RELIANCE HOLDS THE MARKETS

The local equity markets have recovered a bit but are still trading in negative terrain in late morning session. Meanwhile, the Index biggie RIL has provided markets the much needed respite, putting a break to further decline, RIL was up 0.64% and has recovered almost 34 points from the day's low. The reason for the strength in RIL shares is said due to the gain from higher petrochemical prices arising out of the closures of petrochemical plants in parts of quake hit Japan. In addition, crude oil prices are expected to rise near term, boosting gross refining margins (GRMs) for oil refiners like RIL. All the Asian markets continue to trade in red with deep cuts and US Dow futures too has shed 225 points in screen trade on too much uncertainty over the implications of the earthquake in Japan and the the global economy.  Back home, the 30-share Sensex was down 257 points at 18,182.28 after falling to 17920.55 in the first hour of trading. The 50-share Nifty was down 71.10 points at 5460 while all the sectoral indices were trading in red, Realty and Power shed more than two percent. The broader markets were also trading in red; the BSE Mid cap and Small cap indices shed 1.39% and 1.28% respectively. The overall market breadth was in favour of declines, outnumbering advances in the ratio of 1836:590, while, 76 shares remained unchanged.

The BSE Sensex declined 257.20 points or 1.39% at 18,182.28. The index has touched a high of 18,238.79 and a low of 17,920.55 respectively.

The BSE Mid cap and Small cap indices shed 1.39% and 1.28% respectively.

All sectoral indices on the BSE were trading in red; Realty down by 2.97%, Power down by 2.03%, Metal down by 1.86%, IT down by 1.83% and CG down 1.81% were the major losers on the index.

Maruti Suzuki down by 2.80%, Jaiprakash Associates down by 2.73%,Tata Power down by 2.71%, Wipro down by 2.36% and Hindalco down by 2.32% were the top losers on the index, while RIL  up  0.64% was the only gainer on the BSE Sensex.

Central Bank of India is currently trading at Rs. 156.30, up by 1.25 points or 0.81% as Central Bank of India's Rs 2,500 crore rights issue would open on March 24 and close on April 7. The bank has proposed to issue equity shares on a rights basis in the ratio of 3 shares for every 5 shares held by shareholders. The bank has fixed March 18 as record date for the purpose of ascertaining shareholders entitled for rights issue.The board has already approved Rs 103 as issue price for every right equity shares. The committee of directors of the bank took the decision of rights issue at its meeting held on March 14, 2011. The bank is likely to raise money by this month-end. The issue is a part of recapitalization package announced by the government last year.

The S&P CNX Nifty trimmed 71.10 points or1.29% at 5,460.40. The index has touched a high of 5,470.15 and a low of 5,373.65 respectively.

The top losers of the index were Reliance Power down by 4.01%, HCL Technology down by 3.53%, Sesa Goa down 3.07%, Suzlon down 2.80% and  DLF down 2.76%.

On the other hand, Sunpharma up by 1.30% , BPCL up 1.13%, Reliance Industries up by 0.86%, Siemens up 0.31% and Reliance Capital up 0.19%  were the only gainers on the Nifty.

Shares of tyre manufacturers were trading higher, on account of fall in rubber prices. Tyers companies like Apollo Tyres , CEAT , MRF trading higher. HEG has jumped on getting board's approval to buy-back shares at Rs 350 per share.

All the Asian markets continue trade in red with deep cuts; Shanghai Composite declined 2%, Hang Seng shed 3.15%, Jakarta Composite trimmed 2.29%, KLSE Composite dropped by 1.14%, Nikkei 225 plunged 10.55%, Straits Times slid 2.43%, Seoul Composite skid 2.40% and Taiwan Weighted plummeted by 3.35%.