The Indian benchmarks turned choppy after a decent
start and are hovering around its previous closing value due to lack of
global and domestic cues. BSE's Sensex lost its crucial 15,500 mark
because of selling by funds and retail investors in auto, realty, fast
moving consumer goods and banking stocks. Bank stocks were mixed after
the Reserve Bank of India on December 30, 2011, issued draft guidelines
outlining proposed implementation of Basel III capital regulation in
India. However, aviation stocks rose after state-owned oil companies cut
jet fuel price by over a percent in line with softening in the
commodity's international rates. Moreover, motorcycle major Bajaj Auto
tumbled despite reporting its highest ever monthly sales at 3,05,690
units for December, 2011 against 2,76,803 units in the corresponding
month last year recording jump of 10%, this excludes exports. The
overall market breadth on BSE is in the favour of advances which have
thrashed declines in the ratio of 1167:857, while 86 shares remained
unchanged.
The BSE Sensex is currently trading at 15,447.22, down by 7.70 points or 0.05%. The index has a touched a high and low of 15,541.95 and 15,415.99 respectively. There were only 14 stocks advancing against 16 declines on the index.
The broader indices too were trading with marginal gain; the BSE Mid cap and Small cap indices edged higher 0.01% and 0.47% respectively.
The top gainers on the index were Oil & Gas up 0.76%, Consumer Durables up 0.60%, TECk up 0.17%, PSU up 0.11% and Metal up 0.07% while Auto down 1.18%, Realty down 0.82%, FMCG down 0.69%, Bankex down 0.38% and Power down 0.34% were the top loser on the index.
The top gainers on the Sensex were Coal India up by 1.89%, ONGC up by 1.09%, Sterlite Industries up 0.95%, Tata Motors was up by 0.84% and ICICI Bank up by 0.80%.
On the flip side, Bajaj Auto down by 4.88%, Hero MotoCorp down 3.50%, DLF down 2.68%, Hindalco down 2.68% and M&M down 1.71% were the top loser on the Sensex.
Meanwhile, worried about the exodus of the foreign funds from the Indian markets, the government has taken a bold step allowing foreign individual investors, pension funds and trusts to directly invest in Indian equities. Under the new scheme, investors called 'Qualified Foreign Investors' (QFIs) like foreign individual, foreign pension fund or even a foreign trust will be able to invest directly in the Indian equity market. The new scheme is expected to be operational from January 15. The QFIs will have a separate ceiling from FIIs and non-resident Indians (NRIs). A QFI can hold up to 5 per cent of paid-up equity of a company and all QFIs put together cannot hold more than 10 per cent in a company.
A finance ministry statement said that 'this has been done in order to widen the class of investors, attract more foreign funds, reduce market volatility and deepen the Indian capital market.'
However, investment is restricted to QFIs from countries that are compliant with the Financial Action Task Force (FATF) recommendations and are signatories to the international body of securities market, IOSCO's, memorandum of understanding.
According to the SEBI's data, net outflows exceeded $450 million last year, FIIs pulled out money on account of growth falling below 7% and widely-publicized difficulties in obtaining regulatory clearances. With the new scheme investors from over 80 countries can access the Indian equity market, barring Pakistan and few other countries.
The foreign investors are already allowed direct access to Indian mutual fund schemes so it's a step further in the same direction. The measures are intended to widen the investor class, attract more foreign funds, reduce market volatility and deepen the Indian capital market.
The S&P CNX Nifty is currently trading at 4,617.30, lower by 7.00 points or 0.15%. The index has touched a high and low of 4,645.95 and 4,607.00 respectively. There were 21 stocks advancing against 27 declines while 2 stocks remain unchanged on the index.
The top gainers of the Nifty were Coal India up by 2.03%, ONGC up by 1.42%, Sterlite up by 1.34%, GAIL up by 1.32% and ICICI Bank up by 1.26%.
On the flip side, Bajaj Auto down by 4.96%, Hero MotoCorp down by 3.08%, DLF down 2.54%, Hindalco down 2.37% and Kotak Bank down by 1.93% remained the top losers on the index.
The BSE Sensex is currently trading at 15,447.22, down by 7.70 points or 0.05%. The index has a touched a high and low of 15,541.95 and 15,415.99 respectively. There were only 14 stocks advancing against 16 declines on the index.
The broader indices too were trading with marginal gain; the BSE Mid cap and Small cap indices edged higher 0.01% and 0.47% respectively.
The top gainers on the index were Oil & Gas up 0.76%, Consumer Durables up 0.60%, TECk up 0.17%, PSU up 0.11% and Metal up 0.07% while Auto down 1.18%, Realty down 0.82%, FMCG down 0.69%, Bankex down 0.38% and Power down 0.34% were the top loser on the index.
The top gainers on the Sensex were Coal India up by 1.89%, ONGC up by 1.09%, Sterlite Industries up 0.95%, Tata Motors was up by 0.84% and ICICI Bank up by 0.80%.
On the flip side, Bajaj Auto down by 4.88%, Hero MotoCorp down 3.50%, DLF down 2.68%, Hindalco down 2.68% and M&M down 1.71% were the top loser on the Sensex.
Meanwhile, worried about the exodus of the foreign funds from the Indian markets, the government has taken a bold step allowing foreign individual investors, pension funds and trusts to directly invest in Indian equities. Under the new scheme, investors called 'Qualified Foreign Investors' (QFIs) like foreign individual, foreign pension fund or even a foreign trust will be able to invest directly in the Indian equity market. The new scheme is expected to be operational from January 15. The QFIs will have a separate ceiling from FIIs and non-resident Indians (NRIs). A QFI can hold up to 5 per cent of paid-up equity of a company and all QFIs put together cannot hold more than 10 per cent in a company.
A finance ministry statement said that 'this has been done in order to widen the class of investors, attract more foreign funds, reduce market volatility and deepen the Indian capital market.'
However, investment is restricted to QFIs from countries that are compliant with the Financial Action Task Force (FATF) recommendations and are signatories to the international body of securities market, IOSCO's, memorandum of understanding.
According to the SEBI's data, net outflows exceeded $450 million last year, FIIs pulled out money on account of growth falling below 7% and widely-publicized difficulties in obtaining regulatory clearances. With the new scheme investors from over 80 countries can access the Indian equity market, barring Pakistan and few other countries.
The foreign investors are already allowed direct access to Indian mutual fund schemes so it's a step further in the same direction. The measures are intended to widen the investor class, attract more foreign funds, reduce market volatility and deepen the Indian capital market.
The S&P CNX Nifty is currently trading at 4,617.30, lower by 7.00 points or 0.15%. The index has touched a high and low of 4,645.95 and 4,607.00 respectively. There were 21 stocks advancing against 27 declines while 2 stocks remain unchanged on the index.
The top gainers of the Nifty were Coal India up by 2.03%, ONGC up by 1.42%, Sterlite up by 1.34%, GAIL up by 1.32% and ICICI Bank up by 1.26%.
On the flip side, Bajaj Auto down by 4.96%, Hero MotoCorp down by 3.08%, DLF down 2.54%, Hindalco down 2.37% and Kotak Bank down by 1.93% remained the top losers on the index.
Most
of the Asian equity indices were trading largely on pessimistic note;
Jakarta Composite was down 11.68 points or 0.31% to 3,810.31, Seoul
Composite was down 2.47 points or 0.14% to 1,823.27 and Taiwan Weighted
was down by 72.08 points or 1.02% to 7,000.00. On the flip side,
Shanghai Composite was up by 26.57 points or 1.22% to 2,200.13 remained
the lone gainer.
However, Stock markets in China, Hong Kong, Japan and Singapore remained shut for extended New Year holidays. 
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