STOCK SPECIFIC BUYING

Following a weak start and subsequent fall, Indian equity markets recovered some lost ground amid some stock specific buying. The Sensex, though has lost 96 points, while Nifty was down over 30 points. In currency markets rupee was trading lower against American currency amid increase in dollar demand from defence and oil companies. On sectoral auto, metal and consumer durable stocks were trading in green, while all other sectors continue to languish in the red. Meanwhile, SAIL has strengthened as the cabinet approved divestment of 10% stake in the company. At CMP, the government will raise Rs 4,150 crore through divestment route. In global markets, Asian shares were also trading weak. Back home, the market breadthwas  favoring negative trend; there were 1046 shares on the gaining side against 1315 shares on the losing side while 141 shares remained unchanged.

The BSE Sensex is currently trading at 17181.91 down by 96.94 points or 0.56% after trading as high as 17275.20 and as low as 17142.13. There were 8 stocks advancing against 22 declines on the index.

The broader indices were trading in red; the BSE Mid cap and Small cap index were down by 0.05% each.

The top gainers on the BSE sectoral space were, CD up by 0.41%, Metal up by 0.21% and Auto up by 0.14%, while Oil & Gas down by 0.95%, Bankex down by 0.84%, CG down by 0.75%, Realty down by 0.57%, and Health Care down by 0.52% were top losers on the index.

Bajaj Auto up by 1.73%, TCS up by 1.64%, Jindal Steel up by 1.16%, Coal India up by 0.54% and HUL up by 0.44% were major gainers on the Sensex, while Dr Reddys Lab down by 2.69%, BHEL down by 1.75%, Sterlite Inds down by 1.42%, Tata Power down by 1.34% and ONGC down by 1.26% were major losers in the index.

Meanwhile, keeping the long pending demand of domestic power equipment manufacturers, the union cabinet has finally decided to slap 21% duty on imports of power equipment. The Cabinet has approved 5% basic customs duty, 12% counter-veiling duty and 4% special additional duty on import of power gear.

In May, the Cabinet had deferred the decision on imposition of duty on power equipment. Earlier this month, on Prime Minister's Office direction, the Power Ministry had floated a proposal seeking higher duty on import of equipment for the power sector. There were differences on the quantum of basic customs duty that can be slapped on overseas power gear among three ministries -- Power, Commerce and Industry, and Heavy Industry, while the Power Ministry pitched for 5% customs duty, Commerce and Heavy Industry ministries sought 15% and 10% respectively.

At present, equipment imported for projects of less than 1,000 MW capacity attract 5% customs duty, while those above that enjoy exemption. The latest decision was taken mainly to protect domestic companies from cheap Chinese shipments and it has been hailed by the Indian manufacturers, they have stated that imposing 21% import duty on power equipments will help level the playing field for Indian companies. On the same time the power generating companies have expressed disappointment at the decision and said that the move would raise equipment prices and raise electricity tariffs.

The S&P CNX Nifty is currently trading at 5,209.80, down by 32.90 points or 0.63% after trading as high as 5,238.70 and as low as 5,197.50. There were 15 stocks advancing against 35 declines on the index.

The top gainers on the Nifty were Bajaj-Auto up by 2.08%, TCS up by 1.77%, Jindal Steel up by 1.16%, Asian Paint up by 0.97% and Maruti up by 0.96%. While DR Reddy down by 2.97%, Kotak Bank down by 2.70%, BHEL down by 2.24%, Sterlite down by 1.65% and BPCL down by 1.47% were the major losers on the index.

Asian equity indices were trading on a mix note ; KLSE Composite up 0.09%, Taiwan Weighted up  0.23%  and Jakarta Composite was up by 0.01% While, Hang Seng index down by 0.06%, Nikkei 225 down 1.43%, Straits Times down 0.55%, Kospi Composite Index down 0.03 points and Shanghai Composite down 0.55%  were the only losers in the Asian pack.