MARKETS HOLD ON THE GAINS

Indian stock markets continue to remain in fine fettle in late hours of Tuesday as sentiments remained sanguine on the back of encouraging move by Reserve bank of India which apart from keeping key policy rate unchanged for second straight time went on to cut the cash reserve ratio to 5.5% from 6% which underscores a cut of 50 basis points. The frontline indices traded with hefty gains of over one and half a percent and managed to hold on to the psychological 17,000 (Sensex) and 5,100 (Nifty) levels. Stocks from the rate sensitive banking counter kept gaining traction as the reduction in the CRR would result in infusion of around Rs 32,000 crore of primary liquidity into the banking system. Hefty buying was also evident in Capital Goods and high beta Realty index which traded with strong gains. While there appeared no sectoral laggard on the BSE, however some individual stocks like Coal India and Maruti Suzuki plunged over a percent. On the global front, the markets that were open in Asia settled on a positive note. However, the European markets traded on a negative note as there was no headway in negotiations between European ministers and Greek bondholders over how to resolve the nation's debt crisis. Back home, the broader markets traded on an optimistic note but failed to match the fervor with which their larger peers traded with.  The market breadth on BSE was in favor of advances in the ratio of 1529:1160 while 124 scrips remained unchanged.

The BSE Sensex is currently trading at 17,006.58 up by 254.88 points or 1.52% after trading as high as 17,050.32 and as low as 16,770.01. There were 26 stocks advancing against 4 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index surged 1.27% and Small cap climbed 0.65%.

On the BSE sectoral space, Bankex up 3.47%, Capital Goods up 2.94%, Metal up 1.73%, Realty up 1.61% and PSU up 1.30% were the major gainers while there were no losers in the space.

SBI up by 5.29%, L&T up by 4.80%, Hindalco Industries up by 3.93%, ICICI Bank up by 3.65%, Mahindra & Mahindra up by 2.95% were the major gainers on the Sensex, while Maruti Suzuki down 1.58%, Sun Pharma down by 0.97%, HUL down by 0.56% and Gail India down by 0.50% were the only losers in the index.

Meanwhile, the Heavy Industries Ministry has come in support of the domestic power equipment producers and has advocated a 14 per cent import duty on power generation equipment for the projects above 1,000 MW. The Heavy Industries Minister, Praful Patel, said, "Such a duty will provide a level playing field to domestic companies such as BHEL and L&T, which have significant disadvantage." The move is primarily aimed at imports from China.

At present, equipment for power projects with capacity over 1,000 MW attract marginal duty, making the import cheaper. To protect their interests and provide them level playing field, domestic players led by Bhel and L&T have been demanding imposition of 14 percent duty on import of electrical equipment as a cushion against local taxes.

If the import duty is imposed, it will provide level playing field to Indian power equipment manufacturers to take on increasing penetration of international suppliers here. "Companies such as Bhel and L&T are at a specific disadvantage. Imports should not be disallowed but there is a case for (the Indian) power industry to have a level-playing field," Patel said. It was reported that the Power Ministry had already circulated a Cabinet note in this regard. Power generation equipment makers having a manufacturing base in India stand to benefit from such a move.

Further, the Heavy Industries Ministry is pushing hard to ensure that the award of equipment contracts by developers of large power projects is done mandatorily through a bidding process, rather than the current practice of developers placing orders directly on the vendors of their choice. The bids for equipment supply for power projects are being rejigged, which will allow domestic gear makers to participate in the procedure. The ministry has also called for procurement model for equipment for ultra mega power projects (UMPP) of 4,000 MW capacity to involve international competitive bidding (ICB).

The S&P CNX Nifty is currently trading at 5,129.65, higher by 83.40 points or 1.65% after trading as high as 5,141.05 and as low as 5,049.80. There were 40 stocks advancing against 9 declines while one stock remained unchanged on the index.

The top gainers on the Nifty were JP Associates up by 5.49%, SBI up by 5.35%, Larsen & Turbo up by 5.02%, IDFC up by 4.82%, PNB up by 4.67%. On the other hand, Maruti Suzuki down by 1.40%, Sun Pharma down by 0.95%, HUL down by 0.67%, Grasim down by 0.48%, GAIL down by 0.305.

In the Asian space, only Nikkei 225 gained 0.22% to 8,785.33 and Jakarta Composite advanced 0.14% to 3,992.28 while all other stock markets including that in China, Hong Kong, Malaysia, South Korea, Singapore and Taiwan remained closed in observance of Lunar New Year holiday. 

CRR CUT CHEERS THE MARKETS

Indian benchmarks shoot up and are currently trading near the high points of the day with strong gains, as the Reserve Bank of India slashed cash reserve ratio by 50 basis points to 5.5% for the first time since 2009. The Sensex and the Nifty have crossed 16,900 mark and 5,100 levels, respectively. This stunt by the central bank will infuse Rs 32,000 crore into the financial system, which will help the banks to lend more but interest rate change may not happen as policy rates remained unchanged. Meanwhile central bank, which has left repo rate unchanged at 8.5%, has retained inflation projection for March 2012 at 7% and expects inflation to moderate in financial year 2013 only. However, rate sensitive's gained strength post this policy announcement as shares of country's largest lenders ICICI Bank and SBI gained 2.3-2.7% while HDFC Bank rose 0.7% and HDFC was up 1.3%. On sectoral front all the sectors were trading in green post the RBI's credit policy, with banking sector leading the rally.  On the global front Asian markets were trading in green. Back home, the market breadth was favoring the positive trend; there were 1337 shares on the gaining side against 928 shares on the losing side while 104 shares remained unchanged.

The BSE Sensex is currently trading at 16,968.94, up by 217.21 points or 1.30%. The index has touched a high and a low of 16,976.62 and 16,770.01 respectively. There were 26 stocks advancing against just 4 declines on the index.

The broader indices also following the benchmark; the BSE Mid cap and Small cap index gained by 0.83% and 0.47% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 2.50%, CG up by 2.41%, Metal up by 1.23%, CD up by 1.16% and Oil and Gas up by 1.12%. While, there was no loser on the index.

The top gainers on the Sensex were L&T up by 3.92%, ICICI Bank up by 3.00%, SBI up by 2.87%, Hindalco up by 2.29% and Mahindra & Mahindra up by 1.93%.

On the flip side, Maruti Suzuki down by 1.85%, Bajaj Auto down by 0.39%, GAIL India down by 0.26% and DLF down by 0.16% were the top losers on the Sensex.

Meanwhile, Prime Minister, Manmohan Singh has expressed his concern over the state of skill development in the country. He said that there was an urgent need to provide skill training to India's growing youth population and asked ministers to step up their efforts and set ministry-wise targets for skill development in the run-up to the Union Budget in mid-March and propose ambitious skilling initiatives in the 12th Plan (2012-17). He asked the ministers to especially consider the skilling needs of people belonging to SC, ST, backward classes, minorities, women and those with disabilities and focus on sectors like infrastructure, real estate, auto and auto components, textile, healthcare, retail and logistics.

The Prime Minister was of the view that any social and economic policy of inclusive development could not ignore the fact that a significant proportion of India's citizens were forced to take up unskilled work because they lacked the education and skills required for taking up economically and professionally rewarding employment. In his opinion the country could reap a demographic dividend only if the youth was educated and possessed skills required for earning a decent livelihood.

Skill requirement studies estimate that India will require around 26 crore skilled people by 2018 and around 34 crore by 2022 which means that there would be a need to provide quality training to around eight crore people in the next five years. This requires a focused and target oriented approach from the Central and State governments backed by matching outlays. The PM is all for it and has said that any such proposal will be looked at 'favourably' by the government and announcements could be made in the budget for next fiscal, to be unveiled in March.

Dilip Chenoy, Managing Director of National Council on Skill Development  (NSDC) opined that, "if there is a service tax exemption (for NSDC and other training providers) it will help bring down fees for skill training programmes and thereby incentivise more students to enroll for such programmes". If the proposals go through, students enrolling in courses like software, retail and fashion can expect to pay a lower course fees.

The S&P CNX Nifty is currently trading at 5,121.10, higher by 74.85 points or 1.48%. The index has touched a high and a low of 5,121.20 and 5,049.80 respectively.  There were 42 stocks advancing against 7 declining ones and one remained unchanged on the index.

The top gainers of the Nifty were L&T up by 4.57%, SBI up by 3.94%, IDFC up by 3.90%, PNB up by 3.84% and Hindalco up by 3.60%.

Maruti Suzuki down by 1.41%, Powergrid down by 0.50%, GAIL down by 0.26%, DLF down by 0.23% and Bajaj Auto down by 0.13% were the major losers on the index.

In Asia, majority of bourses remained closed for Lunar New Year holiday, while the benchmarks in Indonesia and Japan are trading on a positive note; Jakarta Composite was up 0.34% and Nikkei 225 gained 0.18%. 

POSITIVE OPENING

The Indian equity markets have made a decent opening following firm cues from some of the Asian counterparts. Though, leads from the overnight US markets remained lackluster, but cues from the European region were supporting sentiments. The positive Euro-zone consumer confidence data which showed household sentiment rose in January along with reports that the region's finance ministers have nearly finalized a treaty on a stability mechanism, encouraged investors as they hoped that progress was being made to tame the region's debt crisis. Back home, the traders are eagerly awaiting the credit policy to be declared today. While opinions are mixed, some feel that the RBI may cut cash reserve ratio (CRR), many still feel that for now the central bank will maintain a status quo with a dovish outlook. Capital goods, consumer durables and banks (major ones) were on buyers' radar while auto, realty and select metal stocks were under pressure. The broader indices too were witnessing some traction. The market breadth on the BSE was positive; there were 912 shares on the gaining side against 560 shares on the losing side while 56 shares remained unchanged.

The BSE Sensex opened at 16,806.72; about 55 points higher compared to its previous closing of 16,751.73, and has touched a high and a low of 16,834.82 and 16,786.77 respectively.

The index is currently trading at 16,796.71, up by 44.98 points or 0.27%. There were 17 stocks advancing against 13 declines on the index.

The overall market breadth has made a strong start with 59.69% stocks advancing against 36.65% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.24% and 0.55% respectively.

The top gaining sectoral indices on the BSE were, CD up by 1.07%, CG up by 0.92%, Oil and Gas up by 0.68%, FMCG up by 0.34% and HC was up by 0.34%. While, Realty down by 0.59%, Auto down by 0.29% and Metal down by 0.29% were the only losers on the index.

The top gainers on the Sensex were L&T up by 1.20%, Bharti Airtel up by 1.02%, Cipla up by 0.98%, RIL up by 0.91% and HUL was up by 0.90%.

On the flip side, Maruti Suzuki was down by 1.84%, Sterlite Industries was down by 1.62%, DLF was down by 1.39%, NTPC was down by 0.80% and Hero MotoCorp down by 0.75% were the top losers on the Sensex.

Meanwhile, Prime Minister, Manmohan Singh has expressed his concern over the state of skill development in the country. He said that there was an urgent need to provide skill training to India's growing youth population and asked ministers to step up their efforts and set ministry-wise targets for skill development in the run-up to the Union Budget in mid-March and propose ambitious skilling initiatives in the 12th Plan (2012-17). He asked the ministers to especially consider the skilling needs of people belonging to SC, ST, backward classes, minorities, women and those with disabilities and focus on sectors like infrastructure, real estate, auto and auto components, textile, healthcare, retail and logistics.

The Prime Minister was of the view that any social and economic policy of inclusive development could not ignore the fact that a significant proportion of India's citizens were forced to take up unskilled work because they lacked the education and skills required for taking up economically and professionally rewarding employment. In his opinion the country could reap a demographic dividend only if the youth was educated and possessed skills required for earning a decent livelihood.

Skill requirement studies estimate that India will require around 26 crore skilled people by 2018 and around 34 crore by 2022 which means that there would be a need to provide quality training to around eight crore people in the next five years. This requires a focused and target oriented approach from the Central and State governments backed by matching outlays. The PM is all for it and has said that any such proposal will be looked at 'favourably' by the government and announcements could be made in the budget for next fiscal, to be unveiled in March.

Dilip Chenoy, Managing Director of National Council on Skill Development  (NSDC) opined that, "if there is a service tax exemption (for NSDC and other training providers) it will help bring down fees for skill training programmes and thereby incentivise more students to enroll for such programmes". If the proposals go through, students enrolling in courses like software, retail and fashion can expect to pay a lower course fees.

The S&P CNX Nifty opened at 5,064.80; about 18 points higher compared to its previous closing of 5,046.25, and has touched a high and a low of 5,072.00 and 5,057.85 respectively.

The index is currently trading at 5,059.85, higher by 13.60 points or 0.27%. There were 31 stocks advancing against 19 declines on the index.

The top gainers of the Nifty were BPCL up by 2.03%, L&T up by 1.28%, Bharti Airtel up by 1.02%, Ambuja Cement up by 1.01% and Reliance Infra up by 0.92%.

Sterlite Industries down by 2.22%, Maruti Suzuki down by 1.57%, Ranbaxy down by 1.46%, DLF by 1.16% and Hero MotoCorp was down by 1.07%, were the major losers on the index.

In Asia, majority of bourses remained closed for Lunar New Year holiday, while the benchmarks in Indonesia and Japan are trading on a positive note; Jakarta Composite was up 15.79 points or 0.40% to 4,002.30 and Nikkei 225 was up by 23.54 points or 0.27% to 8,789.44. 

CAUTION KEEPS THE MARKETS UNCHANGED

After showcasing a close to four percent rally in the week gone by, Indian benchmark equity indices consolidated their position around the previous closing levels on the first trading session of the holiday shortened F&O expiry week. The psychological 5,050 (Nifty) and 16,800 (Sensex) levels proved as stern resistances as the key gauges failed to surmount those levels by the end. The key gauges displayed listless performance through the day as the aimless benchmarks appeared exhausted and showed only sideways kind of movement in a tight band, lacking any significant upside triggers. The session was solely dedicated to sideways as investors awaited the announcement of all important RBI monetary policy action which is scheduled on January 24. While consensus estimates are that the Indian central bank will keep both repo and reverse repo rates unchanged at 8.5% and 7.5% respectively however, there are some expectations that the RBI will commit to open market operations (OMO). The main trade-off for policy action is between inflation and economic growth, and with recent economic indicators signaling growth picture is not as bad as feared, inflation will continue to be RBI's focus. The plunge of about three percent in index heavyweight Reliance Industries on the back of its disappointing third quarter earnings announcement prevented the upside chances for the frontline gauges in the session while other bellwethers like L&T, Maruti Suzuki, Sterlite too announced their third quarter earnings on Monday. While stocks like L&T and Maruti got commended for the performance by investors, however, Sterlite reported its third quarter earnings which were not in line with street's expectations and got punished for its unimpressive performance. In the global space, on a day when all major Asian equity markets enjoyed an extended weekend, the Japanese benchmark remained the only index which traded and settled with modest loss. The European markets exhibited unenthusiastic cues as marketmen looked forward for the European Union meet scheduled later in the global day where the region's leaders may decide upon measures to tackle a debt crisis.

Earlier on Dalal Street, the benchmark got off to a soft start in the morning trade tracking the lackluster moves in Japanese markets on a day when most Asian markets were off on extended weekend. The indices kept see-sawing around the neutral line as they moved only sideways through the day's trade. After touching intraday lows in early noon trades the gauges recovered to intraday highs in mid noon trades but only to eventually settle in close proximity with previous closing levels. The NSE's 50-share broadly followed index Nifty, shed two points to settle just shy of the crucial 5,050 support level while Bombay Stock Exchange's Sensitive Index or Sensex added twelve points and ended above the psychological 16,750 mark. Moreover, the broader markets too remained range bound and finally closed with marginal gains, performing in tandem with their larger peers. On the BSE sectoral space, defensive-FMCG counter remained the top gainer in the space with gains of about a percent while the high beta Realty sector along with TECk pocket too gained a lot of traction and settled with similar gains. On the flipside, the Metal counter remained the top laggard with over two percent cuts after heavyweight Sterlite plunged over five percent post announcing disappointing results. The markets consolidated on weaker volumes of over Rs 1.27 lakh core while the turnover for NSE F&O segment also remained on the lower side as compared to that on Friday at over Rs 1.11 lakh crore. The market breadth remained positive as there were 2451 shares on the gaining side against 1334 shares on the losing side while 129 shares remained unchanged.

Finally, the BSE Sensex rose 12.72 points or 0.08% to settle at 16,751.73, while the S&P CNX Nifty lost 2.35 points or 0.05% to close at 5,046.25.

The BSE Sensex touched a high and a low of 16,784.00 and 16,659.32 respectively. The BSE Mid cap and Small cap indices were up by 0.06% and 0.27% respectively.

The major gainers on the Sensex were Maruti Suzuki up 5.77%, Bharti Airtel up 3.03%, BHEL up 2.69%, DLF up 2.50% and ICICI Bank up 1.80%. While, Sterlite Inds down 5.36%, Hindalco Inds down 4.29%, Hero MotoCorp down 4.11%, RIL down 2.82% and Coal India down 2.73%, were the major losers on the index.

On the BSE sectoral space, FMCG up 0.83%, Realty up 0.82%, TECk up 0.81%, Capital Goods (CG) up 0.77% and Power up 0.73% were the top gainers, while Metal down 2.06%, Oil & Gas down 1.66%, Consumer Durables (CD) down 0.53%, PSU down 0.15% and Health Care (HC) down 0.10% were top losers.

Meanwhile, gems & Jewellery exports have declined by huge 15% in the month of December as compared to the same period last year. According to the Gems and Jewellery Export Promotion Council (GJEPC) India exported jewellery worth $3 billion in the month of December against $3.5 billion in December 2011.

The exports decline was mainly due to a slowdown in demand in the US and EU markets. According to the GJEPC Chairman Rajiv Jain, "There has been a demand slowdown for our products mostly from the western markets like the US and EU'.

Exports of cut and polished diamonds in December declined by 40% year-on-year in dollar terms. In volume terms, exports fell by 31%, to 36.38 lakh carats. Exports of cut and polished diamonds from India during the nine-month period of April-December 2011 lower by 5% in dollar terms. However, gold jewellery exports saw robust growth during December by 41% to $778.37 million. While, during the same period, silver jewellery exports too moved up, partly due to the low base effect. During the April-December period, gems and jewellery exports have grown 11.65% to $32.1 billion, compared to the same period last fiscal.

Exporters are now exploring new markets like Latin America, Africa and Russia to reduce dependence on traditional markets. Other major markets for the country's gems and jewellery exports include the UAE and Hong Kong. India mainly imports gold and rough diamonds in large quantities and re-exports value-added items like jewellery.

The S&P CNX Nifty touched a high and low of 5,059.55 and 5,021.35, respectively.

The top gainers on the Nifty were Maruti Suzuki up 5.75%, BHEL up 2.94%, DLF up 2.92%, Bharti Airtel up 2.82% and ITC up 1.81%.

On the flip side, Sterlite Industries down 6.01%, Hindalco Industries down 4.91%, Hero MotoCorp down 4.18%, Kotak Bank down 3.98% and Coal India down 3.19% were the top losers on the index.

The European markets were trading mixed. France's CAC 40 up 0.34%, Britain's FTSE 100 gained 0.53% and Germany's DAX down by 0.06%.

In Asia, only a handful of markets remained open for trade on Monday. Japanese markets ended flat on Monday to halt a four-day winning streak, with early gains capped by market worries over Greece after negotiations with private creditors failed, raising the stakes for a meeting later in the day at which euro zone finance ministers will decide terms for a debt restructuring. Earlier, Nikkei opened up for the fifth day in a row as US home sales rose to the highest level in almost a year.

Olympus Corp, battling to emerge from a $1.7 billion accounting scandal, zoomed over 8% after the Tokyo Stock Exchange kept it listed, meaning it will be easier to raise capital, though with a special designation for firms needing to urgently improve internal management.

Nikkei 225 was down marginally by 0.46 points or 0.01% to 8,765.90.

Stock markets in China, Hong Kong, Indonesia, Malaysia, South Korea, Singapore and Taiwan remained closed on Monday in observance of a public holiday. 

NEUTRAL LINE

Indian equity markets continued range bound movement, lacking any significant upside triggers in Monday afternoon trades. The frontline indices lost some momentum and slipped to the session's lows in early afternoon trades but hefty buying in FMCG bellwether HUL and TECk major Bharti Airtel has brought the benchmarks back in close proximity with the previous closing levels. However, the plunge of over three percent in index heavyweight Reliance Industries on the back of its disappointing third quarter earnings announcement has capped the upside chances for the frontline gauges. The psychological 5,050 (Nifty) and 16,750 (Sensex) levels are proving as stern resistances which the key gauges are finding difficult to break. Investors are only indulging in stock specific activity amid a slew of earnings announcement after seeing the market's close to four percent rally in the week gone by. Market participants remain at the sidelines as they await the outcome of important RBI credit policy review meet which is scheduled to be held on January 24. While consensus estimates are that the Indian central bank will keep both repo and reverse repo rates unchanged at 8.5% and 7.5% respectively however, there are some expectations of OMOs. The OMO is a tool by which central bank controls the short term interest rate and the supply of base money in economy, thus indirectly controlling the total money supply. In the global space, on a day when all major Asian equity markets enjoyed an extended weekend, the Japanese benchmark remained the only index which was trading and trading with modest loss. The European futures too indicated a subdued opening for the markets there as marketmen looked forward for the European Union meet scheduled later in the global day where the region's leaders may decide upon measures to tackle a debt crisis.

Moreover, the broader markets traded on a flat note with marginal gains, outperforming their larger peers. The bourses consolidated on good volumes of over Rs 0.60 lakh crore. The market breadth on BSE was in favor of advances in the ratio of 1349:1166 while 119 scrips remained unchanged.

The BSE Sensex is currently trading at 16,707.29 down by 31.72 points or 0.19% after trading as high as 16,766.93 and as low as 16,659.32. There were 18 stocks advancing against 12 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index added 0.06% and Small cap rose 0.16%.

On the BSE sectoral space, FMCG up 0.99%, TECk up 0.86%, IT up 0.68%, Power up 0.51% and Bankex up 0.22% were the major gainers while Metal down 2.01%, Oil & Gas down 1.85%, Capital Goods down 1.37%, Auto down 0.65% and Realty down 0.35% were the major losers in the space.

Bharti Airtel up 2.12%, Cipla up 1.98%, HUL up 1.84%, ICICI Bank up 1.49% and BHEL up 1.26% were the major gainers on the Sensex, while Sterlite down 4.17%, Hero Moto down 3.47%, Hindalco down 3.28%, RIL down 3.06% and L&T down 2.77% were the major losers in the index.

Meanwhile, jewellery exports have declined by huge 15% in the month of December as compared to the same period last year. According to the Gems and Jewellery Export Promotion Council (GJEPC) India exported jewellery $3 billion in the month of December against $3.5 billion in December 2011.

The exports decline was mainly due to a slowdown in demand in the US and EU markets. According to the GJEPC Chairman Rajiv Jain, "There has been a demand slowdown for our products mostly from the western markets like the US and EU'.

Exports of cut and polished diamonds in December declined by 40% year on year in dollar terms while in volume terms, exports fell by 31%, to 36.38 lakh carats. Exports of cut and polished diamonds from India during the nine-month period of April-December 2011 lower by 5% in dollar terms. However, gold jewellery exports saw robust growth during December by 41% to $778.37 million. While, during the same period, silver jewellery exports too moved up by partly due to the low base effect. During the April-December period, gems and jewellery exports have grown 11.65% to $32.1 billion, compared to the same period last fiscal.

Exporters are now exploring new markets like Latin America, Africa and Russia to reduce dependence on traditional markets. Other major markets for the country's gems and jewellery exports include the UAE and Hong Kong. India mainly imports gold and rough diamonds in large quantities and re-exports value-added items like jewellery.

The S&P CNX Nifty is currently trading at 5,034.65, lower by 13.95 points or 0.28% after trading as high as 5,059.55 and as low as 5,021.35. There were 28 stocks advancing against 22 declines on the index.

The top gainers on the Nifty were Bharti Airtel up 2.07%, HUL up 1.83%, Grasim up 1.72%, Cipla up 1.49% and ICICI Bank up 1.42%.

Sterlite down 4.38%, Hero Moto down 3.48%, Hindalco down 3.38%, L&T down 3% and Reliance down 2.95% were the major losers on the index.

In the Asian space, only Nikkei 225 eased 0.1% to 8,765.90, while all other stock markets including that in China, Hong Kong, Indonesia, Malaysia, South Korea, Singapore and Taiwan remained closed in observance of a public holiday.

TIGHT RANGE

Benchmark equity indices oscillating in a tight range are trading on a flattish note as lack of buying interest in the local equity markets have led to lull at Dalal Street, a day of ahead of RBI monetary policy review. Disappointing start to Q3 earning season with Oil & gas major- Reliance Industries (RIL) reporting a 14 percent fall in October-December net profit on Friday, its first quarterly profit drop in more than two years as gross refining margins fell sharply, has mainly hit the market sentiment. However, gains in ICICI Bank, Infosys and Tata Power have counterbalanced the act to some extent. On the global front, US stocks ended mixed on Friday as investors were watchful of the Greek debt talk results. Meanwhile, most of the Asian markets remained closed on Monday in observance of a public holiday.

Back home, the market focus purely will be on guidance from company managements on outlook for the remaining part of the year and the next year as analysts expect weak Q3 numbers due to a slowing economy. Meanwhile, on the BSE Sectoral front, stocks from Oil & Gas, Metal and Capital Goods counters are the one's which are languishing at the bottom.

Thus in trade so far, the 30-share BSE index, which had gained over 287 points in the previous two sessions, was trading in red at 16,736.79. In a similar fashion, the wide-based National Stock Exchange Nifty index too losing traction was trading near to its neutral line. However, the gains at the broader space remained intact. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1378:739, while 99 shares remained unchanged.

The BSE Sensex is currently trading at 16,736.79, down by 2.22 points or 0.01%. The index has touched a high and a low of 16,766.93 and 16,659.32 respectively.   There were 20 stocks advancing against 10 declining one's on the index.

The broader indices sustained their positive momentum; the BSE Mid cap and Small cap indices were trading up by 0.73% and 0.72% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 1.19%, CD up by 0.95%, TECk up by 0.85%, Power up by 0.75% and IT up by 0.70%. While, Oil and Gas down by 1.80%, Metal down by 1.26%, Capital Goods (CG) down by 0.97% were the only losers on the index.

The top gainers on the Sensex were ICICI Bank up by 2.25%, Tata Power up by 2.14%, Bharti Airtel up by 1.67%, Cipla up by 1.64% and Tata Motors up by 1.37%.

On the flip side, Hero MotoCorp down by 3.06%, RIL was down by 3.01%, Sterlite Industries was down by 2.99%, L&T down by 2.37% and Hindalco Industries 2.26% were the top losers on the Sensex.

Meanwhile, even as India's economy is expected to expand at a weaker pace of 6.8% in calendar year (CY) 2012, against prior estimates of 8%, though the growth rate for Asia's third largest economy in CY 2013 is forecasted to pick up momentum steadily and clock growth rates of around 9.5%, according to Ernst & Young (E&Y), a global audit and consulting firm. In its previous Rapid-Growth Markets Forecast (RGMF) released in October 2011, the global audit and consulting firm had projected India's economic growth at 8% for CY 2012.

The recent RGMF advocates that despite the moderation, India's medium to long term growth outlook remains in place for a swift resurgence as improvement in both domestic and external demand will lead to the improvement in growth. Amid expectations of an improvement in global economic environment, fading liquidity tightening woes, increase in investment and rebound in exports, the GDP growth rate is expected to accelerate strongly in CY13 at 9.5%.

Underscoring the fact that the rapid-growth markets (RGMs) collectively are likely to witness a growth rate of around 5.3% this year, E&Y appeared confident that RGMs' robust economic performance will not be derailed by slackening demand, turbulent and volatile markets and credit liquidity problems in Europe, though it may have had some impact in the recent past. Meanwhile, the E&Y report also expects the Europe to dip into mild recession in H1 2012 while the US to register modest growth in 2012.

The S&P CNX Nifty is currently trading at 5,049.40, higher by 0.80 points or 0.02%.  The index has touched a high and a low of 5,059.55 and 5,021.35 so far. There were 31 stocks advancing against 19 declining one's on the index.

The top gainers of the Nifty were Tata Power up by 2.19%, ICICI Bank up by 2.14%, AXIS Bank up by 2.13%, JP Associates up by 1.56% and Grasim up by 1.54%.

On the flip side, Sterlite Industries down by 3.33%, Hero MotoCorp down by 2.91%, RIL down by 2.86%, L&T down by 2.41% and Hindalco Industries down by 2.37% were the major losers on the index.

In Asia, most of the markets are closed today. Japanese Nikkei up by 0.07% as US home sales rose to the highest level in almost a year, overlooking Greece's struggle to reach a deal with creditors to ease its debt burden. 

CAUTIOUS MARKETS

The Indian equity markets have made a dismal start following disappointing results from Index heavyweight Reliance Industries. However, the benchmarks recovered immediately to trade flat led by banks and technology stocks. Even the buyback offer from Reliance supported the stock to cut all the losses. Globally, the US markets closed mixed on last trading day of the week on the back of mixed earnings number and eyeing the talks between Greece and its lenders. In Asia, most of the markets are closed today, though those who are trading, are marginally in green. Back home, RIL lost about 3 percent due to disappointing results in Q3, but the downside was capped led by company's buyback offer. On the sectoral front banking witnessed the maximum gain in trade followed by power and consumer durables while, oil and gas, capital goods and fast moving consumer 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 1,025 shares on the gaining side against 505 shares on the losing side while 70 shares remained unchanged.

The BSE Sensex opened at 16,667.02; about 72 points lower compared to its previous closing of 16,739.01, and has touched a high and a low of 16,766.93 and 16,659.32 respectively.

The index is currently trading at 16,754.89, up by 15.88 points or 0.09%. There were 18 stocks advancing against 12 declines on the index.

The overall market breadth has made a strong start with 64.06% stocks advancing against 31.56% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.66% and 0.53% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 1.49%, Power up by 1.15%, CD up by 0.93%, TECk up by 0.65% and PSU was up by 0.60%. While, Oil and Gas down by 1.64%, CG down by 0.17%, FMCG down by 0.14% and Metal down by 0.04% were the only losers on the index.

The top gainers on the Sensex were ICICI Bank up by 3.06%, Tata Power up by 1.86%, Tata Motors up by 1.71%, NTPC up by 1.52% and BHEL was up by 1.46%.

On the flip side, RIL was down by 2.72%, Coal India was down by 1.63%, Sterlite Industries was down by 1.62%, Hero MotoCorp was down by 1.58% and L&T was down by 1.15% were the top losers on the Sensex.

Meanwhile, Coal producing states and companies have been asked to take appropriate steps to curb and check the theft of coal. In a statement, the Ministry of Coal said, 'law and order was a state subject and state/district administrations were requested to take necessary action to stop or curb the theft and black marketing of coal.

It stated that companies, on their part, had taken various measures to prevent the theft of the fuel. These included establishing check posts at vulnerable points, wall fencing, lighting arrangements and deployment of armed guards round-the-clock around the coal dumping yards. Regular patrolling in and around the mines was being done, including the Over Burden dumps. Armed guards had been deployed at Railway sidings. The company managements are also interacting and liaisoning with District Officials at regular intervals and holding meetings with District Collector & District Administration every month.

Further, to check theft, challans for coal transportation by trucks outside the district were issued after fixing hologram and putting signatures of authorized officials of Central Industrial Security Force (CISF). Regular FIRs were lodged by the Management of the collieries and CISF with local police stations against the theft of coal. A close watch on the activities of criminals is being maintained by CISF. In a phased manner, managements had been taking action for filling/dozing/scaling/blasting of the old/abandoned exposed coalfaces.

The statement comes at a time when the country is facing an acute shortage of coal. It is estimated that the country requires an additional 142 million tonnes of coal to meet its domestic demand. Recently there have been reports of widespread theft and illegal mining activity at Coal India (CIL) assets. CIL accounts for 80% of production of coal in the country.

As majority of mines are operated by Coal India's subsidiaries like Central Coalfields, Bharart Coking Coal, Mahanadi Coalfileds and Eastern Coalfields in Jharkhand, Odisha and West Bengal have reported several such incidents of theft and illegal mining. Early this month, Eastern Coalfields  also said that illegal mining and increased mafia operations had caused them a loss of about Rs 30 crore as production had been delayed at many of its mines.

The S&P CNX Nifty opened at 5,025.35; about 23 points lower compared to its previous closing of 5,048.60, and has touched a high and a low of 5,057.60 and 5,021.35 respectively.

The index is currently trading at 5,051.80, higher by 3.20 points or 0.06%. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were ICICI Bank up by 3.05%, AXIS Bank up by 2.06%, Grasim up by 1.88%, Tata Power up by 1.76% and JP Associates up by 1.71%.

On the flip side, RIL down by 2.83%, Coal India down by 1.71%, Maruti Suzuki down by 1.63%, Sterlite Industries down by 1.62% and Hero MotoCorp down by 1.47%, were the major losers on the index.

In Asia, most of the markets are closed today, though those who are trading, are marginally in green. Japanese Nikkei up 12.30 points or 0.14% to 8,778.66 as US home sales rose to the highest level in almost a year, overlooking Greece's struggle to reach a deal with creditors to ease its debt burden.