CONSOLIDATION

Indian benchmarks continue to remain in consolidation mood, paring most of their gains in the late morning session. The slump in the global markets after the comments of US Fed chairman Ben Bernanke of not going for any immediate stimulus measures have disappointed the investors. On domestic front, the rupee once again depreciated against the dollar after surging to its two week high in last session, weighing down the sentiments. Meanwhile, one of the deputy governor's of the RBI has been reported saying that the apex bank's major concern was inflation and the rate cut can be done only when the inflation comes down. Back on street, capital goods, realty and metal sector stocks were still holding some gains while, IT, technology, consumer durables and auto were exerting maximum pressure on the downside. Broader indices too continue to reel in red.

The BSE Sensex is currently trading at 16,586.14, down by 62.91 points or 0.38%. The index has touched a high 16,621.32 and low 16,533.21 of respectively. There were 13 stocks advancing against 17 declines on the index. The overall market breadth on BSE was in the favour of declines in the ratio of 1086:1116, while 99 shares remained unchanged.

The broader indices were exhibiting mixed trend; the BSE Mid-cap index was down by 0.10%, while Small-cap index was up by 0.26%.

The top gaining sectoral indices on the BSE were, CG up by 0.67%, Realty up by 0.66%, Metal up by 0.16%, FMCG up by 0.07% and Power up by 0.04% while, IT down by 1.33%, TECk down by 0.91%, CD down by 0.77%, Auto down by 0.67% and HC down by 0.59% were the losers on the index.

The top gainers on the Sensex were Sterlite Industries up by 2.11%, HUL up by 1.51%, GAIL up by 0.98%, L&T up by 0.96% and HDFC Bank up by 0.59%

On the flip side, Infosys was down by 2.12%, Bajaj Auto was down by 1.75%, ONGC was down by 1.71%, Maruti Suzuki was down by 1.25% and Cipla was down by 1.18% were the top losers on the Sensex.

Meanwhile, relaxing investment norms for foreign individual investors, market regulator Securities Exchange Board of India (SEBI) permitted investors from Gulf nations to invest in the domestic stock markets. Countries, which are part of International Organization of Securities Commissions' (IOSCO) and Multilateral Memorandum of Understanding (MMOU), but are not part of the Financial Action Task Force (FATF), would be allowed to invest in India.

As per the circular, qualified foreign investors (QFI) now also include residents in a country, who is a signatory to IOSCO's MMOU or a signatory of a bilateral MOU with SEBI. Further, the total holding of an individual in the company, shall not go beyond 5% of paid up equity capital of the company, in case the person invests in the same company via both FDI and QFI route.

The QFIs are now allowed to make fresh purchases of eligible securities, out of the sale/redemption/ dividend proceeds of any of the eligible securities, which shall be held in a single demat account of the QFI. The market regulator has also extended the option of appointment of custodian of securities by the QFI, who has to be compulsorily registered with SEBI. Further, the market regulator has also removed the limit on number of days QFIs can hold funds in their respective bank accounts in India.

In January 2012, the government had allowed QFIs from 34 FATF member nations to invest in the equity market. The government, last year, created QFI category and permitted them to invest in mutual fund debt schemes initially. Further, the finance ministry with an aim to overseas investments is also organizing road shows in five Gulf nations, including Kuwait and the UAE, in June 10-14, 2012.

The S&P CNX Nifty is currently trading at 5,028.65, down by 21.00 points or 0.42%. The index has touched a high and low of 5,044.25 and 5,012.65 respectively. There were 20 stocks advancing against 30 declines on the index.

The top gainers of the Nifty were Reliance Infra up by 3.10%, STER up by 2.42%, GAIL up by 1.64%, HUL up by 1.47% and LT up by 1.00%. On the flip side, Cairn down by 2.21%, INFY down by 2.20%, ONGC down by 1.88%, Asian Paint down by 1.52% and Grasim down by 1.40% were the major losers on the index.

All Asian equity indices were trading in the red; Jakarta Composite down 0.25%, Straits Times Index down 0.75%, Taiwan Weighted down 1.14%, Nikkei 225 down 2.09%, KLSE Composite down 0.25%, KOSPI Composite Index down 0.67%, Shanghai Composite down by 0.26% and Hang Seng Index was down 0.71%.