BOUNCE BACK

The Indian equity markets have bounced back from the negative territory to the positive in late morning session as investors turn slightly positive about on metals stocks and some short covering was being seen in the Auto stocks too. Meanwhile, most of the other Asian markets were also trading in green and US index futures were showing similar trend. Though, the markets are trading in green but investors remain jittery after Western forces struck targets in Libya. Brent climbed more than $2 on Monday to top $116 after western forces launched a military campaign against Libya. Back home NSE Nifty and BSE Sensex were trading below their physiological level of 5,400 and 18,000 mark respectively. In the BSE sectoral indices Realty, IT and TECk counters were still facing some selling pressure. Broader markets were trading mixed the BSE Mid cap index was down 0.01%, while Small cap index was up by 0.10%.  The overall market breadth on BSE was in the favour of declines which slightly outnumbered advances in the ratio of 1266:1212, while, 110 shares remained unchanged.

Tata Steel trades higher as the company has successfully completed the issuance of perpetual hybrid securities worth Rs 1,500 crore. With the issuance of this bond the company became the first Indian corporate to issue securities of such kind. ICICI Bank and J.P. Morgan Securities India were the mandated lead arrangers for the issuance. The unique features of the securities are that they are perpetual in nature with no maturity or redemption and are callable only at the option of the company. The distribution rate (which may be deferred at the company's option) on the securities is set at 11.8 percent, with a step up provision if the securities aren't called after 10 years.

The BSE Sensex gained 43.81 points or 0.25% to 17,922.62. The index has touched a high of 18,007.73 and a low of 17,792.17 respectively.

The BSE Mid cap index was down 0.01%, while Small cap index was up by 0.10%. 

In the BSE sectoral indices Auto up 0.59%, FMCG up 0.44%, HC up 0.44%, CG up 0.38% and CD up 0.34% were the main gainers. However, Realty down by 0.44%, IT down by 0.34% and TECk down by 0.29% were the losers on the index.

The top gainers on the Sensex were M&M up 1.52%, HDFC up by 1.35%, Tata Steel up 1.12%, Sterlite Industries up by 1.04% and Tata Motors and up were up by 0.93%.

Hindalco Industries down by 2.18%, Cipla down by 0.78%, Reliance Communication down 0.77%, Infosys down by 0.71% and Maruti Suzuki down 0.31% were the top losers on the index.

Tyre stocks are trading lower on account of higher rubber prices which continued their recovery mood. Apollo Tyres climbed 1.69%, CEAT gained  1.32%, MRF advanced 1.41  and JK Tyre & Industries surged 0.99% .Rubber prices rebounded on easing of demand concerns caused by Japan earthquake and closure of automobile plants and market returned back to fundamentals. Natural rubber continues to be supported by higher prices of crude oil and tight supplies in producing countries.

The S&P CNX Nifty advanced 13.75 points or 0.26% at 5,387.45. The index has touched a high of 5413.30 and a low of 5348.20 respectively.

The top gainers of the Nifty were Sun Pharma up by 2.20%, M&M up by 1.85%, SAIL up by 1.53%, Dr Reddy up by 1.49% and Suzlon up 1.32%.

The top losers of the index were Ranbaxy down by 4.47%, Hindalco down by 2.13%, Reliance Communication down by 0.91%, Reliance Power down by 0.87% and Infosys down by 0.71%.

Ranbaxy declined over 4% on reports that Mylan has sued US FDA for Lipitor. The company is seeking to block Ranbaxy's lipitor copy. Lipitor was estimated to add $ 500-600 million to Ranbaxy's sales.

All other Asian equity indices barring; Shanghai Composite,  were trading in the positive terrain at this point of time. Hang Seng surged 1.07%, Jakarta Composite added 0.42%, KLSE Composite inched up 0.08%, Straits Times increased 1.26%, Seoul Composite rose 1.13% and Taiwan Weighted was up by 0.87%.