FLAT AGAIN

Key domestic bourses have opened flat for third consecutive session on Thursday as investors remained on the sideline ahead of the June F&O series expiry. Globally, investors remained cautious ahead of European Union summit scheduled for June 28-29 in Brussels. The US markets ended higher overnight on getting upbeat economic data and rising oil prices while, Asian markets is exhibiting mixed trends at this point of time with most markets hardly budging from their previous closing levels. Back home, Sensex and Nifty recaptured their crucial 17,000 mark and 5,150 mark respectively. Meanwhile, the Indian rupee too has been moving around the 57 mark against the US dollar despite the announcement of measures to cap rupee's slide by the Reserve Bank of India. Power witnessed the maximum gain in trade followed by capital goods and metal while technology remained the lone loser on the BSE sectoral space. The broader indices were also trading with great traction. Meanwhile, Power stocks continued to witness buying consecutively for the second day. Stocks like Lanco Infra, Torrent Power and Tata Power rallied in the early trade after Delhi Electricity Regulatory Commission hiked power tariffs in Delhi that would be effective from July 1. Domestic prices went up by 24% and commercial prices up by 19.5%. The market breadth on the BSE was positive; there were 974 shares on the gaining side against 411 shares on the losing side while 78 shares remained unchanged.

The BSE Sensex opened at 16,985.58; about 18 points higher compared to its previous closing of 16,967.76, and has touched a high and a low of 17,023.64 and 16,982.85 respectively.

The index is currently trading at 17,016.91, up by 49.15 points or 0.29%. There were 22 stocks advancing against 8 declines on the index.

The overall market breadth has made a strong start with 66.58% stocks advancing against 28.09% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.59% and 0.51% respectively.

The top gaining sectoral indices on the BSE were, Power up by 0.95%, CG up by 0.66%, Metal up by 0.59%, PSU up by 0.58% and Realty up by 0.44%. While, IT down by 0.04% remained the lone loser on the index.

The top gainers on the Sensex were NTPC up by 1.81%, Tata Motors up by 1.69%, ICICI Bank up by 0.98%, Sterlite Industries up by 0.90% and L&T up by 0.82%.

On the flip side, Tata Motors down by 0.84%, Wipro down by 0.54%, TCS down by 0.52%, GAIL down by 0.45% and Sun Pharma down by 0.38% remained the top losers on the Sensex.

Meanwhile, looking at the poor monetary and fiscal policy of the government, Nomura has cut India's economic growth forecast to 5.8 percent from 6.7 percent; this comes as a result of weak market conditions and lack of government initiative. It has also reduced India's GDP forecast to 6.6 percent in 2013-14 from 6.9 percent earlier. The government is targeting a GDP growth rate at about 7.6 percent is this fiscal year. India's economic growth rate has slowed down to 6.5 in 2011-12 from that of 8.4 percent in the last two fiscals, as India's monetary and fiscal policy are stagnant and in doldrums. Due to persistent high inflation the government has not been able to cut interest rates, which has affected the liquidity situation in the economy.

Nomura further opined that the longer Asia's third largest economy stays in current crisis amid lack of reforms the government will have to employ even bigger measures to get the economy back on the higher growth trajectory. The Japanese brokerage firm has upwardly revised its wholesale price index (WPI) based inflation forecast to 7.6 percent in the current fiscal from the previous fiscal of 7.1 percent due to high food prices and depreciation of rupee.

It also revised upward India's fiscal deficit to 5.8 percent of GDP in the current fiscal from 5.2 percent earlier. The government is trying to bring down the fiscal deficit to 5.1 percent in the year 2012-13 from 5.8 percent in the previous fiscal year. Nomura's decision to cut India's growth forecast comes after credit rating agency Moody retained a stable rating on India.

The S&P CNX Nifty opened at 5,148.95; about 7 points higher compared to its previous closing of 5,141.90, and has touched a high and a low of 5,157.35 and 5,145.75 respectively.

The index is currently trading at 5,156.05, higher by 14.15 points or 0.28%. There were 36 stocks advancing against 14 declines on the index.

The top gainers of the Nifty were NTPC up by 1.68%, Siemens up by 1.63%, Tata Power up by 1.43%, JP Associates up by 1.37% and ICICI Bank up by 1.11%.

On the flip side, IDFC down by 1.77%, Axis Bank down by 1.40%, HCL Tech down by 1.18%, Tata Motors down by 0.84% and TCS down by 0.54% remained the top losers on the index.

Asian equity indices were trading on a mixed note; Hang Seng Index rose 37.00 points or 0.19% to 19,213.95, Nikkei 225 surged 79.72 points or 0.91% to 8,810.21, Straits Times Index gained 6.25 points or 0.22% to 2,847.85 and Taiwan Weighted added 2.78 points or 0.18% to 7,195.79.

On the other hand, Shanghai Composite eased 1.55 points or 0.07% to 2,215.38, Jakarta Composite declined 9.28 points or 0.24% to 3,925.59, KLSE Composite shed 6.95 points or 0.43% to 1,594.94 and KOSPI Composite Index fell 3.55 points or 0.20% to 1,814.10.