MARKETS CONTINUE TO TRADE IN RED

Indian benchmarks- Sensex, Nifty lost over 0.14% in the late morning session due to sustained selling by funds amid absence of any market moving factor from overseas. Sentiments got dampen on weak quarter earnings by some leading companies. Investors remained cautious ahead of key macroeconomic data such as industrial production and inflation which is expected in the early part of the week; the December IIP data on Tuesday and January wholesale price index (WPI) inflation figure on Thursday. On the global front, most of the Asian markets are closed today and the one which are open are trading in the green terrain at this point of time. Meanwhile, China has become the world's biggest trading nation last year as measured by the sum of exports and imports of goods, surpassing the US. Back home, the traders were seen piling up position in Consumer Durables, Health Care and Realty while selling was seen in FMCG, Capital Goods and TECk sectors. In scrip specific development, SKS Microfinance was locked at upper circuit on conclusion of two microfinance securitization transactions aggregating to Rs 390 crore. Hexaware Technologies gained on better-than-expected Q4 profit. State run explorer ONGC traded was trading under pressure ahead of reporting Q3 earnings. Bharti Airtel shares edged lower on concerns that the company may be asked to pay Rs. 650 crore in penalties for licence violation between 2000 and 2005. BEML slumped on reporting net loss of Rs 63.34 crore in Q3 December 2012, compared with net profit of Rs 40.07 crore in Q3 December 2011.The NSE Nifty and BSE Sensex were managing to hold their psychological 5850 and 19,400 levels respectively.

The market breadth on BSE was positive; advances: declines in the ratio of 1014: 1000.

The BSE Sensex is currently trading at 19456.59 down by 28.18 points or 0.14% after trading in a range of 19543.44 and 19450.47. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.04% and Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were, Consumer Durables up by 0.82%, Health Care up by 0.57%, Realty up by 0.57%, PSU up by 0.27% and Auto up by 0.23% while, FMCG down by 0.63%, Capital Goods down by 0.47% , TECk down by 0.08%  and Oil & Gas down by 0.05%  were the only losers on the index.

The top gainers on the Sensex were Dr Reddys Lab up by 2.44%, Cipla up by 1.92%, Tata Motors up by 1.79%, Sterlite Industries up by 1.48% and Hindustan Unilever up by 1.41%.

On the flip side, ITC was down by 1.51%, Bharti Airtel was down by 1.26%, Hero MotoCorp was down by 1.16%, HDFC  was down by 0.83% and Coal India was down by 0.77% were the top losers on the Sensex.

Meanwhile, the European Union (EU) has underlined the need of more negotiations to sort out the remaining issues before a free trade agreement (FTA) with India is signed. During a special summit in Brussels, the EU leaders expressed the importance of building up bilateral trade relations with key emerging economies such as India, which could be 'very beneficial for promoting growth and employment'.

As per the European Union leaders, it remained committed to further development of the multilateral trading system and its immediate focus is on developing bilateral trade relations, which can make a positive contribution to the multilateral system. The EU leaders stressed the need for 'prioritizing, those negotiations that will provide most benefit in terms of growth and jobs. Further, the heads of state and government of the EU recommended that all efforts should be made to pursue agreements with key partners and build the tangible progress through the EU's bilateral trade agenda.

Concerned over jobs and growth in European region, the EU leaders said that the European Council looks forward to the report of the EU-US high level working group on jobs and growth and its recommendations. The European Commission and the European Council are advised by them to follow up on these recommendations without delay during the current presidency, they added. Moreover, to achieve greater trans-Atlantic regulatory convergence, the EU leaders also reaffirmed support for a comprehensive trade agreement.

The S&P CNX Nifty is currently trading at 5,895.20 up by 8.30 points or 0.14% after trading in a range of 5,924.15 and 5,887.15. There were 22 stocks advancing against 28 declines on the index.

The top gainers of the Nifty were Dr Reddy's Laboratories up by 2.47%, Axis Bank up by 2.32%, Cipla up by 2.21%, Tata Motors up by 1.89% and HUL up by 1.21%.

On the flip side, IDFC down by 2.19%, Bharti Airtel down by 1.74%, ITC down by 1.61%, ACC down by 1.49% and HDFC down by 1.23%, were the major losers on the index.

Majority of bourses in Asia remained shuttered for the Lunar New Year, except Jakarta Composite was up 15.86 (0.35%). Hong Kong, China, Taiwan, Singapore and Malaysia are all closed. Malaysia will reopen on February 12, Hong Kong and Singapore will resume trading on February 13 and Taiwan will reopen on February 14.