TURN AROUND

Indian equity markets although have been trading lackluster since early deals, the downside of the bourses has been capped on hopes that the European Central Bank (ECB) may employ new tactics to counter the perennial debt crisis. Further, with the positive opening of European markets, recovery of the bourses looks imminent. 30 share barometer index of Bombay Stock Exchange (BSE), Sensex, hovering tad below the previous closing level, is currently holding the 17300 bastion. However, the widely followed 50 share barometer index of National Stock Exchange (NSE), Nifty, too holding near its neutral line, is gyrating sub 5250 crucial mark. Bucking the trend, broader indices are showcasing positive movements.

On the global front, much awaited opening of European markets was a positive one after a media report suggested that the European Central Bank planned to buy unlimited amounts of short-term debt to ease the region's financial crisis. Meanwhile, Asian counterparts too have reversed losses to mostly trade in green.

Sector-wise, Information Technology, Realty and Bankex counters are topping the list of gainers on BSE, while stocks of Fast Moving Consumer Goods, Power and Capital Goods, languishing the bottom, are sustaining the downtrend of Indian equity markets. The overall market breadth on BSE is in the favour of advances which have outnumbered declines in the ratio of 1236:1142, while 147 shares remained unchanged.

The BSE Sensex is currently trading at 17,309.80, down by 3.54 points or 0.02% after touching a high of 17339.25 and low of 17294.74. There were 14 stocks advancing against 16 declines on the index.

The broader indices were trading in green; the BSE Mid cap and Small cap indices were trading higher by 0.15% and 0.12% respectively.

The top gainers on the BSE sectoral space were, IT up by 2.10%, TECk up by 1.49%, Realty up by 0.33%, Bankex up by 0.32% and Health Care up by 0.22%. While FMCG down by 1.44%, Power down by 0.81%, Capital Goods down by 0.79%, Consumer Durable down by 0.51% and Oil & Gas down by 0.41% were the top losers on the sectoral space.

The top gainers on the Sensex were Wipro up by 3.61%, Infosys up by 3.19%, Jindal Steel up by 2.13%, ICICI bank up by 1.36% and Maruti Suuzki up by 1.29%. On the flip side, BHEL down by 3.03%, ITC down by 2.24%, Bharti Airtel  down by 1.61%, Hero MotoCorp down by 0.82% and Bajaj Auto down by 0.62% were the top losers on the Sensex. 

Though India's economic growth has slipped to 5.5% during April-June of 2012-13, advisory firm KPMG opined that India is performing better than many countries. It reaffirmed that in the current environment of global economic slowdown, the most important part is that the country is still growing.

It pointed out that world's largest economy, the US grew at 1.5% in 2011, versus 3.1% in 2010, while, Germany's GDP grew by 3%, though in 2010 it was 3.7%. It emphasized that the focus should be on how this turbulent journey is sailed through, albeit India has touched the lowest Q1 performance in a decade, because of low performance in manufacturing, mining and quarrying.

On maintaining sustainability for the PSUs in the wake of global economic and domestic slowdown, KPMG India Chief Operating Officer Akhil Bansal, suggested that the Public sector should carry little more responsibility than the private sector, to survive during this turbulent time as it's more significant. He also added that collaboration between the PSUs and the private sector will accelerate the development process.

The S&P CNX Nifty is currently trading at 5,223.15, down by 2.55 points or 0.05% after trading in a range of 5,231.05 and 5,217.65. There were 22 stocks advancing against 28 declines on the index.

The top gainers of the Nifty were Wipro up by 3.48%, Infosys up by 2.98%, Ambuja Cements up by 2.80%, Jindal Steel up by 2.00% and JP Associates up by 1.57%. On the flip side, BHEL down by 3.13%, IDFC down by 2.90%, Power Grid down by 2.28%, ITC down by 2.15% and Bharti Airtel down by 1.88% were the major losers on the index.

Most of the Asian indices were trading in green; Nikkei 225 edged higher by 0.01%, Hang Seng index advanced 0.11%, Shanghai Composite added 0.39%, Kospi Composite Index jumped higher by 0.38% and Jakarta Composite rose 0.20% were the gainers On the flip side, Taiwan Weighted declined by 0.55%, Straits Times lowered by 0.30% and KLSE Composite plunged 1.43%.

European markets started off on sanguine note; France's CAC 40 added 0.52%, Germany's DAX rose 0.32% and UK's FTSE 100 advanced 0.25%. 

FLAT NOTE

Key domestic benchmarks have started off Thursday trade on a flat note as investors stayed away from making any big bets ahead of a meeting of European Central Bank today evening. On the global front, the US markets once again made a mixed closing overnight while, Asian counters too exhibiting mixed trend eying European development. Back home, UPA II's governance deficit continues to be a drag on the markets. The 'coal-gate' remains a major overhang. With the economy on a downward spiral, lack of meaningful progress on market-friendly reforms will further dent investors' sentiment. Moreover, stocks of two-wheeler sector like Bajaj Auto, Hero MotoCorp and TVS Motor edged lower as sales fell for the first time in 42 months in August due to a combination of surging petrol prices and high interest costs. On sectoral front, software witnessed the maximum gain in trade followed by metal and technology while, fast moving consumer goods, power and capital goods remained the top losers on the BSE sectoral space. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 872 shares on the gaining side against 522 shares on the losing side while 68 shares remained unchanged.  The BSE Sensex opened at 17,320.73; about 7 points higher compared to its previous closing of 17,313.34, and has touched a high and a low of 17,339.25 and 17,297.69 respectively.

The index is currently trading at 17,323.77, up by 10.43 points or 0.06%. There were 14 stocks advancing against 16 declines on the index.

The overall market breadth has made a strong start with 59.64% stocks advancing against 35.70% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.26% and 0.23% respectively.

The top gaining sectoral indices on the BSE were, IT up by 0.90%, Metal up by 0.75%, TECk up by 0.58%, Realty up by 0.47% and PSU up by 0.38%. While FMCG down by 0.52%, Power down by 0.51%, CG down by 0.27% and HC down by 0.23% remained the few losers on the index.

The top gainers on the Sensex were Jindal Steel up by 2.40%, Infosys up by 1.92%, Sterlite Industries up by 1.66%, Maruti Suzuki up by 1.15% and ICICI Bank up by 1.03%.

On the flip side, Bharti Airtel was down by 1.49%, BHEL was down by 1.44%, Sun Pharma was down by 1.03%, ITC was down by 0.90% and Hero MotoCorp was down by 0.84% were the top losers on the Sensex.

Meanwhile, though India's economic growth have slipped to 5.5% during April-June of 2012-13, advisory firm KPMG opined that India is performing better than many countries. It reaffirmed that in the current environment of global economic slowdown, the most important part is that the country is still growing.

It pointed out that world's largest economy, the US grew at 1.5% in 2011, versus 3.1% in 2010, while, Germany's GDP grew by 3%, though in 2010 it was 3.7%. It emphasized that the focus should be on how this turbulent journey is sailed through, albeit India has touched the lowest Q1 performance in a decade, because of low performance in manufacturing, mining and quarrying.

On maintaining sustainability for the PSUs in the wake of global economic and domestic slowdown, KPMG India Chief Operating Officer Akhil Bansal, suggested that the Public sector should carry little more responsibility than the private sector, to survive during this turbulent time as it's more significant. He also added that collaboration between the PSUs and the private sector will accelerate the development process.

The S&P CNX Nifty opened at 5,217.65; about 8 points lower compared to its previous closing of 5,225.70, and has touched a high of 5,231.00 while low remain its opening.

The index is currently trading at 5,229.05, higher by 3.35 points or 0.06%. There were 30 stocks advancing against 20 declines on the index.

The top gainers of the Nifty were Jindal Steel up by 2.58%, Infosys up by 1.95%, Sterlite Industries up by 1.66%, JP Associates up by 1.64% and Maruti Suzuki up by 1.22%.

On the flip side, Bharti Airtel down by 1.40%, BHEL down by 1.30%, IDFC down by 1.15%, Power Grid down by 1.02% and Sun Pharma down by 0.98%, were the major losers on the index.

Asian equity indices were trading mixed; Shanghai Composite was marginally up by 0.45 points or 0.02% to 2,037.85, Jakarta Composite was up by 22.66 points or 0.56% to 4,098.36, Nikkei 225 was up by 5.10 points or 0.06% to 8,684.92 and Kospi Composite was higher by 7.97 points or 0.42% to 1,881.99.

On the other hand, Hang Seng lost 57.04 points or 0.30% to 19,088.03, KLSE Composite was down by 20.69 points or 1.26% 1,620.32, Straits Times declined by 13.42 points or 0.45% to 2,982.48 and Taiwan Weighted lost 8.59 points or 0.12% to 7,358.85.

NEGATIVE TERRITORY

After opening into negative territory, Indian equity markets regained some lost ground and currently trading weak amid some selling pressure. Benchmarks fell in line with Asian peers as investors looked cautious ahead of a European Central Bank meeting tomorrow. Meanwhile, private sector lender Axis Bank tanked over 3% after the research firm Morgan Stanley downgraded the stock to underweight from equal weight. In currency markets, rupee depreciated against dollar on Wednesday due to strengthening of the American currency overseas. On sectoral front, stocks from metal, capital goods, power and banking sectors were still reeling under selling pressure. Healthcare, automobile and PSU stocks were also mostly trading lower. Information technology, oil and realty stocks are trading mixed. FMCG stocks were finding fairly good support. In global markets, Asian shares were also trading in red. Back home, the market breadth favoring negative trend; there were 1,216 shares on the gaining side against 1,138 shares on the losing side while 136 shares remained unchanged.

The BSE Sensex is currently trading at 17,379.07 down by 61.80 points or 0.35% after touching a high of 17411.67 and low of 17356.03. There were 6 stocks advancing against 23 declines on the index, while one remain unchanged.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.06% and Small cap index was up by 0.21%.

The only gainer on the BSE sectoral space was, FMCG up by 0.58%. While Metal down by 1.46%, CG down by 1.31% Power down by 0.92%, Bankex down by 0.78% and Auto down by 0.63% were the top losers on the sectoral space.

The top gainers on the Sensex were Bharti Airtel up by 2.46%, Hindustan Unilever up by 1.37%, HDFC Bank up by 0.78%, HDFC up by 0.72% and ITC up by 0.38%. On the flip side, Jindal Steel was down by 2.98%, BHEL was down by 2.70%, Tata Steel was down by 2.11%, Sterlite Industries was down by 1.82% and ICICI Bank down by 1.50%, were the top losers on the Sensex. 

Meanwhile, amid concerns about a ballooning fiscal deficit in the slowing economy, Finance Minister P Chidambaram affirmed that the government will clamp down tax evasion and would achieve 2012/13 tax collection target of Rs 5,70,257 crore.

A slump in growth and a rising fuel subsidy bill have raised worries that the government may miss the fiscal deficit goal of 5.1% of GDP. In four months India has consumed half the deficit budgeted for the full fiscal year and finance ministry is now seeking ways to raise revenue.

Chidambaram confirmed that the government is planning to bring non-tax compliant firms under the tax net with an aim to reduce burden on tax receipts. He also added that the government would wait for the recommendations from government panel before deciding whether to issue a controversial tax demand to Vodafone for its $11 billion purchase of Hutchison Whampoa's Indian assets.

The S&P CNX Nifty is currently trading at 5,248.70, down by 25.30 points or 0.48% after trading in a range of 5,259.50 and 5,243.85. There were 7 stocks advancing against 43 declines on the index.

The top gainers of the Nifty were Bharti Airtel up by 2.34%, HUL up by 1.48%, HDFC Bank up by 0.83%, HDFC up by 0.79% and BPCL up by 0.50%. On the flip side, AXIS Bank down by 3.37%, Jindal Steel down by 3.03%, BHEL down by 2.74%, Tata Steel down by 2.25% and Sesa Goa down by 2.03%, were the major losers on the index.

All the Asian indices were trading in red; Nikkei 225 down by 1.09%, Hang Seng index down by 1.44%, Shanghai Composite down by 0.15%, Kospi Composite Index down by 1.74%, Taiwan Weighted down by 1.13%, Jakarta Composite down by 0.55%, Straits Times down by 0.68% and KLSE Composite down by 0.68%. 

MARKETS CUT LOSSES

Indian equity markets have cut short substantial losses as some support emerged to the benchmarks at lower levels. Much of losses were limited by the stocks belonging from Fast Moving Consumer Goods, Oil & Gas and Realty counters, which were slugging amidst the lackadaisical trade, were holding their fort prominently in green. However, extending its declining for third consecutive session, 30 share barometer index of Bombay Stock Exchange (BSE), Sensex, shedding over 30 points, is currently holding above the 17350 level, similarly widely followed index of National Stock Exchange (NSE), Nifty, trading in proximity to its neutral line, is off its 5250 mark. Meanwhile, the broader indices too gaining some traction are holding their head above the water in green.

The mood at Dalal Street since the start of the trade remained downbeat mainly on account of P Chidambaram's Vijay Kelkar Panel submitted fiscal report, which underscored that in worst case scenario, without any action on subsidies, fiscal deficit could balloon up to 6.1 per cent of GDP in the current year. However, gloomy start of the European markets, too could add to the pressure of equity markets going further in the session.

European markets got off to pessimistic start after Moody's Investors Service downgraded European Union's rating outlook to "negative" and Andalusia joined Spain's 'bailout club' by seeking 1 billion euros in emergency lifeline from the government. Meanwhile, most of regional counterparts have mostly dived deeper in negative terrain.

Closer home, the BSE Sensex is currently trading at 17,353.64, down by 30.76 points or 0.18% after touching a high of 17378.68 and low of 17,315.76. 10 stocks were advancing against 20 declines on the index.

The broader indices were trading in green; the BSE Mid cap and Small cap indices were trading higher by 0.01% and 0.03% respectively.

The top gainers on the BSE sectoral space were, FMCG up by 0.50%, Oil & Gas up by 0.46%, Realty up by 0.39%, CD up by 0.25% and Power up by 0.15%. While IT down by 0.52%, TECk down by 0.30%, PSU down by 0.22%, Bankex down by 0.15% and Metal down by 0.11% were the top losers on the index.

The top gainers on the Sensex were Tata Steel up by 1.42%, Reliance up by 1.14%, Tata Motors up by 0.82%, HUL up by 0.67% and SBI up by 0.53%. On the flip side, HDFC down by 1.45%, Cipla down by 1.30%, ONGC down by 1.26%, Tata Power down by 1.18% and NTPC down by 1.00% were the top losers on the Sensex.

Meanwhile, Agriculture Minister, Sharad Pawar has stirred the proposal for consideration of cutting interest rate on crop loans before the Empowered Group of Ministers (EGoM) on drought. It is one of the major proposals to give financial assistance on crop loan, especially those rescheduled as term loan due to drought in some states.

The drought hit areas where farmers have taken crop loans are rescheduled into term loans due to their inability to pay. They may be charged lower interest rate at 7 % from 12 % to reduce their burden. During crisis like drought, the recovery is done by rescheduling the crop loan converted into a term loan and farmers get 3 years time to repay.

The monsoon is deficient in the country by 12%. The poor monsoon especially in 4 states: Karnataka, Gujarat, Maharashtra and Rajasthan have confirmed drought in more than 390 taluks.

 The S&P CNX Nifty is currently trading at 5245.60, down by 8.15 points or 0.16% after trading in a range of 5,252.75 and 5,234.80. There were 19 stocks advancing against 30 declines on the index, while 1 stock remained unchanged.

The top gainers of the Nifty were Power Grid up by 2.34%, Tata Steel up by 1.56% Reliance up by 1.38%, Reliance Infra up by 1.10% and DLF up by 0.93%. On the flip side, IDFC down by 2.27%, HDFC down by 1.69%, Cipla down by 1.25%, Ambuja Cement down by 1.24% and Tata Power down by 1.23% were the major losers on the index.

Most of the Asian indices were mostly trading in red; Nikkei 225 declined 0.10%, Hang Seng index slid 0.21%, Shanghai Composite descended 0.88%, Kospi Composite Index shed 0.29%, KLSE Composite lost 0.02% and Jakarta Composite surrendered 0.20%, while Taiwan Weighted inched up by 0.01% and Straits Times inched up by 0.03% were the gainers.

European markets got off to negative start; France's CAC 40 declined 0.22%, Germany's DAX lost 0.37% and UK's FTSE 100 slid 0.50%. 

LACKLUSTER

Indian equities continued lackadaisical trade below neutral line in the late morning session. On the global front, the majority of Asian markets were trading in red at this point of time on cautiousness in the global equity markets after the European Union's outlook was cut by Moody's Investors Service ahead of meetings of the region's policy makers. The traders were seen piling up position in Realty, Oil & Gas and FMCG sector, while selling was witnessed in IT, TECk and PSU sector. On the other hand, DLF, Oberoi Realty, Sobha Developers, and Godrej Properties from Realty pack were seen trading in green edging the markets higher.  RIL, Cairn India, Bharat Petroleum Corporation and Indian Oil Corporation from Oil & Gas pack were seen trading firm in green, holding the markets from dipping further. Infosys, TCS, Wipro, HCL Tech and Oracle Financial Services Software from IT sector were trading in red exerting pressure on the market, while PSU majors ONGC, NTPC and Coal India too were pressurizing the markets. 

In the scrip specific development, Ashok Leyland gained on reporting 30.4% jump in sales in August 2012 at 9,432 units compared to 7,232 units in the same month of last year. PGCIL rose on receiving approval for investment proposal worth Rs 1935.35 crore. Tata Motors edged higher on unveiling Xenon to strengthen its pick-up segment. The NSE Nifty and BSE Sensex were managing to hold their psychological 5200 and 17300 levels respectively. The market breadth on BSE was positive, in the ratio of 1066: 843.

The BSE Sensex is currently trading at 17359.52 down by 24.88 points or 0.14% after touching a high of 17378.68 and low of 17322.20. There were 10 stocks advancing against 20 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.14% and Small cap index was up by 0.26%.

On the BSE sectoral space, Realty up by 0.68%, Oil & Gas up by 0.57%, FMCG up by 0.48%, CG up by 0.25% and CD up by 0.20% were the gainers. While IT down by 0.73%, TECk down by 0.58% PSU down by 0.14%, Power down by 0.10% and Metal down by 0.02% were the top losers on the index.

The top gainers on the Sensex were Tata Steel up by 1.24%, RIL up by 1.09%, Sterlite Industries up by 0.89%, Dr Reddys Lab up by 0.83% and Tata Motors up by 0.78%. On the flip side, HDFC was down by 1.38%, Bharti Airtel  was down by 1.30%, NTPC was down by 1.27%, Coal India  was down by 0.94% and Tata Power  was down by 0.87%, were the top losers on the Sensex.

Meanwhile, the Agriculture Minister, Sharad Pawar has stirred the proposal for consideration of cutting interest rate on crop loans before the Empowered Group of Ministers (EGoM) on drought. It is one of the major proposals to give financial assistance on crop loan, especially those rescheduled as term loan due to drought in some states.

The drought hit areas where farmers have taken crop loans are rescheduled into term loans due to their inability to pay. They may be charged lower interest rate at 7 % from 12 % to reduce their burden. During crisis like drought, the recovery is done by rescheduling the crop loan converted into a term loan and farmers get 3 years time to repay.

The monsoon is deficient in the country by 12%. The poor monsoon especially in 4 states: Karnataka, Gujarat, Maharashtra and Rajasthan have confirmed drought in more than 390 taluks.

 The S&P CNX Nifty is currently trading at 5,246.10, down by 7.65 points or 0.15% after trading in a range of 5,252.75 and 5,235.95. There were 20 stocks advancing against 30 declines on the index.

The top gainers of the Nifty were Power Grid up by 1.65%, Ranbaxy up by 1.36%, DLF up by 1.34%, PNB up by 1.27% and Reliance up by 1.23%. On the flip side, IDFC down by 1.93%, HDFC down by 1.52%, Bharti Airtel down by 1.40%, Ambuja Cement down by 1.21% and Coal India down by 1.14%, were the major losers on the index.

Most of the Asian indices were trading  in red; Nikkei 225 down by 0.16%, Hang Seng index down by 0.28%, Shanghai Composite down by 0.38%, Kospi Composite Index down by 0.30%, Taiwan Weighted down by 0.06%, while Jakarta Composite up by 0.08%,Straits Times up by 0.04% and KLSE Composite up by 0.01% were the gainers.

SOFT START

Indian equity benchmarks have made a soft start following negative Asian cues, as most of the regional peers were trading in the red at this point of time on cautiousness in the global equity markets after the European Union's outlook was cut by Moody's Investors Service ahead of meetings of the region's policy makers. Meanwhile, the US markets remained closed on Monday unable to give any cue to the other global markets. Back home, investors continue to trade cautiously amid lack of progress on policy reforms front. The ongoing spat between the Government and the BJP over the controversial coal block allocations continues to dampen the sentiment. Markets are also reeling under fears of a possible downgrade of India's sovereign debt rating if the expected reforms do not come through in the next few days. On the sectoral front oil and gas witnessed the maximum gain in trade followed by realty and fast moving consumer goods while, software, technology and metal remained the top losers. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 698 shares on the gaining side against 574 shares on the losing side while 79 shares remained unchanged.

The BSE Sensex opened at 17,378.68; about 6 points lower compared to its previous closing of 17,384.40, and has touched a low of 17,322.20 while high remain its opening. The index is currently trading at 17,341.16, down by 43.24 points or 0.25%. There were 8 stocks advancing against 22 declines on the index.

The overall market breadth has made a positive start with 51.67% stocks advancing against 42.49% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.15% and 0.13% respectively.

The top gaining sectoral indices on the BSE were, Oil and Gas up by 0.48%, Realty up by 0.44%, FMCG up by 0.32%, CD up by 0.20% and HC was up by 0.09%. While, IT down by 0.67%, TECk down by 0.58%, Metal down by 0.43%, Power down by 0.41% and Bankex down by 0.27% were the top losers on the index.

The top gainers on the Sensex were RIL up by 0.90%, Tata Motors up by 0.54%, SBI up by 0.33%, ITC up by 0.24% and Hero MotoCorp was up by 0.15%.

On the flip side, NTPC was down by 2.04%, Bajaj Auto was down by 1.02%, Bharti Airtel was down by 0.99%, Tata Power was down by 0.92% and TCS was down by 0.78% were the top losers on the Sensex.

Meanwhile, with ailing performance amid slowing economy, Indian domestic air traffic have posted a decline of 1.1% in July with respect to same month of previous year. International Air Transport Association (IATA) pointed out that the July capacity rose 2.1%, dropping the load factor to 69.6% from 71.8% last year.

The cargo business posted a dip of 3.2% compared to that of previous year and the passenger market demand also pummeled from the month of June to July this year. Though the overall passenger demand is still up 3.4%,  the rising fuel prices is likely to put more pressure on airline growth in the second half of the year.

The airline association noted that the comparison with a relatively strong July last year points a larger decline, albeit the overall trend in air freight is weak, in conjunction with subdued world trade growth. It also added that the global traffic results for July dripped both in air travel and freight, but with considerable variation by region and market.

China's domestic market rebounded sharply from the slowdown earlier this year to post 9% demand growth in July, up from the 7.8% year-over-year growth seen in June. With capacity up 12.1%, load factor slipped to 84.1% from 86.5% last year.

The S&P CNX Nifty opened at 5,249.15; about 4 points lower compared to its previous closing of 5,253.75, and has touched a high and a low of 5,252.30 and 5,235.95 respectively. The index is currently trading at 5,241.55, up by 12.20 points or 0.23%. There were 16 stocks advancing against 34 declines on the index.

The top gainers of the Nifty were RIL up by 1.05%, BPCL up by 0.95%, DLF up by 0.95%, Ranbaxy up by 0.86% and Power Grid up by 0.66%.

On the flip side, NTPC down by 1.75%, IDFC down by 1.52%, Bharti Airtel down by 1.24%, JP Associates down by 1.01% and Ambuja Cement down by 1.99%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Hang Seng was down by 18.53 points or 0.09% to 19,540.68, Jakarta Composite was lower by 8.20 points or 0.20% to 4,109.75, KLSE Composite was marginally down by 0.70 points or 0.04% 1,653.20, Nikkei 225 lost 7.65 points or 0.09% to 8,776.24, Kospi Composite declined by 0.73 points or 0.04% to 1,911.98 and Taiwan Weighted was down by 0.46 points or 0.01% to 7,450.07.

On the other hand, Shanghai Composite was up by 1.30 points or 0.06% to 2,060.44 and Straits Times was up by 5.78 points or 0.19% to 3,023.00.

MARKETS PARE GAINS

Indian equities have pared gains but continued to trade in green in the late morning session. On the global front, all the Asian counters were trading in the green after a contraction in China's manufacturing boosted expectations of more stimulus for the world's second-biggest economy. The traders were seen piling up position in Auto, CD and Power sector, while selling was witnessed in Oil & Gas, and FMCG sector. On the other hand, Tata Motors, Mahindra & Mahindra, Bajaj Auto and Maruti Suzuki from Auto pack were seen trading in green edging the markets higher.  NTPC, Power Grid Corp, and BHEL from Power pack were seen trading firm in green, holding the markets from dipping further.  RIL, ONGC, BPCL, Indian Oil Corp and HPCL from Oil & Gas sector were trading in red exerting pressure on the market, while Metal majors Tata Steel, Coal India and Jindal Steel too were pressurizing the markets.

In the scrip specific development, Mahindra & Mahindra gained on reporting 21.74% jump in sales at 45,836 units for August against 37,684 units in the same month last year. The company's domestic sales were up 19.77% 42,826 units during the month against 35,756 units in August 2011. GAIL India rose on inking LNG supply agreement with Spain based GNF. Tata Motors soared on reporting growth in its total sales at 71,826 vehicles for the month of August 2012, including exports of Tata commercial and passenger vehicles. Besides, the company's domestic sales rose by 13% at 67,453 vehicles as against 59,874 vehicles sold in August last year. SBI edged higher on inking MoU with JBIC to assist Japanese SMEs.

The NSE Nifty and BSE Sensex were managing to hold their psychological 5250 and 17400 levels respectively. The market breadth on BSE was positive, in the ratio of 1223:804.

The BSE Sensex is currently trading at 17460.21 up by 30.65 points or 0.18% after touching a high of 17509.99 and low of 17445.78. There were 20 stocks advancing against 10 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.64% and Small cap index was up by 0.58%.

On the BSE sectoral space, Auto up by 0.69%, CD up by 0.69% Power up by 0.66%, Metal up by 0.58% and IT up by 0.51% were the gainers. While, Oil & Gas down by 052% and FMCG down by 0.20% were the only top losers on the index.

The top gainers on the Sensex were Bajaj Auto up by 1.85%, Cipla up by 1.82%, Sterlite Industries up by 1.61%, NTPC up by 1.52% and Maruti Suzuki up by 1.27%. On the flip side, Jindal Steel was down by 1.55%, Wipro  was down by 1.14%, RIL was down by 0.97%, Hero MotoCorp  was down by 0.89% and Hindustan Unilever  was down by 0.80%, were the top losers on the Sensex.

 Mean while, in a development aimed at reviving the inflow of foreign capital, the expert committee on General Anti Avoidance Rules (GAAR), headed by Parthasarathi Shome, has recommended postponement of the contentious anti-avoidance tax provisions by three years till 2016-17. The draft report, which has been submitted to the finance ministry, has also sought comments from the stakeholders by September 15.

In the wake of outrage by foreign investors, the Prime Minister Manmohan Singh appointed a four-member committee headed by noted economist and tax expert Parthasarathi Shome to rework on GAAR, a measure to check tax evasion, proposed in the Union Budget 2012-13, which was later deferred till April next year. However, the shome committee, among other things, also recommended a breather for Mauritius-based entities and an abolition of capital gains tax for listed securities. Committee in its draft report suggested that GAAR provisions should not be invoked to examine the genuineness of the foreign investor entities' residency in Mauritius, which is the most preferred route for foreign investments because of the liberal taxation regime in the island country.

Meanwhile, in a move to cheer the stock markets, the government tax panel has also advocated Abolishment of capital gains arising from transfer of listed securities whether in the nature of capital gains or business income to both residents as well as non-residents. However, in order to neutralize the impact of the proposal, the panel suggested that government to consider increasing the rate of Securities Transaction Tax (STT) appropriately.

Furthermore, the panel besides recommending monetary threshold of Rs 3 crore of tax benefit or more for application of GAAR provisions, has expanded the scope of the general anti-avoidance rules, by recommending inclusion of all Non-resident Indian (NRI) taxpayers into the ambit of the rules.

The S&P CNX Nifty is currently trading at 5,279.20, up by 20.70 points or 0.39% after trading in a range of 5,295.80 and 5,275.75. There were 35 stocks advancing against 15 declines on the index.

The top gainers of the Nifty were Sesa Goa up by 2.42%, Cipla up by 2.34%, Ranbaxy up by 2.13%, Bajaj-Auto up by 1.88% and NTPC up by 1.58%. On the flip side, Ambuja Cement down by 1.86%, Jindal Steel down by 1.79%, BPCL down by 1.10%, ACC down by 0.99% and Tata Power down by 0.40%, were the major losers on the index.

All the Asian indices were trading in green; Nikkei 225 up by 0.50%, Hang Seng index up by 0.57%, Shanghai Composite up by 0.79%, Jakarta Composite up by 0.61%, Kospi Composite Index up by 0.65%, Taiwan Weighted up by 0.78%, Straits Times up by 0.01% and KLSE Composite up by 0.52% were the gainers.