SEE - SAW TRADE

Indian equity markets witnessing seesaw trade and currently flat in positive territory as banks recovered after recent steep falls. NSE's Nifty was moving in a narrow range of 5,225-5,250 since beginning of trade today. On the sectoral front banking sector lost 2.9 percent over the previous two trading sessions, hit by a combination of worries about earnings and uncertainty about interest rates ahead of the central bank meeting next week. Oil and gas stocks dropped after a directive from a government regulator to cut gas tariffs in New Delhi raised fears that similar actions would follow. On the global front, Asian shares were trading mixed amid lingering concerns about global economic outlook. Back home, the market breadth favoring the negative trend; there were 1,104 shares on the gaining side against 1,147 shares on the losing side while 142 shares remained unchanged.

The BSE Sensex is currently trading at 17,229.22, up by 7.08 points or 0.04%. The index has touched a high and low of 17,274.69 and 17,157.27 respectively. There were 14 stocks advancing against 16 declines on the index.

The broader indices shaved off gains and moved in red; the BSE Mid cap and Small cap indices were down by 0.43% and 0.24% respectively. 

The few gaining sectoral indices on the BSE were Fast Moving Consumer Goods (FMCG) up by 1.42%, Realty up by 0.54%, Auto up by 0.53%, Capital Goods (CG) up by 0.23% and Health Care (HC) up by 0.17%. While, Oil and Gas down by 0.75%, Metal down by 0.67%, IT down by 0.62%, PSU down by 0.56% and TECk down by 0.48% were the top losers on the index.

The top gainers on the Sensex were Hindustan Unilever up by 1.66%, Tata Motors up by 1.65%, Sun Pharma up by 1.64%, ITC up by 1.63% and Tata Power up by 1.59%.

On the flip side, GAIL India down by 3.03%, Tata Steel down by 1.25%, Infosys down by 1.16%, ONGC down by 1.10% and HDFC Bank down by 1.07% were the top losers on the index.

Meanwhile, the government has decided not to allow any further exports of cotton in the current marketing year also, the already registered export orders will be executed only after proper scrutiny and revalidation. A Group of Ministers (GoM), headed by Finance Minister Pranab Mukherjee, that met on April 09 has decided not to allow any fresh registration for cotton exports. The decision has come at a time when the government is facing severe criticism for its ban on exports and pressure has been mounting from Gujarat to allow fresh registrations.

In an earlier move on March 5, the government had banned all future exports of cotton stating a shortage in domestic supply and a tendency of hoarding by mills in foreign locations. However, the ban faced severe criticism from all quarters and was partially lifted on March 12, 2012. Exports of the already registered orders were allowed post their proper scrutiny.

However, on April 9, it has been decided that given the domestic demand supply situation and the stocking need of the Cotton Association of India (CAI), no further registrations shall be entertained. Also the Registration Certificates issued during January and February are being scrutinized to find out whether there are any 'fictitious' export transactions. As per the Commerce Secretary, Rahul Khullar, over 85% of cotton exports go to China and there is evidence of stockpiling there.

Cotton prices have remained firm over the past few days in expectation of the ban being lifted. Shankar 6 variety was being quoted at 34,000 a candy of 356 kg each against 32,000 candy a fortnight ago. The Cotton Corporation of India had to suspend its procurement services in Andhra Pradesh in the past week since prices ruled above the minimum support price of 3,300 a quintal.

The S&P CNX Nifty is currently trading at 5,240.50, up by 6.10 points or 0.12%. The index has touched a high and low of 5,255.80 and 5,218.30 respectively. There were 23 stocks advancing against 27 declines on the index.

The top gainers of the Nifty were Tata Power up by 1.95%, Tata Motors up by 1.74%, ITC up by 1.74%, Sun Pharma up by 1.72% and Hindustan Unilever up by 1.62%, while GAIL down by 2.99%, Sesa Goa down by 1.82%, BPCL down by 1.65%, Ranbaxy down by 1.63% and Dr Reddy's Lab down by 1.48% were the major losers on the index.

Asian equity indices were trading mixed; Jakarta Composite gained 0.11%, KLSE Composite added 0.29%, Straits Times rose 0.32% and Taiwan Weighted up by 0.52%. On the flip side, Nikkei 225 down by 0.09%, Shanghai Composite slid 0.70%, Hang Seng plunged 1.17%, and Seoul Composite slid 0.13%.