STILL CAUTIOUS

Sentiment continued to remain bearish for third day in a row and Indian key benchmarks were trading flat with negative bias after a positive opening on the back of negative global cues. US stocks fell overnight as political turmoil in Europe cast doubts on the euro zone's ability to push through measures to end its debt crisis. While, Asian counters too witnessing sluggish trade at this point of time. Back home, earnings continued to be in focus with investors rewarding companies that have met street estimates in the March quarter. Meanwhile, TCS, India's biggest software exporter, surged over 8 percent in early trade after Q4 profit rose 1.5 percent sequentially against expectations of a decline. Telecom stocks like Bharti Airtel, Reliance Communication and Idea all edged lower after the Telecom Regulatory Authority of India proposed a high reserve price for telecom spectrum to be auctioned, at nearly Rs 3,622 crore per MHz in the 1,800-MHz band for GSM services. Moreover, the broader indices slipped in the negative terrain. The market breadth on the BSE was equally divided; there were 757 shares on the gaining side against 769 shares on the losing side while 72 shares remained unchanged.

The BSE Sensex opened at 17,154.75; about 58 points higher compared to its previous closing of 17,096.68, and has touched a high and a low of 17,167.02 and 17,056.28 respectively.

The index is currently trading at 17,091.07, down by 5.61 points or 0.03%. There were 16 stocks advancing against 14 declines on the index.

The overall market has been evenly divided with 47.37% stocks advancing against 48.12% declines. The broader indices were slipped in the red; the BSE Mid cap and Small cap indices dipped 0.31% and 0.09% respectively.

The top gaining sectoral indices on the BSE were, IT up by 2.10%, TECk up by 0.69%, Power up by 0.19%, CD up by 0.19% and Metal up by 0.11%. While, Oil and Gas down by 0.66%, CG down by 0.53%, FMCG down by 0.45%, Auto down by 0.29% and Realty down by 0.13% were the top losers on the index.

The top gainers on the Sensex were TCS up by 8.92%, Wipro up by 1.96%, Hindalco up by 1.56%, Tata Power up by 1.08% and Cipla up by 0.81%.

On the flip side, Bharti Airtel was down by 5.15%, Maruti Suzuki was down by 1.48%, DLF was down by 1.38%, Infosys was down by 1.30% and RIL was down by 1.08% were the top losers on the Sensex.

Meanwhile, the Finance Minister, Pranab Mukherjee has stated that India has substantially reduced its oil imports from Iran. FM also stated that the country is facing immense problems due to the rise in the prices of crude oil.

A day after meeting his Iranian counterpart, Mukherjee has pointed out that India's import of oil from the sanction-hit country has reduced substantially, in the backdrop of US's objections that India had failed to reduce its purchases from Tehran.

The FM has clarified that India is currently importing about 14 million tonnes of crude from Iran which in percentage terms is much lesser than earlier. When India imported 100 million tones, Iran would contribute 20-21 million tones. Now the crude oil imports have shot up to 160-170 million tonnes out of which only 14 million are sourced from Iran.

Mukherjee also observed that the country is going through significant hardship due to rising prices of oil. Noting that while presenting the budget last year the government subsidies had been worked out on the assumption that the average oil price would be $90-95 per barrel. But actually average price of has turned out to be $100-115 per barrel, increasing the quantum of subsidy substantially.

The demand for crude oil has been considerably rising in the developing countries, especially India and China. India's oil imports are expected to be more than triple from 2005 levels by 2020, rising to 5 million barrels per day. However supply is getting affected due to American sanctions on Iran. India has so far maintained that Iranian oil is important for its economy and hence it would not stop importing from war torn country. In fact India has used the opportunity to increase bilateral trade between the two countries. However, with the recent statement by the FM it seems that some of the US pressure is weighing on India.

The S&P CNX Nifty opened at 5,215.90; about 15 points higher compared to its previous closing of 5,200.60, and has touched a high and a low of 5,221.60 and 5,185.00 respectively.

The index is currently trading at 5,196.50, down by 4.10 points or 0.08%. There were 26 stocks advancing against 24 declines on the index.

The top gainers of the Nifty were TCS up by 8.44%, HCL Tech up by 2.45%, Wipro up by 1.93%, Siemens up by 1.92% and Hindalco up by 1.60%.

On the flip side, Bharti Airtel down by 5.22%, RCom down by 2.39%, Maruti Suzuki down by 1.51%, DLF down by 1.43% and Infosys down by 1.37%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite crumbled 33.42 points or 1.40% to 2,355.17, Hang Seng declined 82.71 points or 0.40% to 20,541.68, Jakarta Composite slipped 6.95 points or 0.17% to 4,148.54, KLSE Composite dipped 3.30 points or 0.21% to 1,580.50, Nikkei 225 tumbled 115.64 points or 1.21% to 9,426.53, Seoul Composite contracted 15.10 points or 0.77% to 1,957.53 and Taiwan Weighted was down by 5.07 points or 0.07% to 7,476.02.

On the flip side, Straits Times was up by 9.40 points or 0.32% to 2,971.75.

MARKETS SLIP

Stock markets in India have retreated after showing signs of consolidation for most part of the morning session and the frontline equity indices are at the day's lows in early afternoon trades. The benchmark gauges failed to show resilience and succumbed to the selling pressure that the equity markets are experiencing across the globe. The key gauges extended their losing streak for a second straight session as it sank by around three fourth of a percent and looked set to slip below the psychological 5,450 (Nifty) and 17,250 (Sensex) levels. The Indian bourses, which were outperforming their Asian peers since early trades, sank in tandem with their European counterparts that got off to a gap down opening as market participants focused on the French presidential elections closely. Investors worried that the onerous financial crisis in Europe would aggravate as the incumbent President was once again seen losing ground in the second round of elections to a Socialist who wants to renegotiate a European treaty intended to limit excessive government spending in order to emphasize growth over austerity.  Sentiments also got undermined after reports showed Macquarie's Asia hedge fund has exited its short positions in Indian single stock futures in response to a controversial set of proposed tax rules that could lower investment returns. Investors also kept a close eye on Indian rupee which is around its three month low levels against US dollar, gradually moving towards 53 as macroeconomic concerns continue to abound, whether it be stalled financial sector reforms, slowing economic growth and capital inflows. However, the downside in frontline gauges was capped by the Oil & Gas sector which provided the much needed support to the indices. The index heavyweight Reliance Industries made its presence felt in the session by surging around a percent as investors reacted positively to its quarterly earnings announcement. However, the high beta Realty index remained the top laggard in the space with over two percent cut while the beaten down IT counters too got pounded ahead of the quarterly result announcement by bellwether TCS.

Moreover, the broader markets too succumbed to the selling pressure that was being exerted on their larger peers and drifted lower by over half a percent points. The bourses sank on good volumes of over Rs 0.60 lakh crore while the market breadth on BSE was in favor of declines in the ratio of 1405:1094 while 105 scrips remained unchanged.

The BSE Sensex is currently trading at 17,263.24 down by 110.60 points or 0.64% after trading as high as 17,444.18 and as low as 17,246.90. There were 8 stocks advancing against 22 declines on the index.

The broader indices were trading on a negative note; the BSE Mid cap index sank 0.75% and Small cap shed 0.54%.

On the BSE sectoral space, Oil & Gas up 0.50% was the only gainer, while Realty down 2.21%, IT down 1.99%, TECk down 1.71%, Power down 1.70% and Capital Goods down 1.36% were the major laggards in the space.

Tata Steel up 1.15%, RIL up 0.96%, ONGC up 0.58%, Sun Pharma up 0.53% and HDFC up 0.37% were the major gainers on the Sensex, while Infosys down 3.55%, DLF down 3.14%, BHEL down 3.07%, Hindalco down 2.72% and Tata Power down 2.10% were the major losers in the index.

Meanwhile, the Centre for Monitoring Indian Economy expects the post tax profit margins of India Inc to edge up by 1% points to 7.1% this fiscal. A fall in input prices, inflation and softer interest regime are expected to raise profit margins for businesses. Consequently net profits are expected to grow by 30.6% after falling by 6.6% in FY12.

Also a fall in international prices of raw materials such as crude, natural gas, edible oils and coking coal in FY13 are further expected to limit expenditure on inputs and increase profits for companies.

As per the economic think tank raw material expenses of the manufacturing sector area expected to be restricted to 8.2%, much lower than the sales growth of 10.1% projected for the year. Further softening of interest rates is expected to be beneficial for the manufacturing sector. Net profits are expected to grow by a robust 51.4% in 2012-13 as against 25.4% fall estimated for the last fiscal.

The non-financial sector too will grow by 11.2% in the ongoing fiscal on the back of a 9.9% reduction in the interest outgo. The government's grant of permission to aviation firms to raise $1 billion for working capital loans through the external commercial borrowing route, will reduce the interest costs for aviation companies.

Also with the electricity sector getting permission to refinance its debts with ECBs, costs are expected to dip for the industry. The removal of customs duty on imported coal and liquefied natural gas (LNG) is also expected to boost the bottomline of the sector.

The Reserve Bank of India in its last monetary policy lowered the interest rates by 50 basis points to encourage growth in the economy. As the cost of finance comes down, profit margins and hopefully investments are expected to go up. The RBI in the last fiscal had hiked interest rates 13 times to control the spiraling inflation. With inflation moderating in the past 2 months it has decided to shift its focus from controlling inflation to boosting growth.

The S&P CNX Nifty is currently trading at 5,254.60, lower by 36.25 points or 0.69% after trading as high as 5,310.55 and as low as 5,253.70. There were 11 stocks advancing against 39 declines on the index.

The top gainers on the Nifty were SAIL up 2.42%, Tata Steel up 1.31%, RIL up 1.06%, ACC up 0.63% and ONGC up 0.60%.

Infosys down 3.48%, R Com down 2.36%, IDFC down 2.83%, DLF down 2.76% and BHEL down 2.73% were the major losers on the index.

In the Asian space, Shanghai Composite sank 0.70%, Hang Seng plunged 1.23%, Jakarta Composite eased 0.10%, KLSE Composite shed 0.38%, Nikkei 225 fell 0.20%, Straits Times dropped 0.50%, Seoul Composite lost 0.10% and Taiwan Weighted declined 0.35%.

The European markets got off to a gap down start as France's CAC 40 plunged 1.54%, Germany's DAX plummeted 1.44% and Britain's FTSE 100 sank 0.81%.  

A BIT VOLATILE

After sneaking out slender gains post a muted start, barometer gauges have again cooled off from intra-day's high level. Despite this the mood continues to remain optimistic at Dalal Street albeit with cautious tone. Volatility is playing at the fore right from the dawn of trade as investor's adjust their position ahead of March month's F&O expiry series, which happens to be April 26, 2012. However, emergence of buying by funds and retail investors at select index-related stocks has aided bourses to trade in fine contour. Stocks of RIL, which are considered to be market bellwether, trading above a percentage points, are contributing to the positive milieu. Mukesh Ambani controlled company, despite posting 21 percent dip in fourth quarter earnings, has edged up on delivering the promise of becoming a debt free company. At the end of last financial year ended March 31, 2012, Reliance Industries (RIL) had total cash balance of Rs 70,252 crore ($13.8 billion), as against an outstanding debt of Rs 68,259 crore ($13.4 billion).

Stocks from Oil & Gas, Health Care (HC) and Public Sector Undertaking (PSU) counters, performing well for themselves were leading the list of gainers on BSE sectoral index, however, stocks from Realty, Information Technology and Power counters remained laggards.

However, ease of regional counterparts too was curbing the upturn of the bourses. Asian stock markets were mostly lower amid a lack of positive catalysts, while manufacturing data in China failed to dispel concerns of weakness in Asia's largest economy.  Meanwhile, the US future indices too were showing a downtick in the screen trade. Back home, BSE's Sensex was trading 25 points higher, below the 17400 level. Similarly, NSE's Nifty gyrating in thin band shied away from 5300 level. However, the broader indices kept outperforming larger counterparts.

The BSE Sensex is currently trading at 17,399.58, up by 25.74 points or 0.15%. The index has touched a high and low 17,444.18 and 17,336.89 respectively. There were 18 stocks advancing against 12 declines on the index. The overall market breadth on BSE was in the favour of advances which thrashed declines in the ratio of 1378:814, while 110 shares remained unchanged.

The broader indices too pared some gains; the BSE Mid cap and Small cap indices were up by 0.23% and 0.52% respectively.

The top gaining sectoral indices on the BSE were, Oil & Gas up by 0.77%, Health Care up by 0.37%, Public Sector Undertaking up by 0.33% and Fast Moving Consumer Goods up by 0.23% and Auto up by 0.17%. While Realty down by 0.77%, Information Technology down by 0.3%, Power down by 0.56%, TECk down by 0.47% and Capital Goods down by 0.03% remained the losers on the index.

The top gainers on the Sensex were ONGC up by 1.26%, Tata Steel up by 1.26%, RIL up by 1.20%, Coal India up by 0.81% and Maruti Suzuki up by 0.68%.

On the flip side, Tata Power down by 1.71%, Infosys was down by 1.67%, DLF down by 1.65%, Hindalco Industries down by 1.44% and BHEL was down by 1.28% were the top losers on the Sensex.

Meanwhile, India may see some important economic reforms like those in subsidies, deregulation of diesel and FDI in retail in the next six months, as per the chief economic advisor Kaushik Basu. However, the biggest reform GST (Goods and Services Tax) may not see the light of day as not everybody wants it to happen under the present regime.

Also there is a serious risk of another European crisis in 2014 and appropriate measures should to be taken to avert another global economic crisis. These comments have come in from Basu after he drew flak over his comments to a Washington based think tank a few days ago where he stated that no big ticket reforms were possible till 2014 elections.

Expanding on the subsidies reform, Basu has said that it is an important reform because the leakage in subsidies is substantial.  In fact the leakage is so big that if authorities can cut this down, it will help cut down the fiscal deficit. Usage of the UID system can help curb the leakage to a great extent. There was no assurance given on FDI in multi-brand retail, but it has been stated that it is likely to happen.

On deregulating diesel prices, Basu is of the opinion that a total deregulation may not be possible as it is a politically sensitive issue. However, a partial deregulation is possible under which a small subsidy that is fixed per liter, is extended. This will not only partially shelter the consumer but will also allow the rise and fall of global price to be mirrored in India, which according to Basu, is essential for market efficiency.

Putting across an interesting reason for why GST is so difficult, Basu has observed that all parties realise that it is a very good reform and hence not everybody wants it to happen under the present regime.

The S&P CNX Nifty is currently trading at 5,299.00, higher by 8.15 points or 0.15%. The index has touched a high and low of 5,310.55 and 5,274.75 respectively.  There were 26 stocks advancing against 23 declines on the index, while 1 stock remained unchanged.

The top gainers of the Nifty were SAIL up by 1.85%, ONGC up by 1.40%, ACC up by 1.39%, Reliance Industries up by 1.33% and Tata Steel up by 1.32%.

On the flip side, RCom down by 2.09% Tata Power down by 1.95%, DLF and Infosys were down by 1.60% and BPCL down by 1.51% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite declined by 0.19%, Hang Seng slid 0.59%, KLSE Composite descended by 0.42%, Nikkei 225 lost 0.10%, Straits Times was down by 0.26%, Seoul Composite surrendered 0.21% and Taiwan Weighted contracted by 0.47%.

On the flip side, Jakarta Composite up by 0.11%, were the only gainers on the index. 

CAUTIOUS TRADE

After making a negative start, Indian benchmarks immediately rebounded in the morning trade with Nifty regaining its crucial 5,300 mark. Moreover, investors are likely to react to the Q4FY12 earnings of India Inc this week but, trading cautiously as it is being the F&O series expiry week. Global cues remained subdued with most Asian markets trading lower. First-round results in France's presidential election indicated a lead for the Socialist party, which is opposed to the austerity measures. However, the sentiments got some support after Chinese PMI showed the nation's manufacturing activity gained some momentum in April, coming at 49.1 in April from a final reading of 48.3 in March but still remained below the level that signifies expansion for the sixth straight month. Back home, BSE's -- Sensex -- and NSE's -- Nifty -- regained their crucial, 17,400 and 5,300 mark respectively, supported by index heavyweights Reliance Industries, ICICI Bank and L&T. On sectoral front, consumer durables witnessed the maximum gain in trade followed by capital goods and banking while, software, technology and oil and gas remained the only losers on the BSE sectoral space. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,078 shares on the gaining side against 495 shares on the losing side while 71 shares remained unchanged. Overall it was a volatile opening ahead of April F&O expiry on Thursday.

Meanwhile, stocks of Reliance Industries, country's most valued company, traded 0.44 percent higher in spite of posting 21 percent fall in fourth quarter earnings which was reported after the close of trading hours on Friday. However, Software services provider Infosys lost 1.70 percent on report that the foreign brokerage firm CLSA sent letter to the company on performance.

The BSE Sensex opened at 17,347.76; about 26 points lower compared to its previous closing of 17,373.84, and has touched a high and a low of 17,423.12 and 17,336.89 respectively.

The index is currently trading at 17,407.07, up by 33.23 points or 0.19%. There were 22 stocks advancing against 8 declines on the index.

The overall market breadth has made a strong start with 65.57% stocks advancing against 30.11% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.35% and 0.56% respectively.

The top gaining sectoral indices on the BSE were, CD up by 0.70%, CG up by 0.54%, Bankex up by 0.49%, HC up by 0.39% and Auto up by 0.39%. While IT down by 0.49%, TECk down by 0.30% and Realty down by 0.23% remained the only losers on the index.

The top gainers on the Sensex were Tata Steel up by 1.23%, Maruti Suzuki up by 0.97%, TCS up by 0.93%, L&T up by 0.78% and Cipla up by 0.75%.

On the flip side, Infosys was down by 1.71%, DLF was down by 1.22%, Jindal Steel was down by 1.08%, Hindalco was down by 0.32% and NTPC was down by 0.30% were the top losers on the Sensex.

Meanwhile, the large increases in the imports of coal have become the next cause of worry for the government. Coal imports touched the highest ever figure of $17.5 billion in last fiscal, recording a rise of a whopping 80.3%. As a result, coal imports had a significant share in India's balance of trade gap in the last fiscal.

According to official figures, demand of coal was pegged at 650 million tonnes (MT) in 2011-12 and against this, the domestic availability was estimated around 545 MT. The deficit of 105 million tonnes (MT) was met through imports. In the next five years, the shortfall has been estimated in the range of 185-265 MT, which is again aimed to be bridged by importing coal.

Coal India, the largest producer of coal in the world, has been citing lack of forest and environmental clearances as the main reason in decline of production. According to the company, as many as 180 new proposals of the company are awaiting clearances, while production in some existing coal fields has come to a halt due to imposition of Comprehensive Environmental Pollution Index rules.

Besides coal, imports of crude oil and gold have been ballooning the trade deficit and have required intervention by the Finance Minister to keep them in check. Imports of coal increased by 46.9% and that of gold and silver were up 44.4% in the last fiscal.

The S&P CNX Nifty opened at 5,277.40; about 13 points lower compared to its previous closing of 5,290.85, and has touched a high and a low of 5,305.60 and 5,274.75 respectively.

The index is currently trading at 5,300.65, higher by 9.80 points or 0.19%. There were 33 stocks advancing against 17 declines on the index.

The top gainers of the Nifty were ACC up by 1.48%, Tata Steel up by 1.34%, RInfra up by 1.16%, Maruti Suzuki up by 0.97% and TCS up by 0.97%.

On the flip side, Infosys down by 1.68%, DLF down by 1.22%, Jindal Steel down by 1.19%, RCom down by 0.64% and BPCL down by 0.60%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite was down 4.14 points or 0.17% to 2,402.72, Hang Seng was down 126.34 points or 0.60% to 20,884.30, KLSE Composite was down 6.70 points or 0.42% to 1,585.15, Nikkei 225 was up 19.14 points or 0.20% to 9,542.22, Straits Times was up 7.39 points or 0.25% to 2,987.09, Seoul Composite was up 2.12 points or 0.11% to 1,972.53 and Taiwan Weighted was down 30.66 points or 0.41% to 7,476.49.

On the flip side, Jakarta Composite was up by 6.50 points or 0.16% to 4,187.87.

LISTLESS TRADE

The Indian equity markets continue to trade listless in a tight range. The benchmarks are still under pressure, marginally in red. Though most of the sectoral indices are trading in red but consumer durables, auto and technology was supporting the markets from falling further, while the broader indices were showing mixed trend. The non sectoral gauge of Aviation is buzzing since morning, the finance ministry on Thursday announced policy changes for the airline industry, allowing them to raise additional low-cost capital through external commercial borrowings. Reserve Bank of India is likely to notify the budget announcement of allowing the cash-strapped civil aviation sector to borrow up to $1 billion in external loans for a period of one year within seven days.

The BSE Sensex is currently trading at 17,483.49, down by 20.22 points or 0.12%. The index has touched a high and low of 17,507.90 and 17,442.23 respectively. There were 14 stocks advancing against 16 declines on the index.

The broader indices were showing mixed trend; the BSE Mid cap index was down by 0.09% while the Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were, Consumer Durables (CD) up by 0.54%, Auto up by 0.52%, Technology (TECk) up by 0.47%, IT up by 0.34% and Metal up by 0.07%

On the other hand Oil & Gas down by 0.67%, Capital Goods (CG) down by 0.63%, Power down by 0.39%, Realty down by 0.38%, and Bankex down by 0.25% were the top losers on the index.

The top gainers on the Sensex were M&M up by 1.99%, Maruti Suzuki up by 1.23%, Bharti Airtel up by 1.16%, Tata Steel up by 1.09% and Cipla up by 0.92%.

On the flip side, BHEL down by 1.02%, Tata Power down by 1.02%, RIL down by 0.90%, L&T down by 0.82% and HUL down by 0.80% were the top losers on the Sensex.

Meanwhile, India has surpassed Japan to become the third largest economy in the world in terms of purchasing power parity (PPP), as per data released by the International Monetary Fund (IMF). India's gross domestic product in PPP terms stood at $4.46 trillion in 2011, marginally higher than Japan's $4.44 trillion, making it the third-biggest economy after the United States and China.

India's share in world GDP in terms of PPP stood at 5.65% in 2011 against Japan's 5.63%, with the gap expected to widen significantly by 2017. In five years, the IMF estimates the share of India's GDP in PPP terms would grow to 8.09% compared with 4.8% for Japan.

These statistics are a reminder of the growth potential that the country has despite the prevailing mood of cynicism. It has successfully turned the spotlight back on India and its untapped potential.  However, it has to be kept in mind that Japan has recently faced a devastating tsunami and earthquakes, because of which its economy is expected to contract.

On the other hand, India's economy is estimated to have grown by about 7% over the past financial year. These factors have significantly contributed to the upward movement of India on the scale. India is also now Asia's second-largest economy, behind China.

PPP refers to the amount of money a person will have to spend to purchase the same basket of goods and services in one country as compared to the other. Based on this the relative value of currencies is determined. This method does away with the effect of a market determined currency and enables a comparison on real terms.

The S&P CNX Nifty is currently trading at 5,325.60, down by 6.80 points or 0.13%. The index has touched a high and low of 5,334.95 and 5,310.55 respectively. There were 22 stocks advancing against 28 declines on the index.

The top gainers of the Nifty were M&M up by 1.95%, Maruti Suzuki up by 1.14%, Bharti Airtel up by 1.04%, Tata Steel up by 1.04% and RCom up by 0.99%.

On the flip side, ACC down by 3.06%, Ambuja Cements down by 2.46%, IDFC down by 1.61%, JP Associates down by 1.25% and Reliance Industries down by 1.19%, were the major losers on the index.

Some of the Asian equity indices were showing signs of recovery; Shanghai Composite was trading up by 0.85% and Hang Seng was up by 0.30%

On the flip side, Jakarta Composite was flat while the KLSE Composite was down by 0.07%, Nikkei 225 lost 0.28%, Seoul Composite surrendered 1.26%, Straits Times was down by 0.10% and Taiwan Weighted plunged by 1.52%. 

PROFIT BOOKING

After exhibiting four continuous days of gains, key domestic benchmarks have made a sluggish start on Friday's morning trade on the back of profit booking amid weak global cues. Global markets were down on the back of disappointing US economic data and fears of French downgrade. While, most of the Asian counters too were witnessing choppy trade at this point of time. Back home, Sensex lost its crucial 17,500 mark in initial trade led by profit booking as the Sensex rallied more than 400 points in previous four sessions. Banking, metal and capital goods stocks remained under pressure while consumer durables, software and technology stocks were on buyers' radar. Meanwhile, Ambuja Cements and ACC lost 1.5-3 percent post quarterly earnings. Both the companies reported weak earnings on the back of one-time higher depreciation. Stocks of Aviation industry like, Kingfisher Airlines, Jet Air India and Spicejet rose as the finance ministry on Thursday announced policy changes for the airline industry, allowing them to raise additional low-cost capital through external commercial borrowings. ECBs will help cash-strapped private carriers, like Kingfisher Airlines and other companies to raise working capital from abroad. Moreover, Index heavyweight Reliance Industries (RIL), India's biggest company by market capitalisation, trading lower on likely to reporting a second consecutive quarter of lower profits in Q4. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 817 shares on the gaining side against 759 shares on the losing side while 77 shares remained unchanged.

The BSE Sensex opened at 17,459.72; about 44 points lower compared to its previous closing of 17,503.71, and has touched a high and a low of 17,485.60 and 17,442.23 respectively.

The index is currently trading at 17,457.02, down by 46.69 points or 0.27%. There were 13 stocks advancing against 17 declines on the index.

The overall market breadth has made a positive start with 49.43% stocks advancing against 45.92% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.10% and 0.16% respectively.

The top gaining sectoral indices on the BSE were, CD up by 1.09%, IT up by 0.48%, TECk up by 0.41%, HC up by 0.15% and Auto up by 0.07%. While, Bankex down by 0.55%, Metal down by 0.51%, CG down by 0.42%, Realty down by 0.39% and Oil and Gas down by 0.38% were the top losers on the index.

The top gainers on the Sensex were M&M up by 1.24%, Cipla up by 0.91%, Maruti Suzuki up by 0.91%, Infosys up by 0.78% and Wipro up by 0.63%.

On the flip side, Coal India was down by 1.31%, RIL was down by 1.19%, Tata Motors was down by 1.17%, Tata Power was down by 1.12% and Hindalco was down by 0.98% were the top losers on the Sensex.

Meanwhile, Telecom Regulatory Authority of India (TRAI) reiterated that licence fee will continue to be non-refundable to mobile service providers if they lose or surrender permits, while adding that a separate exit policy was not required for mobile phone companies who wanted to quit the business. TRAI's commendations will facilitate the government to save about Rs 10,000 crore, which was paid by the 122 licences that were quashed by the Supreme Court in its February 2, 2012 orders.

The regulator's recommendations, if accepted, will also result in dismissal of requests from companies like Loop, S Tel and Telenor that had demanded repayment of their licence fee from the government. Unitech Wireless or Uninor, majority owned by Norway's Telenor, has sought a reimbursement of Rs 1,659 crore paid as licence fee to the government when it acquired mobile permits while Loop wants around Rs 3,800 crore back from licence fee and damages.

Many players are willing to exit the telecom space due to stiff competition and lower profits but are unable to do so. They want clear guidelines on mergers and acquisitions (M&As) and exit policy. But, last month, TRAI had said it was not in favour of an exit policy for telcos since the Supreme Court, on February 2, 2012, had already cancelled all 122 telecommunication licenses issued to various operators in India's 22 service areas under the 2G spectrum sale by the government in January 2008 allegedly at very low prices favoring some companies, and thereby causing a loss of Rs 1.76 trillion (as per Comptroller and Auditor General report) to the exchequer.

But prior to the SC's orders in February 2, the telecom department had asked the regulator to exercise an exit-policy to allow some operators that had not even started operations, and others who wanted to wind down to exit the sector, as it felt that this was a better option compared to canceling the licences, as recommended by TRAI. While the regulator's recommendations are not binding on the government, TRAI has restated its suggestions from the draft proposal last month, which advises the government to continue with its present rules that allow a Telco to give up permits by giving a notice of 60 days.

In a separate development, the telecoms secretary R Chandrasekhar said the government was awaiting regulations on spectrum auction by TRAI that would give clarity on the next set of steps to be taken. He added that telcos seeking fresh licences need not wait for the National Telecom Policy, slated to be out by June, and could get permits after guidelines for unified licences are finalised by DoT.

The S&P CNX Nifty opened at 5,313.95; about 19 points lower compared to its previous closing of 5,332.40, and has touched a high and a low of 5,327.50 and 5,310.55 respectively.

The index is currently trading at 5,314.30, down by 18.10 points or 0.34%. There were 16 stocks advancing against 34 declines on the index.

The top gainers of the Nifty were Ranbaxy up by 1.17%, M&M up by 1.09%, Cairn up by 0.87%, Cipla up by 0.69% and Infosys up by 0.67%.

On the flip side, ACC down by 2.96%, Ambuja Cement down by 1.67%, Coal India down by 1.47%, Reliance Infra down by 1.34% and Tata Power down by 1.16%, were the major losers on the index.

Most of the Asian equity indices were trading in the green; Hang Seng was down 50.87 points or 0.24% to 20,944.14, KLSE Composite was down 1.12 points or 0.07% to 1,595.50, Nikkei 225 was down 34.75 points or 0.36% to 9,553.63, Straits Times was down 6.21 points or 0.21% to 3,002.00, Seoul Composite was down 24.51 points or 1.23% to 1,975.35 and Taiwan Weighted was down by 57.99 points or 0.76% to 7,564.70.

On the flip side, Shanghai Composite was up 14.29 points or 0.60% to 2,392.92 and Jakarta Composite was up by 2.01 points or 0.05% to 4,165.72. 

TIGHT BAND

Oscillating in a tight band, benchmark equity indices virtually are trading listless in absence of any positive trigger both from home as well as global front. Bourses for second trading session are showing signs of fatigue as consolidation seem to be game changer for indices at Dalal Street post initial two session's of run up rally. Stocks from Capital Goods (CG), Realty and Power counters are blurring the picture for 30 scrip sensitive BSE's benchmark index-Sensex- which gyrating in proximity to its neutral line, is currently afloat in negative terrain to trade sub 17400 bastion, a level, which is close to its intra-day low. However, the broader indices holding their neck in green for second consecutive session are outperforming the benchmarks. The widely followed index of National Stock Exchange-Nifty- on other hand, albeit turning flat is currently showing up in green, to trade above 5300 crucial level.

On the global front, Asian shares too moved in a narrow range on Thursday after the previous day's rally as investors grew cautious ahead of a key Spanish bond sale that would assess the country's ability to service its sizable debt burden, however Australian dollar and stocks got a lift from a report that China will continue to deliver policy easing steps.

Back on the home turf, however, Cement makers ACC and Ambuja Cements have managed to gain traction ahead of their quarterly results. Ambuja Cements is expected to announce its 1QCY2012 results. On the topline front, the company is expected to post a 19.7% YoY growth to Rs 2,643 crore. Meanwhile, ACC is expected to post a topline growth of 17.8% YoY to Rs 2,826cr on account of higher volumes and improved realization. However, even steel companies stocks in the likes of JSW Steel, Tata Steel and SAIL have managed to hog limelight on reports stating the likelihood of Steel companies hiking prices for third time in a month. However, even stocks from Auto, Health care and Information Technology have managed to lure attention. The overall market breadth on BSE continues to support advances which have thumped declines in the ratio of 1146:856, while 90 shares remained unchanged.

The BSE Sensex is currently trading at 17,392.16, down by 0.23 points. The index has touched a high and low of 17,448.44 and 17,371.35 respectively.  There were 14 stocks advancing against 16 declines on the index.

The broader indices continued to show resilience; the BSE Mid cap and Small cap indices were trading up by 0.35% and 0.24% respectively.

The top gaining sectoral indices on the BSE were, Auto up by 1.04%, HC up by 1.01%, IT up by 0.38%, CD up by 0.36% and TECk up by 0.32%. While, CG down by 0.68%, Realty down by 0.51%, Power down by 0.39%, Oil & Gas down by 0.34% and Bankex down by 0.32% were the top losers on the index.

The top gainers on the Sensex were Tata Motors up by 1.84%, Tata Power up by 1.69%, Maruti Suzuki up by 1.51%, Coal India up by 1.05% and Sun Pharma up by 1.01%.

On the flip side, BHEL down by 2.28%, ICICI bank down by 1.58%, Hindalco down by 1.57%, Sterlite Industries down by 1.24% and SBI down by 1.04%% were the top losers on the Sensex.

Meanwhile, Oil companies have threatened to raise oil prices if the government does not compensate them for the losses incurred. They have asked the government to allow them to increase the price of petrol by Rs 8.04 per litre (excluding state levies) with immediate effect.

As per oil companies they are suffering losses to the tune of Rs 2,287 crore which have now become unsustainable. If the situation persists, it will impede the ability of the companies to import crude oil and may affect product supply-demand balance.

Indian Oil, which is India's biggest fuel retailer by volume, has stated that state-run refiners cannot sustain a scenario where they import crude oil at $121.29 per barrel and sell at $109.03 per barrel. It is of the view that the government should temporarily regulate petrol prices and pay them the 100% compensation or reduce the excise duty on petrol from Rs14.78/litre by an amount equivalent to the under-recoveries on petrol and simultaneously advise the states to reduce the rates of sales tax, which vary from 15% to 33%. The RBI too in its recent credit policy has spoken in favour of increasing oil prices.

The outburst is a reminder of the fact that petrol prices continue to be controlled by the government inspite of them being officially deregulated. In the month of November-December, crude oil prices shot up to $125 per barrel but the oil companies were not allowed to raise prices in tandem because of the crucial assembly elections. Petrol prices were last revised on December 1 and have remained unchanged from December 16 to March 31.

Indian Oil is also seeking an increase in prices of the three fuels (diesel, kerosene, LPG) sold at subsidized rates as in 2012-13. The combined revenue losses of refiners on such sales could surge to Rs 2.04 trillion from Rs 1.39 trillion a year ago, against which full compensation is yet to be received.

The S&P CNX Nifty is currently trading at 5,303.45, up by 3.45 points or 0.07%. The index has touched a high and low of 5,320.65 and 5,294.55 respectively.  There were 21 stocks advancing against 29 declines on the index.

The top gainers of the Nifty were Tata Motors up by 2.05%, Tata Power up by 1.83%, Ranbaxy up by 1.62%, Maruti Suzuki up by 1.48% and Cipla up by 1.31%.

On the flip side, BHEL down by 1.99%, Reliance Infra down by 1.85%, Hindalco down by 1.49%, Sterlite Industries down by 1.10% and Wipro down by 1.09%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite declined by 0.12%, Jakarta Composite shed 0.36%, KLSE Composite slid 0.17%, Nikkei 225 descended by 0.90%, Seoul Composite surrendered 0.28%, Straits Times capitulated by 0.04% and Taiwan Weighted was trading flat.

On the flip side, Hang Seng up by 0.37% was the lone gainer on the index.