MARKETS TRYING TO STABILIZE

The domestic markets have stabilized in the mid morning trade and the benchmark indices are trading flat. Though, the sentiments still remain cautious but the traders are opting value buying in the beaten down high beta sectors and the realty sector stocks have surged, closely followed by capital goods, consumer durables and the power sector stocks, at the same time IT and technology stocks are still languishing in red, witnessing some profit booking. The main spurt is seen among the retail stocks that have surged by 4-20% in the early trade after the government approved the proposal of FDI in multibrand retail. However, the best part of the trade till now is the returning fervor in the small cap and the midcap stocks, as they are outperforming their larger peers with quiet a margin.
The BSE Sensex is currently trading at 15,872.61, up by 14.12 points or 0.09%. The index has touched a high and low of 15,891.05 and 15,672.19 respectively.  There were 13 stocks advancing against 17 declines on the index.
The broader indices are outperforming the benchmarks; the BSE Mid cap and Small cap indices ascended by 1.33% and 1.41% respectively. 
The top gaining sectoral indices on the BSE were realty up by 2.64%, CG up by 2.59%, CD up by 2.50%, Power up by 1.50% and PSU was up by 0.93%. On the flip side IT index was down by 0.99%, TECk down by 0.56%, Oil & Gas down by 0.37% and Metal index was down by 0.34%
The top gainers on the Sensex were BHEL up by 4.27%, DLF up by 3.37%, L&T up by 2.51%, Cipla up by 1.84% and SBI was up by 1.53%.
The top losers on Sensex were Hero Motocorp down by 2.14%, Jindal Steel down by 2.07%, tata Steel down by 1.68%, Infosys down by 1.35% and TCS was down by 1.31%.
Meanwhile, the Union Cabinet on November 24 finally approved a proposal of up to 51% foreign direct investment (FDI) in multi-brand retail, and up to 100% FDI in single brand retail. The route has been long tapped by foreign retailers such as Wal-Mart and Carrefour to enter Asia's second fastest growing economy.
However, the proposal clearance has come with some checks; foreign investors will be required to invest up 50% of total FDI in back-end infrastructure, excluding the land cost and rentals. Retailers will also need to source at least 30% of manufactured/processed products from small industries, excluding agricultural items. The government has also retained the first right on sourcing agricultural produce. In terms of single-brand retail, the government has made 30% sourcing from SMEs mandatory once the FDI limit exceeds 51%. Not only this, the policy will allow foreign retailers to set up shop only in cities with a population of more than 10 lakh as per the 2011 Census. There are 55 such cities in India currently.

The Union Cabinet's move is likely to bolster the interest of foreign retailers in India, even as many existing joint venture (JV) partnerships between Indian and foreign retailers could get realigned. Various industry bodies have welcomed the decision of the government, FICCI president, Harsh Mariwala said, 'We welcome the long awaited move of the Government of allowing FDI in multi-brand retail. It is a step which will have positive implications for various segments like food processing, farming and SMEs. This policy initiative is expected to bring more investments not just in the front end but also in the back-end infrastructure, which would result in reduced wastages and would also help in addressing the issue of inflation over a period of time.'

Industry body ASSOCHAM said foreign investments in Indian retail sector will inject competition and efficiencies, create lakhs of new jobs across the country and reduce considerable difference in farm gate prices, wholesale prices and retail prices.
The S&P CNX Nifty is currently trading at 4,753.25, down by 3.20 points or 0.07%. The index has touched a high and low of 4,767.30 and 4,700.50 respectively.  There were 29 stocks advancing against 21 declining ones on the index.
The top gainers of the Nifty were BHEL up by 3.92%, Ranbaxy 3.85%, DLF up by 3.23%, L&T up by 2.52% and BPCL was up by 2.48%.
Hero Motocorp down by 2.34%, HCL Technology 2.15%, Jindal Steel 2.03%, Tata Steel down by 1.97% and ONGC down by 1.71% were the major losers on the index.
Barring the Japanese market all other Asian indices are trading in red Shanghai Composite was down by 0.43%, Hang Seng lost 1.29%, KLSE Composite slid by 0.91%, Straits Times plunged by 1.02%, Seoul Composite lost 0.70% and Taiwan Weighted was down by 0.47%.
On the other hand Nikkei was trading higher by 0.39%.