QUITE TRADING

Indian equity markets moderately extended early gains amid strong buying on some blue chip counters. Benchmarks held firm despite disappointing revenue and profit growth guidance by IT bellwether Infosys. Infosys shares fell close to 10% on posting 27.4% rise in quarterly profit, but forecasted lower-than-expected revenue growth for the current fiscal year due to an uncertain global economy and currency volatility. Sensex gained over 50 points, while Nifty at one week high of 5,300 level. On the sectoral front rate sensitive stocks like banks, auto, and realty were trading with gains on rate cut hopes, while IT stocks were near 2-1/2 months low as Infosys disappoints. On the global front, Asian shares pared early gains on Friday after China's first-quarter growth was slower than expected, clouding the outlook for demand, but a better-than-expected outcome for Italy's sovereign debt sale helped investors retain some risk appetite. Back home, the market breadth favoring the positive trend; there were 1,622 shares on the gaining side against 725 shares on the losing side while 112 shares remained unchanged.

The BSE Sensex is currently trading at 17,384.04, up by 51.42 points or 0.30%. The index has touched a high and low of 17,389.33 and 17,192.55 respectively. There were 27 stocks advancing against just 3 declining ones on the index.

The broader indices continued to outperform benchmarks; the BSE Mid cap and Small cap indices were trading higher by 1.05% and 0.91% respectively.

The top gaining sectoral indices on the BSE were, Auto up by 2.32%, Bankex up by 1.77%, Realty up by 1.73%, Capital Goods (CG) up by 1.70% and Health Care (HC) up by 1.64%. While IT down by 6.28% and TECk (Technology) down by 4.54% were the only losers.

The top gainers on the Sensex were Hero MotoCorp up by 3.14%, Tata Motors up by 2.87%, Maruti Suzuki by 2.62%, Bajaj Auto up by 2.59% and Sterlite Inds up by 2.49%. On the flip side, Infosys down by 9.09%, TCS down by 4.19% and Wipro down by 3.20% were the top losers on the Sensex.

Meanwhile, India has dragged the US to the World Trade Organization (WTO) over the issue of import duties levied on certain Indian steel products. It has sought consultations with the US under the WTO's dispute settlement mechanism on the countervailing duties (CVD) imposed on steel. The move has come after the informal consultations with the US failed to yield result.

Countervailing duties (CVD) are imposed by the government of a country to neutralise the subsidies on products given by the exporting nation. The US has been imposing CVD on steel exported by Indian companies in the range of 18-500%. It has also imposed anti-dumping duties, a penal levy on imports that are sold at higher prices in the home market of the exporter, of over 20%.

India has challenged the assumption made by US Department of Commerce that the iron ore sourced by Indian steel makers from NMDC is supplied at subsidised rate as it is a government body. India has argued that this is a wrong assumption as NMDC always sells at the prevailing market prices which is determined by their exports to Japan and South Korea.

The move comes just a few weeks after the US sought similar consultations with India over the import ban imposed by the country on poultry and poultry product imports because of the bird flu scare. The US had termed the ban as 'unjustified' health-safety worries. India also has plans of filing a formal complaint with the WTO over the professional visa fee hike carried out by the US.

Consultations in the WTO give the concerned parties an opportunity to discuss the matter and to find a satisfactory solution without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel.

The S&P CNX Nifty is currently trading at 5,301.55, higher by 24.70 points or 0.47%. The index has touched a high and low of 5,306.75 and 5,240.30 respectively. There were 46 stocks advancing against just 4 declines on the index.

The top gainers of the Nifty were Hero MotoCorp up by 3.11%, Reliance Infra up by 3.09%, Bajaj Auto up by 2.76%, Tata Motors up by 2.71% and JP Associates up by 2.64%.

On the flip side, Infosys down by 9.12%, TCS down by 4.29%, Wipro down by 3.46% and HCL Technology down by 2.16% were the major losers on the index.

Most of the Asian equity indices were trading in the positive terrain; Shanghai Composite up by 0.64%, Hang Seng surged by 1.69%, KLSE Composite added 0.15%, Nikkei 225 expanded by 1.16%, Straits Times shot up by 0.66%, Taiwan Weighted accumulated 1.64% and Seoul Composite gained 1.05%.

On the flip side, Jakarta Composite down by 0.02% was the lone loser among the Asian pack