GAINS TRIMMED

Indian equities have trimmed gains and were trading in green in the late morning session. On the global front, the majority of Asian markets were trading in green, on expectations that China will ease monetary policy and amid signs the US economy is strengthening. Back home, annual rate of inflation, based on the consumer prices index (CPI) in India, eased marginally in the month of July to 9.86 percent. Traders were seen piling up position in IT, TECk and Auto sector, while selling was witnessed in Metal, CD and Bankex sector. Infosys, TCS and Wipro from IT pack were seen trading firm in green driving the markets higher. Tata Motors, Mahindra & Mahindra, Bajaj Auto and Maruti Suzuki from Auto space were trading in green edging the markets higher. On the other hand, Tata Steel, Coal India, Sterlite Industries and Hindalco Industries from Metal pack were trading in red drifting markets lower. In the scrip specific development, Bilcare gained on inking definitive agreement with United Drug plc. Wockhardt jumped on receiving USFDA approval for generic version of Parkinson's drug. The NSE Nifty and BSE Sensex were managing to hold their psychological 5350 and 17700 levels respectively.

The market breadth on BSE was positive in the ratio of 1297:841 while 99 scrips remained unchanged.

The BSE Sensex is currently trading at 17773.44 up 82.36 points or 0.47% after touching a high of 17815.76 and low of 17705.14. There were 18 stocks advancing against 12 declines on the index.

The broader indices were trading on a mixed; the BSE Mid cap index was down by 0.06%, while Small cap index was up by 0.46%.

On the BSE sectoral space, IT up by1.88%, TECk up by 1.40%, Auto up by 0.94%, Oil & Gas up by 0.37% and Realty up by 0.26% were the gainers while Metal down by 0.51%, CD down by 0.06%, Bankex down by 0.40%, CG down by 0.11% and FMCG down by 0.09% were the only losers on the index.

Infosys up by 2.92%, Cipla up by 2.07%, Tata Motors up by 1.73%, TCS up by 1.68%, Mahindra & Mahindra up by 1.38% were the major gainers on the Sensex, while Hindalco Industries down by 2.81%, Tata Steel down by 1.55%, HDFC Bank down by 0.93%, Hero MotoCorp down by 0.84% and Coal India down by 0.74% were the major losers on the index. 

Meanwhile, amid slowing economic activity and domestic taxation issues, the foreign direct investments (FDI) to Indian services sector have dipped by 18% to $745 million (about Rs 4,134 crore) during April-May FY'13. While in April-May 2011-12, financial and non-financial services sector had attracted FDI worth $910 million.

Head of tax and expert on FDI with corporate law firm Amarchand & Mangaldas Krishan Malhotra opined that taxation issues related with GAAR and retrospective amendment in the Income Tax Act along with declining investors' confidence in the country are the major causes of the current decline in FDI inflows.

The overall FDI in India has also declined sharply for the second straight month in May to $1.32 billion from previous fiscal's $4.66 billion. During the period, the highest FDI of $1.12 billion came from Mauritius, followed by the Netherlands with $409 million and the UK with $378 million.

The S&P CNX Nifty is currently trading at 5,384.95, up by 18.65 points or 0.35% after trading in a range of 5,397.30 and 5,368.70. There were 28 stocks advancing against 22 declines on the index.

The top gainers on the Nifty were Infosys up by 2.72%, Cipla up by 2.14%, Tata Motors up by 2.08%, IDFC by 1.60% and TCS up by 1.52%. While, Hindalco down by 2.55%, Tata Steel by 1.43%, Hero Moto Co down by 1.16%, AXIS Bank  down by 0.92% and Siemens down by 0.77% were the top losers on the index.

Most of the Asian indices were trading in green;  Straits Times up by 0.11% while Shanghai Composite up by 0.61%, Kospi Composite Index  up 0.19%, KLSE Composite was flat, and Taiwan Weighted up by 0.88%, while Nikkei 225 down 0.01% and  Hang Seng index down by 0.28% were the only losers. 

Jakarta Composite is closed till Wednesday, due to public and Idul Fitri holidays.