MILD RECOVERY

Making a partial recovery after a two-session's decline, local bourses have added some more points to their kitty on the back of bargain buying by funds and investors albeit a weakening trend in overseas markets. However, global jitters about the wobbly financial health of the US and the Euro zone amid continued stalemate on their unsustainable debt levels to some extent has prevented the Indian market men to build any heft position in the light of dearth of any major positive trigger. On the global front, U.S. stocks ended lower on Monday as bank shares bore the brunt of investor frustration over governments' inability to solve debt crises in the United States and Europe. Meanwhile, most of the Asian shares were trading in red for the fourth consecutive session amid concern U.S. lawmakers will fail to reach a deal on the country's debt limit and Europe's worsening crisis will slow the global economic recovery. However, the U.S. future indices were showing an uptick in the screen trade. Back home, the only solace came into the markets with easing crude oil prices which fell on Monday due to growing fears of a sovereign debt default on either side of the Atlantic and on the possibility of another emergency stock release from the International Energy Agency. On the BSE Sectoral front, stocks from Consumer Durable, Information Technology and TECk counters were enticing maximum traction, while stocks from Realty and Auto counters were boring the brunt of profit booking at higher levels. The 30 scrip sensitive index-Sensex- after breaching the 18500 mark regained it and is currently trading well above it. The 50 share index too capturing gains of over 10 points is currently trading above the 5550 level. The broader indices too doing well for themselves are outperforming their larger counterparts, up with gains of over 0.30% each. The overall market breadth was much towards the favour of advances which thumped declines in the ratio of 1417:816, while 124 shares remained unchanged.
The BSE Sensex is currently trading at 18,554.85, up by 47.81 points or 0.26%. The index has touched a high and low of 18,577.77 and 18,491.13. There were 17 stocks advancing against just 12 declining one's the index, while 1 stock remained unchanged.
The broader indices kept outperforming their larger counterparts; the BSE Mid cap and Small cap indices were up by 0.44% and 0.69% respectively.
The top gaining sectoral indices on the BSE were, CD up by 1.52%, IT up by 0.61%, TECk up by 0.55%, HC up by 0.42% and Oil and Gas up by 0.40%. While, Realty down by 0.77%, Auto down by 0.44% were the only losers on the index.
The top gainers on the Sensex were NTPC up by 1.37%, Sterlite Industries up by 1.31%, Infosys up by 0.81%, Bharti Airtel up by 0.78% and Hindalco Industries was up by 0.69%.
On the flip side, Tata Motors was down by 1.99%, DLF was down by 1.26%, Hero Honda down by 0.84%, HUL down by 0.72% and Maruti Suzuki was down by 0.59% were the top losers on the Sensex.
Meanwhile, the foreign institutional investors (FIIs) infused around Rs 8,000 crore or $2 billion in the domestic stock and debt market so far this month, experts have the opinion that investment from FIIs will continue to increase in the coming months.
As per the information available with market regulator SEBI, the FIIs, in July made gross investment of around Rs 43,994 crore in equities and debt securities, however, they also sold shares and bonds worth around 36, 195 crore, resulting of net investment of Rs 7,799 crore. Experts say, this increase in FII flows is due to moderation in crude oil prices and inflation. FIIs were quite optimistic on the equity market; they invested around Rs 6,475 crore in equities and Rs 1,324 crore in securities market. Investors had avoided the stocks markets in emerging countries such as India in the first six months of the 2011 as these countries battled inflation. Besides, high interest rate was also considered as a risk to these countries. However, foreign investors were interested in the debt market during the same period of time, FII invested around Rs 9,948 crore in debt market whereas they invested around Rs 2,670 crore in stock markets. Market experts believe that, FIIs will remain bullish in the remaining six months of the current financial year, and investment from FIIs is expected to increase.
During 2010, FIIs purchased stocks and bonds worth around Rs 10 lakh crore, in the same period, Foreign investors also sold shares and bonds worth around Rs 7,80,000 crore, which resulted into net investment of Rs 1.75 lakh crore for the year, which is a record. During the same year, the number of FIIs registered with SEBI marginally increased to 1,728 as of July 2011 from 1,718 at the end of 2010.
The S&P CNX Nifty is currently trading at 5,578.65, higher by 11.60 points or 0.21%. The index has touched a high and low of 5,586.20 and 5,557.90 respectively. There were 34 stocks advancing against 15 declines, while 1 stock remained unchanged on the index.
The top gainers of the Nifty were NTPC up by 1.48%, Sterlite Industries up by 1.31%, Sunpharma up by 1.01%, Axis Bank up by 0.99% and Siemens up by 0.85%.
On the flip side, DLF down by 1.23%, IDFC down by 0.92%, HUL down by 0.89%, Maruti Suzuki down by 0.79% and Tata Motors down by 0.73% were the major losers on the index.

Most of the Asian equity indices were trading in red; Shanghai Composite declined 0.52%, Hang Seng slid 0.29%, Jakarta Composite lost 0.58%, KLSE Composite skid 0.44% and Nikkei 225 dropped 0.49%.

On the flip side, Straits Times up by 0.22%, Seoul Composite gained 0.30%, Taiwan Weighted rose 0.03% were the gainers among the Asian pack