TRADING IN GREEN

Showcasing reversal of trend, Indian equity markets shaving all the losses have entered into the green territory, as positive opening of the European markets, underpinned the sentiment at Dalal Street.  Further, the uptake of Technology and Bankex counters, besides Metal and Information space, also did some good to the bourses. The benchmark 30 share index, Sensex, adding over quarter of points, is currently trading comfortable above the 17100 psychological level, while the 50 share index, Nifty, on NSE, too managed to gain some traction, to appear closer to 5200 crucial level. Meanwhile, broader indices exhibited mixed trend.

Meanwhile, annual rate of inflation, based on the consumer prices index (CPI) in India, too easing in the month of June to 10.02 percent as compared to 10.36 percent for the previous month of April 2012, added to bourses vigor.

On the global front, European shares showcasing resilience too started positively despite the downbeat assessment of the U.S. economy by Federal Reserve Chairman Ben Bernanke with no signals of an imminent move toward further quantitative easing. However, mostly negative trend of Asian pacific indices, kept the uptrend limited.

Closer home, sentiment were also bolstered on account of bang in line Q1 earnings reported by Country's second largest two-wheeler maker major, Bajaj Auto, which registered 1% rise in June's quarter net profit at Rs 718 crore for the quarter ended June 2012, on y-o-y basis.  The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1341:1098, while 133 shares remained unchanged.

The BSE Sensex is currently trading at 17,134.53, up by 29.23 points or 0.17% after trading as high as 17,147.75 and as low as 17,038.59. There were 16 stocks advancing against 14 declines on the index.

The broader indices were exhibiting mixed trend; the BSE Mid cap index gained 0.06% and Small cap indices down by 0.04% respectively.

The only gainers on the BSE sectoral space were, Metal up by 0.77% and IT up by 0.36%, TECk up by 0.14% and Bankex up by 0.10%. On the flip side, Auto down by 0.47%, CD down by 0.42%, Oil & Gas down by 0.30%, Realty down by 0.14% and Public Sector Undertaking (PSU) down by 0.11%, were top the losers on the index.

Tata Power up by 2.56%, Coal India up by 1.90%, Coal India up by 1.52%, ICICI Bank up by 1.29% and Sterlite Industries up by 1.09% were the major gainers on the Sensex, while Tata Motors down by 1.79%, NTPC down by 1.11%, Hero MotoCorp down by 0.95%, BHEL down by 0.93% and SBI down by 0.86% were the major losers on the index.

Meanwhile, the annual rate of inflation, based on the consumer prices index (CPI) in India, eased in the month of June to 10.02 percent, in line with the trend shown by wholesale price index (WPI) inflation. According to the data released by Central Statistics Office, provisional annual inflation rate based on all India general CPI (Combined) for June 2012 on point to point basis stood at 10.02 percent as compared to 10.36 percent for the previous month of April 2012.

According to the Ministry of Statistics and Programme Implementation, which released the monthly provisional CPI on Base 2010=100 along with annual inflation rates for June 2012, all India provisional General (all groups), CPI numbers of June 2012 for rural, urban and combined were at 120.6, 118.5 and 119.7 respectively, The corresponding inflation rates for rural and urban areas for June came in at 9.74% and 10.44% respectively as against May's  9.57% and 11.52%, respectively, which indicated that the rate of price rise rose in rural areas while that in the urban areas eased slightly.

Although the India's annual consumer price inflation slowed slightly in June, but food prices accelerated as concerns about below-average monsoon rains gained momentum. Food inflation in the CPI accelerated to 10.71% in June from 10.66% in May. However, unlike most central banks, the Reserve Bank of India uses wholesale inflation in its policy formulation, as annual consumer price inflation data was only launched this year in January. India's wholesale price index rose to a lower-than-expected annual 7.25 percent in June, its slowest rate since January.

The S&P CNX Nifty is currently trading at 5,197.25, up by 4.40 points or 0.08% after trading as high as 5,204.20 and as low as 5,169.05. There were 25 stocks advancing against 25 declines on the index.

The top gainers on the Nifty were Tata Power up by 2.72%, Bajaj Auto up by 2.07%, Sesa Goa up by 1.70%, Coal India up by 1.61% and Reliance Infra by 1.55%.  While PNB down by 2.35%, Tata Motors down by 2.01%, BHEL down by 1.17%, NTPC down by 1.80% and Bank of Baroda down by 1.13% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Kospi Composite plunged by 1.48%, Strait Times lost 0.31%, Taiwan Weighted descended by 1.09%, Hang Seng index plunged by 1.19%, Jakarta Composite was up 0.01% and Nikkei 225 down 0.32%.

While Shanghai Composite added 0.37% and KLSE Composite gained 0.22% were the lone gainers amongst the Asian pack.

European markets showcasing resilience, started on a positive note; CAC 40 up by 0.84%, DAX added 0.25% and FTSE 100 too gained 0.17%.