NEUTRAL LINE

The Indian equity markets are gyrating around their neutral line. While on the global front, the majority of Asian markets were trading in green on hopes that the Federal Reserve and the European Central Bank may signal some stimulus to ramp up growth. Meanwhile,terming high inflation as a bigger danger than the slowest growth in almost a decade, the Reserve Bank of India (RBI) in its much awaited First Quarter Monetary Policy review has left its key policy rates unchanged at 8% (repo) and 7% (reverse repo) respectively. Also, cash reserve ratio (CRR) remained untouched at 4.75%. However, the world's most aggressive central bank, in a surprise has slashed the Statutory Liquidity Ratio (SLR) of scheduled commercial banks from 24% to 23% of their NDTL with effect from the fortnight beginning August 11, 2012.  Meanwhile, the MSF rate determined with a spread of 100 basis points above the repo rate, along with the Bank rate remained unchanged at 9.0%. The monsoon and drought-like situation unfolding in several states was keeping investors cautious, meanwhile the EGoM headed by Agriculture Minister Sharad Pawar is expected to meet today over relief measures to tackle the situation. Traders were seen piling up position in FMCG, HC and Realty sector, while selling was witnessed in Auto, Metal and TECk sector. Meanwhile, software stocks like Wipro, TCS and HCL Technologies were trading in green after Prime Minister Manmohan Singh has set up a panel headed by N Rangachary to review taxes in information technology and R&D sectors. The NSE Nifty and BSE Sensex were managing to hold their psychological 5150 and 17100 levels respectively. The market breadth on BSE was positive in the ratio of 986:939 while 116 scrips remained unchanged.

The BSE Sensex is currently trading at 17157.28 up by 13.60 points or 0.08% after touching a high of 17208.45 and a low of 17112.61. There were 11 stocks advancing against 19 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index was up 0.09%, while Small cap index was up 0.11%.

On the BSE sectoral space, FMCG up by 0.56%, HC up by 0.49%, Realty up by 0.33%, Oil & gas up by 0.19% and PSU up by 0.13% while Auto down by 0.44%, Metal down by 0.28%, TECk down by 0.26%, CG down by 0.20% and Power down by 0.17% there were losers on the index.

Cipla up by 2.55%, Wipro up by 1.84%, ONGC up by 1.03% HDFC up by 1.02% and ITC up by 0.68% were the gainers on the Sensex, while Bharti Airtel down by 2.83%, Hero MotoCorp down by 1.32%, Tata Steel down by 0.95%, Dr Reddys Lab down by 0.90% and Tata Motors down by 0.90% were the major losers in the index.

Meanwhile, Coal Ministry has urged Independent power producers (IPP) with coal block allocations to take part in bids for power procurement called for by discoms - the distribution utilities that take care of power procurement and distribution. Albeit, almost all power producers have long-term power purchase agreements with discoms.

The ministry had noticed that the power producers, who were been allocated coal blocks are not participating in the bids and are quoting higher tariff almost similar to projects that had coal linkages. It also, urged them to pass on benefits of low cost of coal from the blocks to the consumers in the form of lower electricity tariff.

This move by the ministry comes at a time when the Comptroller and Auditor General (CAG) is likely to come out with its final report. The CAG has also criticized on the allocation of coal blocks to IPPs and captive power producers and has confirmed that it is in the way of estimating the inappropriate benefits granted to them.

The S&P CNX Nifty is currently trading at 5,193.70, down by 6.10 points or 0.12% after trading in arange of 5,218.35 and 5,187.85. There were 19 stocks advancing against 31 declines on the index.

The top gainers on the Nifty were Wipro up by 2.19%, Cipla up by 2.04%, ACC up by 1.13%, DLF by 1.04% and ONGC up by 0.99%. While, Bharti Airtel down by 3.02%, Bank Baroda down by 2.22%, BPCL down by 2.03%, Reliance Infra down by 1.73% and  Hero Moto Co down by 1.45% were the major losers on the index.

Most of the Asian indices were trading in green; Hang Seng index was up by 1.06%, Nikkei 225 up 0.87%, Taiwan Weighted up 1.11%,  Kospi Composite Index up 2.26%  and  Jakarta Composite  up by 0.63%  while  Straits Times was down 0.23%,  KLSE Composite down 0.05%, and Shanghai Composite down 0.07% were the losers.

CONSOLIDATION

After garnering hefty profit in previous two sessions, domestic benchmarks are consolidating at pre close levels ahead of Reserve Bank of India's (RBI) quarterly monetary policy review, to be released later in the day. The RBI, however, is unlikely to cut policy rates considering the inflation above its comfort level. The headline inflation in June rose to 7.25 percent, while consumer price inflation was above the 10 percent mark. On the global front, markets in Asia extended on hopes that the Federal Reserve and the European Central Bank may signal some stimulus to ramp up growth. Though, US markets closed marginally lower overnight, cooling off after two days of rally, as the mood of investors turned cautious to see if central bankers later this week will suggest more stimulus. Back home, rate sensitive stocks like banks and auto traded lower. Capital goods stocks, which are also affected by high interest rates, traded in the red. Meanwhile, software stocks like TCS, Wipro and HCL Technologies edged higher after Prime Minister Manmohan Singh has set up a panel headed by N Rangachary to review taxes in information technology and R&D sectors. The broader indices too were trading flat at this point of time. The market breadth on the BSE was positive; there were 783 shares on the gaining side against 601 shares on the losing side while 65 shares remained unchanged.

The BSE Sensex opened at 17,186.61; about 43 points higher compared to its previous closing of 17,143.68, and has touched a high and a low of 17,208.45 and 17,161.33 respectively.

The index is currently trading at 17,161.33, up by 17.65 points or 0.10%. There were 17 stocks advancing against 13 declines on the index.

The overall market breadth has made a strong start with 54.04% stocks advancing against 41.48% declines. The broader indices too were trading flat; the BSE Mid cap and Small cap indices rose 0.01% and 0.10% respectively.

The top gaining sectoral indices on the BSE were, HC up by 0.78%, FMCG up by 0.74%, Oil and Gas up by 0.46%, CD up by 0.40% and Realty up by 0.25%. While, CG down by 0.53%, Power down by 0.29%, Auto down by 0.27%, TECk down by 0.22% and Metal down by 0. 17% were the top losers on the index.

The top gainers on the Sensex were Cipla up by 2.03%, Wipro up by 2.03%, ONGC up by 1.25%, TCS up by 1.08% and M&M up by 0.92%.

On the flip side, Bharti Airtel was down by 1.73%, Hero MotoCorp was down by 1.17%, BHEL was down by 0.95%, Tata Motors was down by 0.92% and Infosys was down by 0.88% were the top losers on the Sensex.

Meanwhile, Coal Ministry has urged Independent power producers (IPP) with coal block allocations to take part in bids for power procurement called for by discoms - the distribution utilities that take care of power procurement and distribution. Albeit, almost all power producers have long-term power purchase agreements with discoms.

The ministry had noticed that the power producers, who were been allocated coal blocks are not participating in the bids and are quoting higher tariff almost similar to projects that had coal linkages. It also, urged them to pass on benefits of low cost of coal from the blocks to the consumers in the form of lower electricity tariff.

This move by the ministry comes at a time when the Comptroller and Auditor General (CAG) is likely to come out with its final report. The CAG has also criticized on the allocation of coal blocks to IPPs and captive power producers and has confirmed that it is in the way of estimating the inappropriate benefits granted to them.

The S&P CNX Nifty opened at 5,214.85; about 15 points higher compared to its previous closing of 5,199.80, and has touched a high and a low of 5,218.35 and 5,199.50 respectively.

The index is currently trading at 5,200.35, higher by 0.55 points or 0.01%. There were 23 stocks advancing against 27 declines on the index.

The top gainers of the Nifty were Wipro up by 2.43%, Cipla up by 2.06%, Ranbaxy up by 1.35%, ONGC up by 1.23% and TCS up by 1.06%.

On the flip side, Bharti Airtel down by 2.01%, BHEL down by 1.43%, Hero MotoCorp down by 1.36%, Bank of Baroda down by 1.33% and JP Associates down by 0.29%, were the major losers on the index.

Most of the Asian equity indices were trading in the green; Hang Seng surged by 164.92 points or 0.84% to 19,750.32, Jakarta Composite gained 15.57 points or 0.40% to 4,115.70, Nikkei 225 added 61.53 points or 0.72% to 8,697.35, Kospi Composite gained 26.62 points or 1.43% to 1,869.92 and Taiwan Weighted added 37.89 points or 0.53% to 7,196.11.

On the flipside, Shanghai Composite was down by 1.43 points or 0.07% to 2,108.49, KLSE Composite was down by 1.57 points or 0.10% at 1,630.90 and Straits Times was down by 6.43 points or 0.21% to 3,026.03.

MARKETS HOLD EARLY GAINS

Indian equities continued to trade in fine fettle on back of strong buying in frontline counters in the late morning session. On the global front, the Asian markets were majorly trading in green with many of the indices trading higher by over half a percent as the results of some top companies came good and hopes strengthened that European policy makers will support the euro. Traders were seen piling up position in CG, Realty and Bankex. Though, the monsoon worries are keeping the mood cautious as Union Agriculture Minister Sharad Pawar has said that the country may face a "serious" situation if it does not rain in the next two months. The NSE Nifty and BSE Sensex were trading above their psychological 5150 and 17000 levels respectively. The market breadth on BSE was positive in the ratio of 1451:631 while 70 scrips remained unchanged.

The BSE Sensex is currently trading at 17017.36 up by 178.17 points or 1.06% after trading as high as 17037.24 and as low as 16919.14. There were 25 stocks advancing against 5 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index up 0.85% while Small cap index was up 0.86%.

On the BSE sectoral space, CG up by 2.01%, Realty up by 1.89%, Bankex up by 1.76%, Power up by 1.51%, and HC up by 1.40% while there no was loser on the index.

ICICI Bank up by 3.47%, Cipla up by 2.25%, Sun Pharma up by 2.10% L&T up by 2.08% and Tata Motors up by 1.72% were the gainers on the Sensex, while Wipro down by 1.54%, Hindalco Industries down by 0.38%, TCS down by 0.27%, Maruti Suzuki down by 0.10% and Hindustan Unilever down by 0.05% were the major losers in the index.

Meanwhile, deficient rains have became a matter of serious concern, since the onset of monsoon, the country has received 22 per cent less rainfall than predicted with northwest region being the most affected with a deficiency reaching almost 42 per cent. Apart from the government and political leaders, the industry body CII too has expressed concern over the impact of deficient rainfall on the broader economy, at a time when there is already a sharp slowdown on account of various domestic and global factors.

CII director general Chandrajit Banerjee has been reported saying that 'not only will there be an impact on the performance of the agricultural sector but also on other sectors through the effect on rural incomes.'

In its latest release, the industry body has said that there is need to reduce the dependence of agriculture on monsoon by adopting technologies like drip irrigation, developing drought resistant quality of seeds, and promoting rainwater harvesting.

The suggestions made by CII include uniform implementation of the APMC Act across States, immediate delisting of perishables from the APMC list and giving farmers the freedom to sell fresh, perishable produce directly to food processing companies, aggregators and retailers, which can be possible only through uniform implementation of the APMC Act.

The S&P CNX Nifty is currently trading at 5,154.70,up by 54.85 points or 1.08% after trading as high as 5,158.90 and as low as 5,129.75. There were 43 stocks advancing against 7 declines on the index.

The top gainers on the Nifty were ICICI Bank up by 3.68%, JP Associates up by 2.79%, AXIS Bank up by 2.76%, LT by 2.57% and Cairn up by 2.46%. While, Wipro down by 2.26%, TCS  down by 0.67%, HCL Tech down by 0.39%, Ambuja Cement  down by 0.38% and  Hindalco down by 0.30% were the major losers on the index.

Mostly Asian equity indices were trading in green; Hang Seng index up by 1.44%, Nikkei 225 up 0.50%, Taiwan Weighted up 0.42%,  Kospi Composite Index up 0.78% , Jakarta Composite  up by 0.35% and Straits Times was up 0.85%, while KLSE Composite down 0.01%, Shanghai Composite down 0.13% were the losers.

SENSEX RECLAIMS 17K

Buoyed by positive global cues, the local bourses have extended their rally for second consecutive day. The global sentiments were soothed by European leaders' comment that they would intervene to help the troubled countries from high cost of borrowing. The US markets closed higher on Friday and the major indices surged to over two months high while, Asian markets extended their gains on Monday, supported by expectations the Federal Reserve and the European Central Bank will deliver new measures to underpin their fragile economies. Back home, sustained buying in most of the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to regain their crucial 17,000 and 5,150 mark respectively. Meanwhile, traders will be eyeing the first-quarter monetary policy review to be announced tomorrow, there are hopes that RBI governor Duvvuri Subbarao will spring a pleasant surprise in the form of a rate cut. The broader indices too were trading with traction. The market breadth on the BSE was positive; there were 982 shares on the gaining side against 472 shares on the losing side while 64 shares remained unchanged.

The BSE Sensex opened at 16,919.14; about 80 points higher compared to its previous closing of 16,839.19, and has touched a high of 17,032.51 while low remain its opening.

The index is currently trading at 17,013.08, up by 173.89 points or 1.03%. There were 26 stocks advancing against only 4 declines on the index.

The overall market breadth has made a strong start with 31.09% stocks advancing against 64.69% declines. The broader indices too were trading on a firm note; the BSE Mid cap and Small cap indices rose 0.72% and 0.65% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 1.84%, Realty up by 1.51%, CG up by 1.33%, Power up by 1.29% and HC up by 1.17%. While, there were no losers on the index.

The top gainers on the Sensex were ICICI Bank up by 3.50%, Cipla up by 2.28%, Bharti Airtel up by 1.81%, Sun Pharma up by 1.74% and Tata Motors up by 1.74%. While, Maruti Suzuki down by 1.52%, Wipro down by 0.60%, Dr Reddy down by 0.24% and HUL down by 0.16% remained the few losers on the Sensex.

Meanwhile, in the wake growing fears about drought and food inflation, the Standing Committee of Parliament on Agriculture, headed by Basudeb Acharia is likely to meet on 3rd August to hear reports from various Ministries and Departments on the details of the actions initiated to tackle the problem. Agriculture, Food, Railways and Water Resources Ministries are asked to appear before the committee. 63% of India's geographical area has registered a deficient rainfall or worse, while half the monsoon season is already over. It's been reported that the current monsoon season in India is 22% below average. Except in North-Eastern regions and North Bengal, almost the entire country is affected by deficient monsoon.

The current situation is forecasted to be more serious than that of 2010. The current scenario demands the central government to take aggressive action plans so as to face the drought period. The Opposition parties had criticized the centre for the alleged "lack of preparation" to face the drought situation. The former Agriculture Minister Rajnath Singh had demanded the government to provide free power for farmers, while Maharashtra and Karnataka state governments have demanded financial aid to tackle the situation.

The S&P CNX Nifty opened at 5,129.75; about 28 points higher compared to its previous closing of 5,099.85, and has touched a high and a low of 5,156.85 and 5,129.75 respectively.

The index is currently trading at 5,153.25, higher by 53.40 points or 1.05%. There were 43 stocks advancing against 7 declines on the index.

The top gainers of the Nifty were ICICI Bank up by 3.74%, Axis Bank up by 2.76%, Cipla up by 2.40%, JP Associates up by 2.36% and RInfra up by 2.26%.

On the flip side, Ambuja Cement down by 1.62%, Maruti Suzuki down by 1.61%, Wipro down by 0.84%, BPCL down by 0.21%, and Dr Reddy down by 0.21% remained the top losers on the index.

Most of the Asian equity indices were trading in the green; Hang Seng surged by 271.69 points or 1.41% to 19,546.65, Jakarta Composite gained 5.86 points or 0.14% to 4,091.17, Nikkei 225 added 53.14 points or 0.62% to 8,619.78, Straits Times was up by 20.04 points or 0.67% to 3,018.60, Kospi Composite gained 15.19 points or 0.84% to 1,844.39 and Taiwan Weighted added 45.50 points or 0.62% to 7,168.74.

Shanghai Composite was down by 1.47 points or 0.07% to 2,127.30, KLSE Composite was marginally down by 0.96 points or 0.05% at 1,624.91.

COMMODITIES CALLS

silver range 53050 - 53400

long above 53151 target 53240 - 53300 - 53390

short below 53320 target 53225 - 53160 - 53070

gold range 29850 - 29740

long above 29786 target 29800 - 29825 - 29840

short below 29830 target 29798 - 29775 - 29745

nickle - 891 - 897

long above  892 target 894 - 896 - 897

short below 896 target 894 - 892 - 891

copper 419 - 422

long above 419.8 target 422

short below 420.8 target 419

crude - 4980 - 5010

long above 4986 target 5010 

short below 5002 target 4980

BOUNCE BACK

Buoyed by rally across the globe, Indian equity markets have made a gap up start on the first day of the August F&O series with Nifty recapturing its crucial 5,100 level. The sentiments across the globe remained ebullient led by ECB President Mario Draghi's comments on Eurozone. The US markets went for a rally overnight on getting positive news from the unemployment claims front and as assurance came from European Central Bank President Mario Draghi saying his bank is ready to do whatever it takes to preserve the single currency. While, most of the Asian equity indices were trading in the green at this point of time, indicating optimistic sentiments across the region. Back home, sustained buying in mostly all the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to trade comfortably over their crucial 16,800 and 5,100 mark respectively. On the sectoral front, banking, realty and metal remained the top gainers while there was no loser on the index. Meanwhile, retail stocks like, Pantaloon Retail, Shoppers Stop and Trent all edged higher after Trade Minister Anand Sharma said that the government is committed to opening its retail sector to foreign investment and will not reverse its stance. The broader indices too witnessed a great traction in the early trade. The market breadth on the BSE was positive; there were 995 shares on the gaining side against 317 shares on the losing side while 46 shares remained unchanged.

The BSE Sensex opened at 16,860.16; about 221 points higher compared to its previous closing of 16,639.82, and has touched a high and a low of 16,915.76 and 16,842.61 respectively.

The index is currently trading at 16,842.61, up by 202.79 points or 1.22%. There were 27 stocks advancing against just 3 declines on the index.

The overall market breadth has made a strong start with 73.27% stocks advancing against 23.34% declines. The broader indices too were exhibiting traction in the trade; the BSE Mid cap and Small cap indices surged 0.88% and 0.81% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 1.96%, Realty up by 1.63%, Metal was up by 1.63%, Auto up by 1.31% and CG up by 1.17%. While, there were no losers on the index.

The top gainers on the Sensex were Tata Motors up by 3.88%, ICICI Bank up by 3.21%, Tata Steel up by 2.64%, Hindalco up by 2.51% and Bharti Airtel up by 2.46%.

On the flip side, Sun Pharma was down by 0.71%, Dr Reddy was down by 0.35%  and Bajaj Auto was down by 0.20% were the few losers on the Sensex.

Meanwhile, showing the sign of slowing global economy, Foreign Direct Investment (FDI) in India extended its decline in May with inflows slipping to $1.32 billion from $4.66 billion in the same month last year. The more alarming thing is that the FDI is declining at a time when India's economic growth has slipped to 9 year low of 6.5% in 2011-12, while in the last quarter it was merely 5.3%.

Foreign fund inflows in April almost halved to $1.85 billion from $3.12 billion in April 2011, which is likely to keep the balance of payments under pressure and could also impact the already depreciating rupee. Further if the commodity and oil prices increases globally, a weaker domestic currency will add to inflationary pressures.

As per reports, maximum FDI inflows in May were received from services of $754 million, pharmaceuticals $401 million, construction $181 million and power $100 million. Country wise in May, India received the highest FDI from Mauritius $1.12 billion million, followed by the Netherlands $409 million, the UK $378 million, Singapore $231 million and Cyprus $177 million.

The S&P CNX Nifty opened at 5,124.30; about 81 points higher compared to its previous closing of 5,043.00, and has touched a high and a low of 5,130.70 and 5,110.15 respectively.

The index is currently trading at 5,112.95, higher by 69.95 points or 1.39%. There were 46 stocks advancing against just 4 declines on the index.

The top gainers of the Nifty were Tata Motors up by 4.05%, ICICI Bank up by 3.17%, Sterlite Industries up by 3.08%, Tata Steel up by 2.75% and ACC up by 2.73%.

On the flip side, Sun Pharma down by 0.47%, Dr Reddy down by 0.35%, Hero MotoCorp down by 0.15% and Bajaj Auto down by 0.15%, were the few losers on the index.

Most of the Asian equity indices were trading in the green; Shanghai Composite was up by 2.53 points or 0.12% to 2,128.53, Hang Seng surged by 344.95 points or 1.83% to 19,237.74, Jakarta Composite gained 57.41 points or 1.46% to 4,061.81, Nikkei 225 added 118.61 points or 1.40% to 8,561.71, Kospi Composite gained 36.72 points or 2.09% to 1,819.67 and Taiwan Weighted added 128.45 points or 1.81% to 7,097.14.

On the flip side, KLSE Composite was down 1.79 points of 0.11% to 1,622.12 and Straits Times was down by 2.76 points or 0.09% to 3,001.81.

COMMODITY CALLS

silver expected range 53090 - 53815

long above 53230 target 53450 - 53611 - 53815

gold - 29690 - 29980

long above 29747 target 29835 - 29900 - 29980

crude - 4890 - 5003

long above 4937 target - 4962 - 4980- 5003

nickle - 883 - 902

long above 886.50 target- 892 - 896 - 902

copper 418 - 423

long above 419.6 target 420.8 - 421.8 423

MARKETS TRADE FLAT

Domestic benchmarks are trading near its previous close level with negative bias in early morning trade, with the Nifty hovering around the 5,100 mark ahead of July F&O series expiry. On the global front, the US markets end mixed overnight, while Dow made some recovery after three straight days of losses, mainly on a report that the Federal Reserve is moving closer toward further stimulus to support the faltering economy. While, Asian shares steadied on Thursday after bouncing from recent lows as hopes grew for more US stimulus to support growth and new European policy measures to keep the euro zone's debt crisis from deepening further. Back home, unwinding of positions in the stocks being removed from the futures and options segment of NSE were adding pressure, out of the 51 excluded stocks, 44 ended with losses in last session. The sentiments also remained dampen as shares of companies engaged in Aviation sector butchered after the International Air Transport Association said that India's aviation is in a multi-faceted crisis. On the sectoral front consumer durables witnessed the maximum gain in trade followed by auto and fast moving consumer goods while, software, capital goods and technology remained the top losers on the BSE sectoral space. The broader indices were trading mixed. The market breadth on the BSE was positive; there were 798 shares on the gaining side against 576 shares on the losing side while 69 shares remained unchanged.

The BSE Sensex opened at 16,887.84; about 41 points higher compared to its previous closing of 16,846.05, and has touched a high and a low of 16,899.77 and 16,833.22 respectively.

The index is currently trading at 16,843.17, down by 2.88 points or 0.02%. There were 17 stocks advancing against 13 declines on the index.

The overall market breadth has made a positive start with 55.30% stocks advancing against 39.92% declines. The broader indices were trading mixed; the BSE Mid cap was down by 0.28% while Small cap indices rose 0.09%.

The top gaining sectoral indices on the BSE were, CD up by 0.53%, Auto up by 0.33%, FMCG up by 0.32%, Power up by 0.23% and HC up by 0.16%. While, IT down by 0.36%, CG down by 0.35%, TECk down by 0.34%, Oil and Gas down by 0.19% and Metal down by 0.18% were the top losers on the index.

The top gainers on the Sensex were Bajaj Auto up by 1.30%, Maruti Suzuki up by 1.20%, Sun Pharma up by 1.01%, Jindal Steel up by 0.96% and ITC up by 0.57%.

On the flip side, Coal India was down by 0.78%, ONGC was down by 0.65%, Infosys was down by 0.55%, Wipro was down by 0.47% and Tata Steel was down by 0.36% were the top losers on the Sensex.

Meanwhile, Defense Minister A K Antony will now head the reconstituted Empowered Group of Ministers (EGoM) on natural gas and allocation, which will decide if the price of natural gas produced by Reliance Industries (RIL) from KG-D6 fields can be revised before 2014. Antony, who was not a part of the EGoM, has been included following Pranab Mukherjee's resignation from finance ministry for contesting in Presidential election. Minister of State for Finance, Namo Narain Meena on the EGoM will be representing the finance ministry.

RIL has demanded a market price of KG-D6 gas instead of $4.205 per million British thermal unit rate, which was fixed for five years ending March 31, 2014. The company began its output from KG-D6 by April 1, 2009 and it has seen output halve to less than 30 million standard cubic meters per day in past two years. Now the company seeks market price, which will help it to deploy deep sea technologies to exploit difficult sections of the reservoir.

India imports liquefied natural gas (LNG) at three times the price fixed for KG-D6 gas and RIL is seeking that price for the eastern offshore fields. The Oil Ministry is, however, opposed to any revision in rates before timeline is fixed by the EGoM.

Apart from the two ministers, the EGoM also includes Petroleum Minister, Jaipal Reddy, Power Minister, Sushil Kumar Shinde, Fertiliser and Chemicals Minister, M K Alagiri, Law and Justice Minister, Salman Khurshid and Planning Commission deputy chairman, Montek Singh Ahluwalia.

The S&P CNX Nifty opened at 5,126.30; about 17 points higher compared to its previous closing of 5,109.60, and has touched a low of 5,104.45 while high remained its opening.

The index is currently trading at 5,108.40, up by 1.20 points or 0.02%. There were 26 stocks advancing against 25 declines on the index.

The top gainers of the Nifty were Maruti Suzuki up by 1.69%, Ambuja Cement up by 1.55%, Bajaj Auto up by 1.38%, Jindal Steel up by 1.09% and Hindalco up by 0.74%.

On the flip side, PNB down by 0.95%, ONGC down by 0.90%, BPCL down by 0.82%, Coal India down by 0.78% and Infosys down by 0.72%, were the major losers on the index.

Most of the Asian markets were trading in the green; Shanghai Composite was up by 5.14 points or 0.24% to 2,141.29 Hang Seng added 4.80 points or 0.03% to 18,873.18, Nikkei 225 added 23.48 points or 0.28% to 8,389.38, Straits Times was up by 16.37 points or 0.55% to 3,007.29, Kospi Composite gained 6.68 points or 0.38% to 1,775.99 and Taiwan Weighted added 25.10 points or 0.36% to 7,004.23.

On the other hand, Jakarta Composite lost 6.84 points or 0.17% to 3,994.00 and KLSE Composite declined by 4.59 points or 0.28% to 1,630.50.

MARKETS SLIDE

Domestic benchmarks have made a negative opening and trading in the red with Sensex breaching its crucial 16,900 mark following weak global cues. The US markets suffered sharp cuts overnight; Dow extended its triple digit decline for the third straight session amid concerns about the ongoing debt crisis in Europe while worries over flimsy fiscal conditions of Spain and Greece, coupled with worries over slowdown in China are weighing on the sentiment across Asian counters. Bach home, investors remain concerned on mounting qualms over the government's ability to launch few important reforms amid stiff resistance from various UPA allies and Opposition parties. However, Nifty managed to hold 5,100 mark somehow while, Sensex lost its crucial 16,900 mark. On the sectoral front software remained the lone gainer on the Sensex while, major part of the blow was absorbed by capital goods, metals and auto stocks. The sentiments also got bashed after the NSE removed 51 stocks from the F&O segment with effect from July 27, 2012. Also the telecom companies' shares butchered in the early trade as decision on spectrum fee by the EGoM headed by Home Minister P Chidambaram has been deferred. Meanwhile, the broader indices too were struggling to get some traction and the market breadth on the BSE was negative; there were 552 shares on the gaining side against 818 shares on the losing side while 53 shares remained unchanged.

The BSE Sensex opened at 16,899.01; about 19 points lower compared to its previous closing of 16,918.08, and has touched a low of 16,816.67 while high remained its opening.

The index is currently trading at 16,832.76 down by 85.32 points or 0.50%. There were 5 stocks advancing against 25 declines on the index.

The overall market breadth has made a negative start with 38.79% stocks advancing against 57.48% declines. The broader indices too were trading in the red; the BSE Mid cap and small cap indices declined 0.46% and 0.33% respectively.

The only gaining sectoral index on the BSE was IT marginally up by 0.02%. While, CG down by 1.10%, Metal down by 0.95%, Auto down by 0.82%, Power down by 0.81% and Oil and Gas down by 0.76% were the top losers on the index.

The top gainers on the Sensex were HDFC Bank up by 0.50%, GAIL up by 0.28%, ITC up by 0.18%, Sun Pharma up by 0.12% and Infosys up by 0.08%.

On the flip side, Wipro was down by 1.82%, Jindal Steel was down by 1.78%, L&T was down by 1.44%, Maruti Suzuki was down by 1.28% and ONGC was down by 1.27% were the top losers on the Sensex.

Meanwhile, Competition Appellate Tribunal (COMPAT) has granted stay against competition watchdog Competition Commission of India (CCI)'s order, wherein the latter levying a penalty of Rs 317.91 crore, alleging three Aluminium phosphide tablet (APT) manufacturers for violation of sections 3 (3) (b) and 3 (3) (d) of the Competition Act, 2002.

However, in first of its kind of order, COMPAT would place a stay on penalty only on condition that all the appellants deposit 10% of the penalty amounts which would be Rs 25.244 crore for United Phosphorus, Rs 6.39 crore for Excel Crop Care and Rs 0.15 Lakh for Sandhya Organics. These companies are expected to deposit the money within eight weeks from the date of passing of the order.

Back in April, CCI passed an order imposing fine of Rs 317.91 crore on three manufactures for allegedly forming a cartel and maneuvering bids of the Food Corporation of India (FCI) to supply aluminum phosphide tablet. The Commission had then slapped fine of Rs 252.44 crore on United Phosphorus and Rs 63.90 crore and Rs 1.57 crore respectively on Excel Crop Care and Sandhya Organics. The penalty was calculated on the basis of 9% of the average of three years turnover on the three producers.

CCI directed a probe after receiving complaints from the FCI, which informed the fair trade regulator in February 2011 towards hike in cost of procurement and apprehended formation of a cartel by the manufacturers. The state procurement agency had further alleged that manufacturers had exaggerated the price in bids invited for preservation of the central pool food grain.

The S&P CNX Nifty opened at 5,118.40; about 10 points lower compared to its previous closing of 5,128.20, and has touched a high and a low of 5,121.60 and 5,100.45 respectively.

The index is currently trading at 5,105.50, lower by 22.70 points or 0.44%. There were 9 stocks advancing against 41 declines on the index.

The top gainers of the Nifty were HCL Tech up by 6.06%, Ambuja Cement up by 1.04%, ACC up by 0.64%, HDFC Bank up by 0.59% and GAIL up by 0.50%.

On the flip side, Jindal Steel down by 2.01%, Wipro down by 1.88%, L&T down by 1.41%, SAIL down by 1.35% and Bharti Airtel down by 1.31%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Hang Seng lost 30.02 points or 0.16% to 18,873.18, Jakarta Composite added 3.10 points or 0.08% to 3,989.60, KLSE Composite lost 1.55 points or 0.09% to 1,630.94, Nikkei 225 plunged by 85.17 points or 1.01% to 8,402.92 and Kospi Composite lost 14.14 points or 0.79% to 1,780.09.

On the other hand, Shanghai Composite was up by 3.24 points or 0.15% to 2,149.83 and Taiwan Weighted added 4.75 points or 0.07% to 7,012.30.

INTRA DAY CALLS FOR JULY 25

ACC :LONG ABOVE 1275 TARGET 1282

AXISBANK : LONG ABOVE 1044 TARGET 1050

BAJAJAUTO: LONG ABOVE 1565 TARGET  1575

BANKBARODA: LONG ABOVE 689 TARGET 693

DRREDDY :LONG ABOVE 1634 TARGET 1645

HEROMOTOR:LONG ABOVE 2043 TARGET 2055

LT: LONG ABOVE 1364 TARGET 1377

M&M : LONG ABOVE 689 TARGET 695

MARUTI :LONG ABOVE 1114 TARGET 1124

RANBAXY: LONG ABOVE 492 TARGET 497

SBI: LONG ABOVE 2102 TARGET 2112