afloat in green. The overall market breadth on BSE is in the favour of advances which have outpaced declines in the ratio of 1067: 940, while 97 shares remained unchanged.
The BSE Sensex is currently trading at 16,085.03, down by 66.42 points or 0.41%. The index has touched a high and low of 16,179.40 and 16,050.55 respectively. There were 13 stocks advancing against 17 declines on the index.
The broader indices were still hanging on in green; the BSE Mid cap and Small cap indices rose 0.12% and 0.03% respectively.
The top gaining sectoral indices on the BSE were, CD up by 1.30%, CG up by 0.90%, Metal up by 0.44%, Realty up by 0.35% and Power was up by 0.33%. While, IT down by 1.18%, Oil and Gas down by 1.02%, TECk down by 0.99%, Auto down by 0.59% and Bankex down by 0.40% were the only losers on the index.
The top gainers on the Sensex were Jaiprakash Associates up by 2.85%, Maruti Suzuki up by 2.21%, L&T up by 1.81%, Tata Steel up by 1.46% and BHEL up by 1.17%.
On the flip side, Tata Motors was down by 3.35%, RIL down by 1.48%, Infosys down by 1.39%, HDFC Bank was down by 1.34% and M&M down by 1.09% were the top losers on the Sensex.
Meanwhile, India's foreign direct investment (FDI) inflow surged by 127.8% to $2.83 billion in August 2011, an over two-fold jump from $1.33 billion compared to that in the same month last year.
The FDI inflow in the month of July had declined by 38% after the jump in April-June. In month of June, FDI inflows had surged by 310% to 11-year record of $5.65 billion, whereas in May it had increased by 111% to $4.66 billion compared to the same month of last year. Whereas, in April it had jumped by 43% to $3.121 billion from $2.179 billion in April 2010.
The FDI inflow in the first five months of current financial year, 2011-12 increased by 95% to $17.37 billion from $8.89 billion in the April-August 2010. Experts are of the view that, despite the slowdown in the international economies, the FDI inflows are expected to reach $35 billion in current financial year compared to $19.4 billion in the 2010-11 and $25.6 billion in 2009-10. During 2008-09, the FDI inflow stood at $27.3 billion.

In April-August 2011, the sectors which received maximum FDI are services, construction activities, power, computers and hardware, telecommunications and housing and real estate. The major sources of FDI are Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE.

The S&P CNX Nifty is currently trading at 4,836.60, lower by 12.90 points or 0.27%. The index has touched a high and low of 4,862.10 and 4,822.45 respectively.  There were 26 stocks advancing against 24 declines on the index.
The top gainers of the Nifty were Jaiprakash Associates up by 2.85%, Maruti Suzuki up by 2.14%, L&T up by 1.91%, BHEL up by 1.58% and Tata Steel up by 1.49%.
On the flip side, Tata Motors down by 3.32%, HCL Tech down by 1.87%, Reliance down by 1.54%, Gail India down by 1.49% and Infosys down by 1.41%, were the major losers on the index.
Most of the Asian equity indices were trading in the red; Hang Seng was down by 1.59%, Jakarta Composite down by 1.61%, KLSE Composite down by 0.29%, Nikkei 225 down by 1.19%, Straits Times down by 1.81%, Seoul Composite was down by 4.85%
On the flip side, Taiwan Weighted up by 0.12% was the top gainer on the index.