TIGHT RANGE

Nothing seems to be changing for Indian equity markets as benchmark indices oscillating in a tight band are floating near their previously held levels. Although frontline indices have chopped some losses tracing Asian pacific markets, but the recovery is barely discernible. Qualms over a deal in Europe on Greek debt are mainly pressuring the markets across the globe.

Meanwhile, Asian stocks fell on Thursday after data showed inflation in China was heating up again, thereby complicating efforts by Beijing to stimulate the world's No 2 economy. Shares in Japan fell as core machinery orders, considered a key leading economic indicator, fell 7.1 per cent. The figure, which excludes the volatile shipping and electric power industries, marked a downturn from a 14.8% expansion in November. Investor sentiment hit a hurdle after China released data showing consumer prices had risen 4.5% in January over a year earlier, up from the previous month's 4.1%. Food prices jumped 10.5 per cent, driven by a 25 per cent gain in the cost of pork, the staple meat in China.

Back home, stocks from Power, Realty and Consumer Durable counters were the prominent gainers on the BSE Sectoral front, however, stocks from Information Technology, TECk and Metal counters raced ahead to negate the sentiment.

The 30 share volatile index of Bombay Stock Exchange - Sensex - offloading over 50 points was trading sub 17, 700 level. Similarly, 50 share index of National Stock Exchange - Nifty - too was trading near about to its 5350 mark, with a loss of over 15 points. However, broader indices performing consistently for the fourth consecutive session, were trading up over 0.30% each. The overall market breadth on BSE was in the favour of advances which thrashed declines in the ratio of 1349:808, while 99 shares remained unchanged.

The BSE Sensex is currently trading at 17,644.80, down by 62.52 points or 0.35%. The index has touched a high and a low of 17,685.71 and 17,609.43 respectively.  There were 13 stocks advancing against 17 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.41% and 0.55% respectively.

The top gaining sectoral indices on the BSE were, Power up by 0.77%, Realty up by 0.61%, CD and Auto were up by 0.45% each and PSU was up by 0.28%. While, IT down by 0.95%, TECk down by 0.82%, Metal down by 0.55%, CG down by 0.46% and Oil & Gas down by 0.34% were the top losers on the index.

The top gainers on the Sensex were Bajaj Auto up by 1.72%, HDFC Bank and NTPC were up by 1.30% each, BHEL up by 1.15% and Jindal Steel up by 0.95%.

On the flip side, Hindalco Industries down by 5.78%, L&T down by 1.47%, TCS down by 1.40%, Bharti Airtel down by 1.16% and ONGC down by 1.08 % were the top losers on the Sensex.

Meanwhile, inspite of the gloomy global business environment, the year 2011-12 characterizes a landmark year for the IT-BPO Industry in India, according to National Association of Software and Services Companies (NASSOCM). Aggregate revenue for the Indian IT-BPO sector is estimated to cross $101 billion in 2011-2012. Exports for the sector have grown by 16.3% to $69 billion.

However for FY13, the export revenues are expected to grow at a slightly lower pace by 11-14% while the domestic revenues will grow by 13-16%. For the last couple of years the domestic market has been growing faster than the exports sector and is likely to continue to be a key thrust area for the industry.

According to NASSCOM, the industry has been able to maintain its growth trajectory inspite of the global environment on the back of its ability to innovate and deliver differently. IT-BPO firms have matured from being service providers to strategic partners to their customers. More importantly, the industry is currently expanding into newer geographies and verticals where the growth is 1.4 times that in the mature markets.

India has retained its number one position as the world's leading sourcing location for IT-BPO services, despite the rise of several alternative sourcing locations. Global sourcing has increased to 58% in 2011 from 55% in 2010. India-based resources are estimated to account for about 60-70% of the offshore delivery capacities across the leading multinational IT-BPO players. For the year ahead, global technology spending is estimated at 4.5% and global sourcing is expected to be a major driver of technology spending.

NASSCOM estimates for FY'12-13 factors in the uncertain economic environment with delayed decision making and differentiated growth across the industry sectors and companies. The outlook is expected to be revisited later in the year when more data is available. 

The S&P CNX Nifty is currently trading at 5,351.95, lower by 16.20 points or 0.30%. The index has touched a high and a low of 5,359.80 and 5,338.90 respectively.  There were 27 stocks advancing against 23 declines on the index.

The top gainers of the Nifty were Reliance Power up by 2.60%, Cairn India up by 2.28%, Bajaj Auto up by 1.67%, Siemens up by 1.39% and NTPC up by 1.24%.

On the flipside, Hindalco down by 5.69%, L&T down by 1.55%, IDFC down by 1.34%, TCS down by 1.30% and Bharti Airtel down by 1.27% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Hang Seng was down by 0.51%, Jakarta Composite was down by 0.84%, Nikkei 225 down by 0.20%, Straits Times down by 0.01% and Seoul Composite down by 0.35%.

On the flipside, Shanghai Composite gained 0.01% and Taiwan Weighted rose by 0.14%.