CAUTIOUS TRADE

After making a negative start, Indian benchmarks immediately rebounded in the morning trade with Nifty regaining its crucial 5,300 mark. Moreover, investors are likely to react to the Q4FY12 earnings of India Inc this week but, trading cautiously as it is being the F&O series expiry week. Global cues remained subdued with most Asian markets trading lower. First-round results in France's presidential election indicated a lead for the Socialist party, which is opposed to the austerity measures. However, the sentiments got some support after Chinese PMI showed the nation's manufacturing activity gained some momentum in April, coming at 49.1 in April from a final reading of 48.3 in March but still remained below the level that signifies expansion for the sixth straight month. Back home, BSE's -- Sensex -- and NSE's -- Nifty -- regained their crucial, 17,400 and 5,300 mark respectively, supported by index heavyweights Reliance Industries, ICICI Bank and L&T. On sectoral front, consumer durables witnessed the maximum gain in trade followed by capital goods and banking while, software, technology and oil and gas remained the only losers on the BSE sectoral space. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,078 shares on the gaining side against 495 shares on the losing side while 71 shares remained unchanged. Overall it was a volatile opening ahead of April F&O expiry on Thursday.

Meanwhile, stocks of Reliance Industries, country's most valued company, traded 0.44 percent higher in spite of posting 21 percent fall in fourth quarter earnings which was reported after the close of trading hours on Friday. However, Software services provider Infosys lost 1.70 percent on report that the foreign brokerage firm CLSA sent letter to the company on performance.

The BSE Sensex opened at 17,347.76; about 26 points lower compared to its previous closing of 17,373.84, and has touched a high and a low of 17,423.12 and 17,336.89 respectively.

The index is currently trading at 17,407.07, up by 33.23 points or 0.19%. There were 22 stocks advancing against 8 declines on the index.

The overall market breadth has made a strong start with 65.57% stocks advancing against 30.11% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.35% and 0.56% respectively.

The top gaining sectoral indices on the BSE were, CD up by 0.70%, CG up by 0.54%, Bankex up by 0.49%, HC up by 0.39% and Auto up by 0.39%. While IT down by 0.49%, TECk down by 0.30% and Realty down by 0.23% remained the only losers on the index.

The top gainers on the Sensex were Tata Steel up by 1.23%, Maruti Suzuki up by 0.97%, TCS up by 0.93%, L&T up by 0.78% and Cipla up by 0.75%.

On the flip side, Infosys was down by 1.71%, DLF was down by 1.22%, Jindal Steel was down by 1.08%, Hindalco was down by 0.32% and NTPC was down by 0.30% were the top losers on the Sensex.

Meanwhile, the large increases in the imports of coal have become the next cause of worry for the government. Coal imports touched the highest ever figure of $17.5 billion in last fiscal, recording a rise of a whopping 80.3%. As a result, coal imports had a significant share in India's balance of trade gap in the last fiscal.

According to official figures, demand of coal was pegged at 650 million tonnes (MT) in 2011-12 and against this, the domestic availability was estimated around 545 MT. The deficit of 105 million tonnes (MT) was met through imports. In the next five years, the shortfall has been estimated in the range of 185-265 MT, which is again aimed to be bridged by importing coal.

Coal India, the largest producer of coal in the world, has been citing lack of forest and environmental clearances as the main reason in decline of production. According to the company, as many as 180 new proposals of the company are awaiting clearances, while production in some existing coal fields has come to a halt due to imposition of Comprehensive Environmental Pollution Index rules.

Besides coal, imports of crude oil and gold have been ballooning the trade deficit and have required intervention by the Finance Minister to keep them in check. Imports of coal increased by 46.9% and that of gold and silver were up 44.4% in the last fiscal.

The S&P CNX Nifty opened at 5,277.40; about 13 points lower compared to its previous closing of 5,290.85, and has touched a high and a low of 5,305.60 and 5,274.75 respectively.

The index is currently trading at 5,300.65, higher by 9.80 points or 0.19%. There were 33 stocks advancing against 17 declines on the index.

The top gainers of the Nifty were ACC up by 1.48%, Tata Steel up by 1.34%, RInfra up by 1.16%, Maruti Suzuki up by 0.97% and TCS up by 0.97%.

On the flip side, Infosys down by 1.68%, DLF down by 1.22%, Jindal Steel down by 1.19%, RCom down by 0.64% and BPCL down by 0.60%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite was down 4.14 points or 0.17% to 2,402.72, Hang Seng was down 126.34 points or 0.60% to 20,884.30, KLSE Composite was down 6.70 points or 0.42% to 1,585.15, Nikkei 225 was up 19.14 points or 0.20% to 9,542.22, Straits Times was up 7.39 points or 0.25% to 2,987.09, Seoul Composite was up 2.12 points or 0.11% to 1,972.53 and Taiwan Weighted was down 30.66 points or 0.41% to 7,476.49.

On the flip side, Jakarta Composite was up by 6.50 points or 0.16% to 4,187.87.