SOFT START

The Indian equity markets have made a lackluster opening tracking weak global cues. Globally, the US markets made a mixed closing overnight on disappointment with the Federal Reserve's decision to extend 'Operation Twist' aimed at pushing down long-term interest rates and boosting the economy. While, most of the Asian equity indices were trading in the red as the latest data showed manufacturing activity cooling further in China. Back home, the rupee fell on Thursday, coming close to a record low against the dollar, as risk assets fell on disappointment on the scope of US Federal Reserve's bond purchases. The Indian rupee depreciated by 25 paise to 56.40 as against the US dollar. Meanwhile, banking stocks were in red after rating agency Fitch downgraded the long-term foreign currency issuer default rating of the financial institutions to negative moreover, Cable and broadcasting companies like Den Networks and Hathway Cable edged lower on reports that the information and broadcasting ministry has extended the deadline for digitalization in four metros from June 30 to October 31, 2012. On the sectoral front capital goods witnessed the maximum gain in trade followed by fast moving consumer goods and consumer durables while, software, oil and gas and technology remained the top losers on the BSE sectoral space. The broader indices too were struggling to get some traction.

The BSE Sensex opened at 16,855.60; about 41 points lower compared to its previous closing of 16,896.63, and has touched a high and a low of 16880.43 and 16842.70 respectively.

The index is currently trading at 16864.99, down by 31.64 points or 0.19%. There were 11 stocks advancing against 29 declines on the index.

The overall market breadth has made a positive start. The broader indices too were trading flat; the BSE Mid cap and Small cap indices rose 0.05% and 0.10% respectively.

The top gaining sectoral indices on the BSE were CG up by 0.99%, FMCG up by 0.45%, CD up by 0.42%, Power up by 0.40% and HC up by 0.25%. While, IT down by 0.91%, Oil and Gas down by 0.82%, TECk down by 0.59%, Metal down by 0.36% and Bankex down by 0.26% were the top losers on the index.

The top gainers on the Sensex were BHEL up by 2.58%, Bharti Airtel up by 0.82%, Hero MotoCorp up by 0.71%, Tata Power up by 0.54% and L&T up by 0.54%.

On the flip side, RIL was down by 1.98%, TCS was down by 1.50%, SBI was down by 0.89%, Infosys was down by 0.82% and Coal India was down by 0.74% were the top losers on the Sensex.

Meanwhile, the Competition Commission of India (CCI) is soon expected to come out with its report on cement cartelization, which is likely to spell havoc for not less than eleven major cement manufacturers who were found guilty of being involved in price cartel, according to reports. Out of 39 cement companies, which were investigated by the competition watchdog CCI for a year on charges of price collusion and artificial scarcity, the top 11 companies by revenue will probably face the penal action.

The highest penalty prescribed in the Competition Act 2002, is 10% of three years' average turnover. It is believed that the CCI will panelize the cement manufacturers by about Rs 3,000 crore. Out of the eleven companies, UltraTech Cement, Ambuja Cements and ACC are expected to be impacted the most since they control a third of the volumes in India while others like Jaypee Cements, India Cements and Madras Cements will too have to bear hefty brunt of the penalty. The cumulative turnover of the 11 companies is estimated to be around Rs 37,500 crore.

The CCI initiated its investigation on cartelization charges after Builders Association of India (BAI), a realtors' body, alleged that the retail prices fixed by cement manufacturers were almost similar. The body complained that cement makers apart from forming a cartel to fix the commodity's retail prices at almost similar levels, also deliberately trim down production to inflate prices.

The S&P CNX Nifty opened at 5,097.35; about 23 points lower compared to its previous closing of 5,120.55, and has touched a high and a low of 5,115.80 and 5,096.50 respectively.

The index is currently trading at 5,113.95, down by 6.60 points or 0.13%. There were 24 stocks advancing against 26 declines on the index.

The top gainers of the Nifty were BHEL up by 2.65%, Siemens up by 1.88%, BPCL up by 1.75%, ITC up by 1.02% and ONGC up by 0.94%.

On the flip side, Cairn down by 2.17%, RIL down by 1.97%, TCS down by 1.75%, Ambuja down by 1.45% and Power Grid down by 1.06%, were the major losers on the index.

All the Asian equity indices were trading in the red; Shanghai Composite was down by 36.44 points or 1.59 percent to 2,256.43, Hang Seng has lost 179.84 points or 0.92 percent to 19,339.01, Jakarta Composite was down by 19.13 points or 0.47 percent to 3,924.15, Straits Times declined by 22.23 points or 0.78 percent to 2,833.45, South Korea's Kospi lost 14.66 points or 0.77 percent to 1,889.46 and Taiwan Weighted was lower by 70.46 points or 0.96 percent.

On the other hand Japan's Nikkei was up 84.38 points or 0.96 percent to 8,836.69.