MARKETS TURN POSITIVE

Erasing early morning losses, the markets have slipped into green on the back of positive Asian cues and a drop in crude prices after the International Energy Agency warned that high energy prices might curb oil demand. Initially weak global trend followed by lower closing in the US market influenced the trading sentiment in the early trade. Markets across the globe remained weak after Japan said the crisis at its crippled nuclear plant was as serious as the 1986 Chernobyl accident, though much less radiation has leaked. However, on the global front, Japanese stocks led recovery in Asian markets on reports that Japan's Renesas Electronics Corp. would restart a key factory that was hit by last month's quake in June 2011, a month earlier than expected. Back home, on the BSE Sectoral front, stocks from Auto, Capital Goods and Bankex counters were garnering huge gains, while, stocks from the Metal space were only witnessing profit booking. The 30 share barometer index was trading above its 19300 mark while the broadly followed 50 scrips index --Nifty--on National Stock Exchange (NSE) too was comfortable above its 5800 physiological level respectively. The broader indices too were contributing to the rally and were up with gains of over 0.50% respectively. The overall market breadth on BSE was in the favour of advances which lashed out declines in the ratio of 1535:760, while 70 shares remained unchanged.

The BSE Sensex is currently trading at 19,398.72, up by 136.18 points or 0.71%. The index has touched a high of 19,398.78 and a low of 19,101.63 respectively. There were 21 stocks advancing against 9 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices gained 0.70% and 0.90 % respectively. 

The top gaining sectoral indices on the BSE were, Auto up by 1.24%, CG up by 1.11%, Bankex up by 0.80% IT up by 0.63%, and CD was up by 0.55%. While Metal down 0.03% was the only losers on the index.

The top gainers on the Sensex were JP Associates up by 4.03%, Hero Honda up 2.19%, Tata Motors up by 2.07%, HDFC up by 1.96% and HUL up by 1.83%.

On the flip side, Sterlite Industries down by 0.78%, ONGC down by 0.71%, Jindal Steel down by 0.56%, Tata Power down 0.44% and Hindalco Industries down 0.19% were the top losers on the index.

Meanwhile, India's business process outsourcing (BPO) industry is expected to expand by 23.2% in the current calendar year to touch $1.4 billion as compared with $1.14 billion in 2010, says a recent study by renounced technology consultant Gartner. The expansion will come from both increase in volume and value.

The firm also expects growth to continue in coming years as well with the size of Indian outsourcing industry increasing to $2.47 billion in 2014. That figure would have more than doubled the current size of BPO industry. "Changing demographics, increasing affluence and economic growth in Asia/Pacific continues to drive shared services and BPO adoption", Gartner, said.

However, despite rapid growth seen in last few years, India is still only the second largest BPO market in the world, according to the report. The country with the largest business process outsourcing market is Australia, which is more than three times as large as the BPO market in India. Growth in India though is much faster and long term potential for Indian BPO industry is high and increasing further. India will, as a result, catch Australia perhaps within the current decade. 

Since 2008, a host of US and European multi-national BPO services providers, who concentrated primarily on the offshore market, have started focusing on the Indian domestic market. However, analysts point out that in order to target the Indian market, outsourcers will have to adopt cost and revenue models that are different from the ones that they use elsewhere. The trend is already visible with many large players looking to develop India specific models. 

Banking and financial services, communications, government, technology and travel and transportation were the largest BPO services consumers in the region. With technology intensity in most businesses increasing, BPO market is expected to continue growing at a rapid pace, with any potential moderation in growth from the rich world being compensated by increasing demand from the emerging markets where overall economic growth is much faster.

The S&P CNX Nifty is currently trading at 5,823.35, higher by 37.65 points or 0.65%. The index has touched a high and a low of 5,841.80 and 5,735.55 respectively. There were 36 stocks advancing against 13 declining one's, while one remained unchanged on the index.

The top gainers of the Nifty were JP Associate up 4.03%, Hero Honda up by 2.26%, Hindustan Unliver (HUL) and Kotak Bank up by 2.16% and Tata Motors up by 2.03%.

Sun Pharma down by 0.87%, ONGC down by 0.83%, Sterlite Industries down by 0.78%, Jindal Steel down by 0.68% and Tata Power down 0.58% were the major losers on the index.

All the Asian markets barring Chinese Shanghai were trading in the green; Hang Seng gained 0.21%, Jakarta Composite added 0.24%, KLSE Composite rose 0.06%, Nikkei 225 increased 0.70%, Straits Times soared 0.41%, Seoul Composite surged 0.73% and Taiwan Weighted was up 0.34%.

On the flip side, Shanghai Composite was down by 0.24%.