MODERATE GAINS

Domestic benchmarks have made a flat-to-positive opening tracking an overall mixed trend in Asian markets. Moreover, traders remained on the sidelines ahead of inflation numbers for the month of April. On the global front, Asian markets were trading mixed on Monday morning as China eased monetary policy injecting liquidity in the global financial system. The Chinese central bank cut reserve requirement ratio for banks to support growth. Moreover, crude oil prices traded at a five-month low on Monday. OPEC, the agency of oil exporters, said that the supply outweighs demand by 1.3 to 1.5 million barrels a day. Back home, the PSU oil marketing companies like, BPCL, HPCL and IOC were edged higher by about a percent each on the buzz that they may go for a price hike after the budget session. Moreover, index heavyweights Reliance Industries and Infosys also led the market little higher. On the sectoral front, the BSE metal index is the top gainer, up nearly 1% or 78 points at 10,185 levels. Auto, realty, IT, capital goods and PSU stocks are also witnessing some amount of buying. At the same time, FMCG stocks were witnessing a wee bit of selling pressure. The broader indices were going neck to neck with benchmarks. The market breadth on the BSE was positive; there were 877 shares on the gaining side against 550 shares on the losing side while 72 shares remained unchanged.

The BSE Sensex opened at 16,318.36; about 26 points higher compared to its previous closing of 16,292.98, and has touched a high and a low of 16,386.17 and 16,298.28 respectively.

The index is currently trading at 16,335.04, up by 42.06 points or 0.26%. There were 21 stocks advancing against 9 declines on the index.

The overall market breadth has made a strong start with 58.51% stocks advancing against 36.69% declines. The broader indices were trading in-line with benchmarks; the BSE Mid cap and Small cap indices surged 0.28% and 0.38% respectively.

The top gaining sectoral indices on the BSE were, Metal up by 0.78%, CD up by 0.57%, CG up by 0.54%, Auto up by 0.46% and Bankex up by 0.44%. While, Oil and Gas down by 0.13% was the lone loser on the index.

The top gainers on the Sensex were Bajaj Auto up by 1.52%, Sterlite Industries up by 1.52%, Coal India up by 1.18%, ICICI Bank up by 1.11% and GAIL up by 1.10%.

On the flip side, ONGC was down by 1.71%, Sun Pharma was down by 1.00%, Tata Power was down by 0.49%, HDFC Bank was down by 0.43% and Bharti Airtel was down by 0.29% were the top losers on the Sensex.

Meanwhile, the government is mulling the probability of giving direct subsidy in respect of kerosene, LPG & fertilizers to farmers. A Task force in this regards was formed under the chairmanship of Nandan Nilekani, Unique Identification Authority of India (UIDAI) to examine and recommend a implemental solution for transfer of subsidy directly to the intended beneficiaries.

The task force has submitted its interim report with respect to fertilizers and has recommended three stage approach with respect to payment of subsidy directly to farmers. The Phase-I is to capture the information on availability of fertilizers at the farm gate level, wherein the availability at the retailer level will be captured.

In Phase-II, which will be implemented after the Phase-I stabilizes; the subsidy is expected to be transferred at the last point sale. Under Phase III, the subsidy is expected to be transferred directly to the intended beneficiary based on AADHAR Numbers.

Further by way of a heavily subsidized MRP, the fertilizer subsidy is transferred to the farmer including the marginal and small ones. As on date, a farmer pays only approximately 50% of the cost of fertilizer as MRP.

The S&P CNX Nifty opened at 4,934.35; about 6 points higher compared to its previous closing of 4,928.90, and has touched a high and a low of 4,955.00 and 4,928.85 respectively.

The index is currently trading at 4,941.05, higher by 12.15 points or 0.25%. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were Dr Reddy up by 1.51%, Coal India up by 1.46%, IDFC up by 1.45%, Bajaj Auto up by 1.44% and Hindalco up by 1.41%.

ONGC down by 1.57%, Sun Pharma down by 1.41%, JP Associates down by 1.19%, Ambuja Cement down by 1.18% and ACC down by 1.15%, were the major losers on the index.

Asian equity indices were trading mixed; Shanghai Composite was up 4.58 points or 0.19% to 2,399.56, Hang Seng was up 58.51 points or 0.29% to 20,023.14, Nikkei 225 was up 24.22 points or 0.27% to 8,977.53 and Straits Times was up 12.24 points or 0.42% to 2,895.64.

On the flip side, Jakarta Composite was down 18.68 points or 0.45% to 4,095.47, KLSE Composite was down 2.16 points or 0.14% to 1,582.16, KOSPI Composite was down 3.14 points or 0.16% to 1,913.99 and Taiwan Weighted was down 13.14 points or 0.18% to 7,388.23.

D-STREET UNDER PRESSURE

Turbulence seems to be incessant for Indian equity markets, which for the fourth consecutive session are trading under the weather, with cut of close to half a percentage points on Friday. Although, barometer gauges in comparison to early deals, have not virtually moved anywhere, however the existence of losses, itself is an indicator of somber sentiment. Sideline behavior of market-men, ahead of the release of IIP numbers is also putting barometer gauges in standstill mode. The street expectation is that industrial production (IIP) has likely grown around 1.5 percent year-on-year in March, significantly lower than February's 4.1 percent.

On the global front, spooked by JPMorgan's $2 billion huge loss from a failed hedging strategy, Asian shares retreated on Friday, as investors warily watched political turmoil in the euro zone as they awaited new Chinese data for clues on its growth outlook. The US future indices continued to show a downtick in the screen trade. Back home, although selling was broad based, however, stocks from Realty, Auto and Healthcare counters undergoing major torment, dragged the 30 scrip sensitive index of Bombay Stock Exchange (BSE)-Sensex- below its 16400 level, also its new four month's low. The widely followed 50 share index of National Stock Exchange (NSE)-Nifty-too continued to trade sub 5000 mark. However, the broader indices managed to lose some ground in comparison to early deals.

Meanwhile, the Index of Industrial Production (IIP), a key measure of industrial output, contracted at an astonishing -3.5% in March versus 4.1% in the month of February. This is the first fall in IIP since October 2011, when it declined 4.7 per cent. Manufacturing declined 4.4 per cent, while mining fell 1.3 per cent. Electicity grew at 2.7 per cent.

The BSE Sensex is currently trading at 16,345.25, down by 74.80 points or 0.46%. The index has touched a high and low of 16,395.12 and 16,305.29 respectively.  There were 10 stocks advancing against 20 declines on the index. The overall market breadth on BSE was in the favour of declines which thrashed advances in the ratio of 1222:696, while 95 shares remained unchanged.

The broader indices too enticed some additional weakness; the BSE Mid cap and Small cap indices declined 0.70% and 0.66% respectively.

Selling was broad based, however, the major losing sectoral indices on the BSE were, Realty down by 0.98%, IT down by 0.91%, HC down by 0.89%, TECk down by 0.79% and FMCG down by 0.75%.

The top gainers on the Sensex were Hero MotoCorp up by 1.58%, Jindal Steel up by 1.46%, Bajaj Auto up by 1.07%, BHEL up by 0.96% and Wipro up by 0.58%.

On the flip side, Maruti Suzuki down by 2.48%, Infosys down by 1.79%, ONGC down by 1.71%, Sun Pharma down by 1.59% and DLF down by 1.45% were the top losers on the Sensex.

Meanwhile, economic growth in India and other Asia Pacific countries is expected to be better as compared to the rest of the world, as per a UN Report. In fact the Asia Pacific region will be an anchor of stability and a new growth pole for the world economy.

Growth for Indian economy has been projected at 7.5% in 2012, up from 6.9% in the last fiscal year. The Indian economy's strong fundamentals, namely high saving and investment rates, rapidly expanding labour force and middle class will ensure a steady economic performance. Infact indicators are pointing to the fact that the economy is turning around and core sectors, including manufacturing, are showing signs of recovery. It may be noted that the government data has pegged the growth for FY'13 to be around 7.6%.

The major impediment to growth will be the reduced demand in the region's traditional export markets of US and Europe together with higher capital costs and loose monetary policies of some advanced economies.

Inflation in India is expected to remain around 6.5% in 2012. The slower growth is expected to moderate inflation. The report has further observed that in line with increased prosperity, the food habits of consumers have been changing from cereals to proteins, fruits and vegetables, and to contain food inflation, supply of these items has to be enhanced. As per latest official data, overall inflation at the end of March was 6.89%.

The S&P CNX Nifty is currently trading at 4,941.70, lower by 24.00 points or 0.48%. The index has touched a high and low of 4,954.05 and 4,924.95 respectively. There were only 13 stocks advancing against 37 declines on the index.

The top gainers of the Nifty were Jindal Steel up by 1.65%, Hero MotoCorp up by 1.52%, JP Associates up by 1.41%, BHEL up by 1.12% and Bajaj Auto up by 1.05%.

On the flip side, Maruti Suzuki down by 2.43%, Ambuja Cement down by 2.22%, ACC down by 1.89%, Sun Pharma down by 1.79% and SAIL down by 1.73% were the major losers on the index.

All the Asian equity indices were trading in the red; Shanghai Composite declined by 0.25%, Hang Seng plunged 1.16%, Jakarta Composite shed 0.77%, KLSE Composite lost 0.07%, Nikkei 225 slid 0.45%, Straits Times shed 0.76%, KOSPI Composite plunged 1.29% and Taiwan Weighted plummeted 1.13%. 

SOUTH BOUND JOURNEY

South-bound journey continued for yet another day with Nifty breaching crucial 4,950 mark in early trade following weak regional peers. Asian counters remained choppy as investors' at large lacked conviction to open fresh bets after reports showed that leading US bank JPMorgan suffered a $2 billion trading loss from a failed hedging strategy, as positions in credit securities proved riskier than expected. Investors also remained skittish amid the political uncertainty in European region as stakes are significantly high for the European Union to keep Greece afloat as the EU is now Greece's biggest creditor and a Greek default means euro zone taxpayers will take a hit. Back home, the sentiments weigh down on ministerial panel's further deferral of long overdue legislations related to insurance, coal and competition law. However, SKS microfinance shot up over 15 percent after the government cleared the Microfinance Bill. It has made the Reserve Bank of India as the regulator for all micro finance companies (MFIs). All the sectoral indices on the BSE traded lower. Banks, software, realty, technology and capital goods stocks were witnessing the selling pressure in early trade. Moreover, the broader indices too were struggling to get some traction and the market breadth on the BSE was negative; there were 585 shares on the gaining side against 942 shares on the losing side while 66 shares remained unchanged. 

The BSE Sensex opened at 16,355.59; about 65 points lower compared to its previous closing of 16,420.05, and has touched a low of 16,395.12 and 16,338.35 respectively.

The index is currently trading at 16,340.89 down by 79.16 points or 0.48%. There were 11 stocks advancing against 29 declines on the index.

The overall market breadth has made a negative start with 36.72% stocks advancing against 59.13% declines. The broader indices too were trading in the red; the BSE Mid cap and Small cap indices declined 0.51% and 0.39% respectively.

The major losing sectoral indices on the BSE were, IT down by 0.92%, Realty down by 0.91%, TECk down by 0.83%, CG down by 0.68% and HC down by 0.67%, while there were no gainers on the index.

The top gainers on the Sensex were Hero MotoCorp up by 0.98%, Bajaj Auto up by 0.81%, NTPC up by 0.67%, BHEL up by 0.50% and Cipla up by 0.29%.

On the flip side, Maruti Suzuki was down by 2.66%, Infosys was down by 1.32%, ONGC was down by 1.21%, Sun Pharma was down by 1.13% and L&T was down by 1.11% were the top losers on the Sensex.

Meanwhile, India can sustain a 3% current account deficit if it successfully projects an image of being a country that is growing fast and welcomes foreign and portfolio investment, states the Deputy Chairman of the Planning Commission Montek Singh Ahluwalia. Deputy Chairman is also of the view that to project such an image India has to address many issues like power, fuel subsidies, etc.

India currently has a CAD which is hovering around the 4% mark largely due to the substantial rise in oil imports. Exports have done better than expected but on the back of record rise in imports, the country has been left with a trade deficit of $185 billion in the last fiscal.

However Ahluwalia feels that if India can bring about reforms like deregulating oil prices, allowing FDI in aviation and multi-brand retail, the CAD can be tamed. Ahluwalia is also of the opinion that energy prices have to be aligned with economic realities otherwise energy efficiency cannot be pursued.

On the growth prospect, Deputy Chairman has stated that even without any fresh doze of reforms, the economy can grow at 9% or more. "I believe with the structure that we have, it is possible to grow at 9%, even if no new reforms are done immediately. But the most important thing is to take care of these executive decision-making issues".

The S&P CNX Nifty opened at 4,938.85; about 27 points lower compared to its previous closing of 4965.70, and has touched a high and a low of 4,954.05 and 4,936.70 respectively.

The index is currently trading at 4,940.50, lower by 25.20 points or 0.51%. There were only 13 stocks advancing against 37 declines on the index.

The top gainers of the Nifty were Bajaj Auto up by 0.92%, BPCL up by 0.89%, Hero MotoCorp up by 0.87%, JP Associates up by 0.75% and NTPC up by 0.67%.

On the flip side, Maruti Suzuki down by 2.84%, SAIL down by 1.84%, Ambuja down by 1.44%, Grasim down by 1.35% and Sun Pharma down by 1.35%, were the major losers on the index.

All the Asian equity indices were trading in the red; Shanghai Composite was down 5.92 points or 0.25% to 2,404.31, Hang Seng was down 237.74 points or 1.18% to 19,989.54, Jakarta Composite was down 31.98 points or 0.77% to 4,101.65, KLSE Composite was down 1.14 points or 0.07% to 1,586.92, Nikkei 225 was down 53.93 points or 0.60% to 8,955.72, Straits Times was down 20.84 points or 0.72% to 2,882.76, KOSPI Composite was down 28.70 points or 1.48% to 1,916.23 and Taiwan Weighted was down by 92.06 points or 1.23% to 7,391.95.

MARKETS HOLD GAINS

Indian equity markets are holding up their gains in the mid morning session, with benchmark indices trading above their crucial levels of 16600 (Sensex) and 5000 (Nifty). The rate sensitive sectors are showing the maximum rebound from their two consecutive days of drubbing, while the IT sector is once again suffering some profit booking. The one factor that is supporting the market sentiments is the strength in the rupee. That has recovered quiet a lot from its all time low witnessed in last session after the Reserve Bank of India said that exporters will be required to convert 50 percent of their foreign exchange holdings into rupees, in a move to support the sagging local currency. Exporters will also be allowed to buy foreign currency only after utilizing all the foreign currency holdings in their accounts.

The BSE Sensex is currently trading at 16,619.11, up by 139.53 points or 0.85%.  The index has touched a high and low of 16,666.39 and 16,515.62 respectively. There were 27 stocks advancing against just three declines on the index. The overall market breadth on BSE was in the favour of advances in the ratio of 1336: 671, while 100 shares remained unchanged.

The broader indices were going neck-in-neck to the benchmarks; the BSE Mid cap and Small cap indices were up by 0.75% and 0.64% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by1.24%, Oil & Gas up by 1.14%, Auto up by 1.06%, Capital Goods (CG) up by 1.03% and Public Sector Undertakings (PSU) was up by 0.88%. While, Information Technology (IT) down by 0.24% was the lone loser on the index.

The top gainers on the Sensex were Hero MotoCorp up by 2.14%, M&M up by 1.91%, Bajaj Auto up by 1.78%, SBI up by 1.78% and Cipla was up by 1.75%.

On the flip side, Maruti Suzuki down by 1.73%, Infosys down by 1.17% and Sun Pharma down by 0.30% were the only losers on the Sensex.

Meanwhile, India has received the highest amount of monthly foreign direct investment (FDI) of $8.1 billion in the month of March 2012. The highest ever number for the monthly FDI inflows has been that of $5.65 billion received in June last year. The money has come in despite the Vodafone tax dispute which many believed would impact FDI flows into the country.

The addition has taken cumulative FDI inflows for the fiscal 2011-12 to $36.50 billion. The inflows had aggregated to $19.42 billion in 2010-11, however, down from $25.83 billion in 2009-10.

A major contributor to the total inflows has been the deal worth $7.2 billion between Reliance Industries-British Petroleum (BP) which was announced in February 2011. The money from the deal has however come into the country in phases. The UK oil major has picked up a 30% stake in Reliance Industries' 21 oil-fields. The sectors that received substantial amounts of foreign FDI inflows during 2011-12 were services, pharmaceuticals, telecom, construction, power and metallurgical industries with Mauritius being the top FDI source.

The retrospective tax amendment brought in by the government in this year's Union Budget had received a lot flak with most believing that such changes would adversely affect India's FDI inflows. The government however has stood its ground and stated that the amendment was not brought in with the view of targeting any particular industry but was done to put the law into perspective. The provision has been approved by the Lok Sabha on May 08, 2012.

The S&P CNX Nifty is currently trading at 5,020.25, higher by 45.45 points or 0.91%. The index has touched a high and low of 5,037.95 and 4,984.15 respectively.  There were 44 stocks advancing against 6 declines on the index.

The top gainers of the Nifty were IDFC up by 4.34%, Axis Bank up by 2.56%, Kotak Bank up by 2.51%, Reliance Infra up by 2.49% and Cairn India was up by 2.40%.

On the flip side, Maruti Suzuki down by 1.89%, PNB down by 1.77%, Ranbaxy down by 1.36%, Infosys down by 1.18% and Sun Pharma down by 0.27% were the major losers on the index.

The other Asian indices continued to show mixed trend; Shanghai Composite declined 0.05%, Hang Seng lost 0.87%, Jakarta Composite was down by 0.26%, Straits Times lost 0.30% and Kospi Composite was marginally down by 0.07%.

On the other hand, Nikkei 225 was trading marginally in green, up by 0.03%, KLSE Composite was up by  0.22% and Taiwan Weighted gained 0.08%. 

GAP UP OPENING

After witnessing a sharp fall during last few trading sessions, key domestic bourses have witnessed rebound making a gap up opening. Moreover, the sentiments also got some support as the Indian rupee recovered sharply, appreciating 67 paise to 53.15 a dollar, which closed at 53.85 to the dollar yesterday. However, global cues remained unsupportive as overnight US stocks fell sharply as political uncertainty in Greece and the frail state of Spanish banks fueled fears that the region's debt crisis would worsen while, most of the Asian equity indices were trading in the red at this point of time. Back home, sustained buying in mostly all the key heavyweights along with broader indices supported BSE's -- Sensex -- and NSE's -- Nifty -- to regain their crucial 16,600 and 5,000 mark respectively. On the sectoral front, BSE Auto, Capital Goods, Bankex, Oil & Gas, PSU, Realty and Metal indices have surged by about a percent each. In fact, all the major BSE sectoral indices are trading in green zone. The broader indices too were trading on a firm note. The market breadth on the BSE was positive; there were 1,032 shares on the gaining side against 385 shares on the losing side while 54 shares remained unchanged.

The BSE Sensex opened at 16,515.62; about 36 points higher compared to its previous closing of 16,479.58, and has touched a high of 16,655.45 while low remain its opening.

The index is currently trading at 16,647.35, up by 167.77 points or 1.02%. There were 28 stocks advancing against only 1 decline on the index.

The overall market breadth has made a strong start with 70.16% stocks advancing against 26.17% declines. The broader indices too were trading on a firm note; the BSE Mid cap and Small cap indices rose 1.01% and 0.78% respectively.

The top gaining sectoral indices on the BSE were, Auto up by 1.67%, CG up by 1.45%, Bankex up by 1.24%, Oil and Gas up by 1.23% and PSU up by 1.18%. While, there were no losers on the index.

The top gainers on the Sensex were M&M up by 2.72%, Cipla up by 2.17%, Bajaj Auto up by 2.01%, BHEL up by 1.73% and L&T up by 1.73%. While, Infosys down 0.53% remained the lone loser on the Sensex.

Meanwhile, India has given a strong signal that it will continue to trade with Iran despite pressure from the US. Iran too has stated that both the countries should continue to work together irrespective of what others like or do not like. India is in fact considering increasing trade with Iran through a bilateral preferential trade pact as per Joint Secretary in the Commerce Ministry, Arvind Mehta.

Trade between India and Iran amounted to $14 billion in 2010-11, of which a major part was the Indian import of crude oil. In the wake of sanctions from US and EU, Iran is looking at expanding this bilateral trade further. India too is keen on expanding trade as it believes that Iranian oil is critical for its development and that Iran can also be a good export destination for its food products. However, the two countries still face problems with regard to banking transactions for which Iran has sought permission to open a branch of Parsian Bank in Mumbai.

These comments are coinciding with the visit of US Secretary of State Hillary Clinton who is keen that India keeps its trade with Iran at a bare minimum level.  At a joint press conference with Clinton, External Affairs Minister S M Krishna has said, Iran is 'one of the critical destinations for our external trade'.

Commerce Secretary Rahul Khullar has also assured the Iranian business persons of resolving their problems, including setting up of Parsian Bank in India.

The S&P CNX Nifty opened at 4,984.15; about 10 points higher compared to its previous closing of 4,974.80, and has touched a high of 5,033.10 while low remain its opening.

The index is currently trading at 5,027.05, higher by 52.25 points or 1.05%. There were 48 stocks advancing against just 2 declines on the index.

The top gainers of the Nifty were IDFC up by 3.17%, M&M up by 2.78%, Reliance Infra up by 2.73%, Cairn up by 2.40% and Axis Bank up by 2.38%.

On the flip side, Ranbaxy down by 1.47% and Infosys down by 0.48% remained the only losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite was down 4.44 points or 0.18% to 2,404.15, Hang Seng was down 188.68 points or 0.93% to 20,141.96, Jakarta Composite was down 11.82 points or 0.29% to 4,117.24, Nikkei 225 was down 7.51 points or 0.08% to 9,037.55, Straits Times was down 5.59 points or 0.19% to 2,895.32 and KOSPI Composite was down by 2.10 points or 0.11% to 1,948.19.

On the flip side, KLSE Composite was up 3.46 points or 0.22% to 1,588.36 and Taiwan Weighted was up 8.83 points or 0.12% to 7,484.54. 

VOLATILE SESSION

Indian stock markets are going through a volatile trading session on Wednesday as the benchmark equity indices have slipped-back below the psychological 16,500 (Sensex) and 5,000 (Nifty) levels in early noon trades. The frontline indices showed mild recovery in late morning trades and was trading in an extremely tight range just above the previous closing levels. However, nervous market participants turned jittery in early noon trades following the European stock markets which after a flat to positive opening, slipped into the negative terrain as the uncertainty over European debt trouble was far from over since Greek leaders were busy in cross-party talks to form a government, and the chances for a coalition slim. Stock markets across the Asian region went back to their losing ways on Wednesday with most equity indices trading lower by half to one percent. Political uncertainty in Greece intensified concerns over Europe's onerous financial trouble and undermined investors' morale. Deepening the feeling of instability a staunch leftist is likely to stitch together a coalition government with the aim of tearing up Greece's bailout agreements, a move that would spark a dangerous escalation of the Euro-zone debt crisis. Back home, the concerns from money market showed little signs of dying down as the anemic rupee slipped closer to 54 against the US dollar despite recent measures from the central bank to support the beleaguered currency. Meanwhile, the quarterly earnings from banking majors like Union Bank and Punjab National Bank do not seem to have gone down well with the Street as investors have not only punished the two banks by around two and half a percent each but even pummeled the BSE's Bankex index which plunged over a percent. The high beta Realty and Metal counters too bore the brutal brunt of hefty selling pressure in the session. However, the gains in defensive - FMCG and IT counters did their bit by capping losses for the benchmark equity indices. Index heavyweight ITC bucked the weak trend prevailing in markets and rallied over four percent after declining almost 8% in last six days, after Citigroup opined that the government has proposed an amendment to the pricing methodology for an excise duty announced in March. The change would be positive for cigarette manufacturers as it would provide better pricing flexibility and margin upside.

Moreover, the broader markets traded on a negative note with moderate cuts of around half a percent in the afternoon trades. The bourses consolidated on large volumes of over Rs 0.9 lakh crore while the market breadth on BSE was in favor of declines in the ratio of 1386:1006 while 112 scrips remained unchanged.

The BSE Sensex is currently trading at 16,558.18 up by 12 points or 0.07% after trading as high as 16,615.74 and as low as 16,436.41. There were 11 stocks advancing against 19 declines on the index.

The broader indices were trading on a negative note; the BSE Mid cap index shed 0.18% and Small cap fell 0.42%.

On the BSE sectoral space, FMCG up 2.45%, Capital Goods up 0.93%, IT up 0.73%, TECk up 0.34% and Healthcare up 0.12% were the only gainers, while Realty down 1.81%, Metal down 1.01%, Oil & Gas down 0.92%, PSU down 0.86% and Bankex down 0.85% were the major laggards in the space.

ITC up 4.49%, TCS up 2.54%, BHEL up 1.62%, L&T up 1.52% and HUL up 0.95% were the major gainers on the Sensex, while DLF down 2.60%, Sterlite down 1.92%, NTPC down 1.89%, M&M down 1.63% and Coal India down 1.61% were the major losers in the index.

Meanwhile, the Petroleum and Oil Ministry has suggested that the government should hike the excise duty on diesel cars to offset the benefits of subsidized diesel enjoyed by them. The suggestion is in line with the view that the rich should not benefit from subsidies as it is not meant for them.

Diesel is the most consumed fuel in the country and is sold at a subsidized rate to lessen transportation costs. Prices of petrol on the hand have been deregulated. With the recent surge in prices of crude oil, petrol which is predominantly used in passenger cars, has seen a substantial hike. However diesel continues to be subsidized by the government.

As a result the demand for passenger cars has shifted from petrol cars to diesel cars. Hence it is suggested that the price of these be raised to discourage their consumption and prevent the misuse of the subsidy.

The government has budgeted Rs 40,000 crore as fuel subsidy for the 2012-13 fiscal. The Finance Minister has targeted to bring down the subsidy bill to 2% of GDP in the current fiscal. The government is also targeting better management of subsidies under the public distribution system (PDS) so that it reaches the intended beneficiaries.

As per a Planning Commission report using a particular method of measuring leakages, the government spends Rs 3.65 through budgetary food subsidies to transfer Re 1 to the poor.

The S&P CNX Nifty is currently trading at 5,006.85, higher by 6.90 points or 0.14% after trading as high as 5,013.20 and as low as 4,959.65. There were 19 stocks advancing against 31 declines on the index.

The top gainers on the Nifty were ITC up 4.50%, TCS up 2.62%, BHEL up 1.86%, L&T up 1.72% and BPCL up 1.30%.

JP Associates down 2.65%, SAIL down 2.46%, DLF down 2.19%, Sterlite down 2.07% and Grasim down 2.03% were the major losers on the index.

In the Asian space, Shanghai Composite plunged 1.59%, Hang Seng declined 0.72%, Jakarta Composite sank 1.20%, KLSE Composite declined 0.26%, Nikkei 225 got pounded by 1.49%, Straits Times Index dropped by 0.47%, KOSPI Composite slumped 0.85% and Taiwan Weighted dived 0.93%.

The European markets got off to a positive start as France's CAC 40 added 0.24%, Germany's DAX rose added 0.55% and United Kingdom's FTSE gained 0.02%. 

CLAW BACK

Indian equity markets recovered lost ground after a weak start and currently edged up into positive territory following some strong buying across the board. Meanwhile, the NSE benchmark clawed back above the 5,000 level, while Sensex gained 59 points. In the currency market, the rupee opened lower amid renewed concerns about the euro zone. On sectoral FMCG, capital goods and information technology stocks were currently trading modestly higher. Pharmaceuticals, power and automobile stocks were also trading off their lows now. Metal, oil and realty stocks continue to trade weak. On the global front, Asian stock markets fell on Wednesday, spooked by disappointing US corporate earnings and fears that political turmoil in debt-crippled Greece is pushing it closer to financial disaster. Back home, the market breadth favoring negative trend; there were 1,042 shares on the gaining side against 1,261 shares on the losing side while 126 shares remained unchanged.

The BSE Sensex is currently trading at 16,605.40, up by 59.22 points or 0.36%. The index has touched a high and low of 16,615.74 and 16,436.41 respectively. There were 13 stocks advancing against 17 declines on the index.

The broader indices, too witnessed profit booking; the BSE Mid cap index up by 0.01% and Small cap index down by 0.17%.

The few gaining sectoral indices on the BSE were, FMCG up by 2.71%, CG up by 1.70%, IT up by 0.89%, TECk up by 0.55% and HC up by 0.42%. While, Realty down by 1.20%, Oil & Gas down by 1.10%, PSU down by 0.51%, Metal down by 0.45% and Bankex down by 0.43% were the top losers on the index.

The top gainers on the Sensex were ITC up by 4.86%, TCS up by 2.55%, BHEL up by 2.48%, L&T up by 2.04% and Wipro up by 1.16%.

On the flip side, DLF down by 2.47%, M&M down by 1.85%, Reliance down by 1.79%, Coal India down by 1.46% and NTPC down by 1.28% were the top losers on the Sensex.

Meanwhile, the industry body FICCI is of the opinion that monopoly of Coal India should be put to an end and the government should allow private participation in the mining of coal. FICCI president R V Kanoria is of the view that power companies are facing acute shortages of coal which is crippling industrial development in the country. Hence, radical steps like allowing private players in coal mining need to be taken to bridge the demand and supply gap.

FICCI has suggested that private players should be allowed in coal mining to accelerate the process and create an atmosphere of healthy completion. Also the government should reduce its stake in PSUs to below 50% which would be sufficient enough for it to be part of all major decision making processes in the company but at the same time would help make PSUs observe basic market discipline.

FICCI has gone ahead and criticized the tariff structure in the country. It has pointed out that distribution is the weakest link in the power sector and populist policies rather than market dynamics rule tariff revisions. As a result the agriculture sector gets its power virtually free whereas the burden is passed on to the industry. Subsidies intended for target groups were enjoyed by all and misused by vested interests.

It is estimated that India will need to import 28% of its coal requirements by the end of the 12th Plan as compared to the current 15%. Import dependence for petroleum products is likely to be as high as 80%. Further, the scenario in natural gas sector is also gloomy. The development of natural gas industry is being foiled by distortions in pricing mechanism. The share of natural gas in the overall energy mix is only 10% against the global average of 24%.    

The S&P CNX Nifty is currently trading at 5006.70, up by 6.75 points or 0.14%. The index has touched a high and low of 5016.25 and 4,959.65 respectively. There were 22 stocks advancing against 28 declines on the index.

The top gainers of the Nifty were ITC up by 5.00%, BHEL up by 2.67%, TCS up by 2.62%, L&T up by 1.80% and BPCL up by 1.75%.

On the flip side, JP Associates down by 3.67%, SAIL down by 2.83%, DLF down by 2.34%, Kotak Bank down by 2.32% and Cairn down by 2.28% were the major losers on the index.

All the Asian equities were exhibiting the choppy trade; Shanghai Composite declined 1.62%, Hang Seng descended 0.82%, Jakarta Composite plunged 1.30%, KLSE Composite slid 0.20%, Nikkei 225 plummeted 1.49%, Straits Times lost 0.71%, KOSPI Composite surrendered 0.85% and Taiwan Weighted skid by 0.93%.