MARKETS FLAT

Indian benchmarks have started off trade on a flat note for fourth consecutive session on Thursday's morning trade as investors were waiting for decision by European Central Bank later today. The investors are also eying the first quarter results of FY13, which will be kicked off next week with Infosys. On the global front, the US markets remained closed on Wednesday on account of Independence Day holiday, unable to give any cue to the other global markets while, all the Asian markets were trading in the red at this point of time, snapping their six days gaining streak as a worsening economic crisis in Europe has overshadowed expectations that the European Central Bank will cut interest rates today. Back home, the Indian rupee fell more than a percent to 55 against the US dollar in early trade. On the sectoral front, fast moving consumer goods led the gainers pack followed by consumer durables and power while, technology, software and banking remained the major losers on the index. Meanwhile, retail stocks like Pantaloon, Shoppers Stop and Trent all rallied in the range of 5-10 percent on reports that the government is likely to revive an order allowing foreign investors to own majority stakes in Indian supermarkets and department stores after the presidential elections later this month. Moreover, the broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,038 shares on the gaining side against 553 shares on the losing side while 52 shares remained unchanged.

The BSE Sensex opened at 17,478.16; about 16 points higher compared to its previous closing of 17,462.81, and has touched a low of 17,423.45 while high remained its opening. The index is currently trading at 17,453.72, down by 9.09 points or 0.05%. There were 13 stocks advancing against 17 declines on the index.

The overall market breadth has made a positive start with 63.18% stocks advancing against 33.66% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.34% and 0.74% respectively.

The top gaining sectoral indices on the BSE were, FMCG up by 0.62%, CD up by 0.59%, Power up by 0.29%, Metal up by 0.25% and CG up by 0.22%. While, TECk down by 0.33%, IT down by 0.33%, Bankex down by 0.29%, Realty down by 0.25% and PSU down by 0.12% were the top losers on the index.

The top gainers on the Sensex were HUL up by 1.20%, BHEL up by 1.18%, M&M up by 0.88%, Sterlite Industries up by 0.81% and Hero MotoCorp up by 0.71%.

On the flip side, Bajaj Auto was down by 1.89%, GAIL was down by 1.12%, ONGC was down by 0.77%, Wipro was down by 0.77% and NTPC was down by 0.65% were the top losers on the Sensex.

Meanwhile, Government's cabinet has given its green signal to the proposal to extend one percent interest subsidy scheme for housing loans of up to Rs 15 lakh where the cost of the house does not exceed Rs 25 lakh by one year. With this approval the Union cabinet also decided to amend the operational part of guidelines for release of funds.

Former Union Finance Minister, Pranab Mukherjee, who is considered by many as the frontrunner in the race of becoming President of India, had in his Union Budget 2012-13 proposed to extend the scheme of interest subvention of one percent on housing loans up to Rs 15 lakh by another year. The proposal was put forth keeping in view the shortage of housing for low income groups in major cities and towns.

The former finance minister had made a budgetary provision of Rs 400 crore for financial year 2012-13 for implementing the interest subvention scheme. Consequent upon the extension of scheme, the limit of subsidy for an individual borrower would be Rs 14,912 for a loan of Rs 15 lakh and Rs 9925 for a loan of Rs 10 lakh. The extended scheme will benefit all house loans availed in financial year 2012-13. National Housing Bank (NHB) is the nodal agency for implementing the scheme both for Scheduled Commercial Banks and Housing Finance Companies.

According to the proposal, borrowers can only avail benefit under the scheme if cost of the house does not exceed the limit of Rs 25 lakh. Previously the government used to give interest benefit on loans of up to Rs 10 lakh provided the cost of house does not exceed Rs 20 lakh, however in 2011-12, the government liberalized the scheme and increased the loan limit to Rs 15 lakh and the cost of house to Rs 25 lakh.

The S&P CNX Nifty opened at 5,297.05; about 5 points lower compared to its previous closing of 5,302.55, and has touched a high and a low of 5,304.25 and 5,288.85 respectively.

The index is currently trading at 5,299.05, down by 3.50 points or 0.07%. There were 21 stocks advancing against 29 declines on the index.

The top gainers of the Nifty were HUL up by 1.18%, BHEL up by 1.14%, ACC up by 0.98%, Sesa Goa up by 0.98% and IDFC up by 0.94%.

On the flip side, Bajaj Auto down by 1.91%, JP Associates down by 1.35%, GAIL down by 1.27%, DLF down by 1.06% and Wipro down by 0.87%, were the major losers on the index.

All the Asian markets were trading in the red; Shanghai Composite was down by 25.26 points or 1.19% to 2200.76, KLSE Composite declined 6.35 points or 0.39% to 1607.46, Nikkei dipped by 29.15 points or 0.30% to 9074.36, Strait Times declined by 0.96 points or 0.07% to 2948.19.12, Kospi Composite shed 1.44 points or 0.10% to 1872.87, Taiwan Weighted plummeted 38.71 points or 0.52% to 7383.85, Hang Seng fell 57.02 points or 0.29% to 19652.73 and Jakarta Composite dipped 9.47 points or 0.23% 4067.27.