TRADING IN GREEN

Indian benchmarks are trading in the green terrain as C Rangarajan's statement over India's credit rating strengthened investors' confidence. However, the frontline indices made a flat-to-negative opening tracking weakness in global markets. All the Asian equity indices were trading in the red at this point of time. Chinese market too was marginally in red despite the report that China's services industries rebounded from the slowest expansion in at least 19 months, Services PMI rose to 55.5 in October from 53.7 the previous month. The September's reading was the weakest since a new seasonally adjusted series of the gauge began in March 2011. The US markets suffered sharp cuts on Friday, as traders turned cautious ahead of the Presidential election and also the better than expected jobs data raised concern about the US Fed's bond buying programme.

Back home, sentiments got some support with the Prime Minister's key economic adviser, C Rangarajan's statement that there is no case for lowering India's credit rating and global agencies need to look at the international scenario before taking any rating action. The telecom stocks like Idea Cellular, Reliance Communication and MTNL edged higher as in the CDMA spectrum auction now only one bidder 'Tata Teleservices' is left after Videocon decided to withdraw its application to bid for CDMA spectrum. In GSM segment there are still five players left in the race, however from there too, some are likely to withdraw their candidature.

On the sectoral front, consumer durables witnessed the maximum gain in trade followed by healthcare and fast moving consumer goods while, metal, software and power remained the top losers on the BSE sectoral space. The broader indices were going neck-to-neck with benchmarks while, the market breadth on the BSE was positive; there were 940 shares on the gaining side against 617 shares on the losing side while 71 shares remain unchanged.

The BSE Sensex opened at 18,749.37; about 6 points lower compared to its previous closing of 18,755.45, and has touched a high and a low of 18,792.34 and 18,737.13 respectively.

The index is currently trading at 18,783.62, up by 28.17 points or 0.15%. There were 17 stocks advancing against 13 declines on the index.

The overall market breadth has made a positive start with 57.74% stocks advancing against 37.90% declines. The broader indices too were trading in-line with benchmarks; the BSE Mid cap and Small cap indices rose 0.36% and 0.19% respectively.

The top gaining sectoral indices on the BSE were, CD up by 0.76%, HC up by 0.58%, FMCG up by 0.41%, CG up by 0.31% and PSU up by 0.23%. While, Metal down by 0.14%, IT down by 0.15%, Power down by 0.03% and Oil and Gas down by 0.01% were the few losers on the index.

The top gainers on the Sensex were Cipla up by 1.87%, ITC up by 0.90%, Dr Reddy up by 0.88%, Coal India up by 0.87% and Jindal Steel up by 0.81%.

On the flip side, HIndalco was down by 1.19%, Tata Steel was down by 0.98%, Bajaj Auto was down by 0.61%, Sterlite Industries was down by 0.59% and Infosys was down by 0.51% were the top losers on the Sensex.

Meanwhile, amid increasing fiscal deficits and tumbling investments, the Finance Minister P Chidambaram  has urged his cabinet colleagues to work united with the goal to overcome the policy paralysis, by noting that about 700 projects of investments totaling to Rs 7,500 crore are paused due to delays caused by the absence of regulatory approvals.

He noted that the lack of pace is due to the lack of environmental and other regulatory approvals as well as problems arising from land acquisition, difficulty in arranging financing and due to stringent fuel supply. He also stressed on garnering more investments into the nation, while noting that domestic and foreign cash inflows are drying up. The centre had introduced many reform measures including policies with procedural in nature, by aiming to break logjam and taking off the hurdles in investment flows.

About 300 projects came to a halt with approvals held up at various government departments in line with the peaked policy paralysis and bureaucratic delays, during September 2011 and June 2012, when finance ministry was headed by Pranab Mukherjee, now the President of India. He also pointed out that the fresh investment proposals has pummeled in the third quarter of 2012 , which notched near Rs 2,000 billion, while government investments has also trimmed to Rs 500 billion.

The finance ministry had revised the targeted fiscal deficit numbers to 5.3% from the envisaged figure of 5.1% in the 2012 budget. While the fiscal consolidation roadmap was put forth by the FM on October 29 calls for trimming the fiscal deficit to 4.8% for the fiscal ending March 31, 2014 and to 3% by 2016-17. And the trade deficit was forecasted to be a negative $180.3 billion, the current account deficit is expected to touch a negative $70.3 billion by the end of this financial year.

Amid this tough situation, the Prime Minister Manmohan Singh has also urged the ministers to increase the pace of approvals and to ensure to make the stranded projects back on track within the next five months of the current financial year, for reviving the growth of the nation.

The S&P CNX Nifty opened at 5,693.05; about 4 points lower compared to its previous closing of 5,697.70, and has touched a high and a low of 5,707.75 and 5,690.50 respectively.

The index is currently trading at 5,705.35, up by 7.65 points or 0.13%. There were 28 stocks advancing against 22 declines on the index.

The top gainers of the Nifty were Cipla up by 1.94%, RInfra up by 1.20%, Jindal Steel up by 0.85%, ITC up by 0.81% and Kotak Bank up by 0.77%.

On the flip side, Cairn down by 1.45%, Tata Steel down by 1.13%, Hindalco down by 0.98%, Sesa Goa down by 0.74% and DLF down by 0.73%, were the major losers on the index.

All the Asian equity indices were trading in the red; Shanghai Composite was down by 7.22 points or 0.34% to 22,036.81, Hang Seng lost 74.52 points or 0.34% to 22,036.81, Jakarta Composite declined by 28.02 points or 0.65% to 4,310.87, KLSE Composite was down by 3.69 points or 0.22% to 1,652.44, Nikkei 225 gained 27.86 points or 0.31% to 9,023.36, Straits Times declined by 18.03 points or 0.59% to 3,022.72, Kospi Composite was up by 11.57 points or 0.60% to 1,907.15 and Taiwan Weighted was down by 30.35 points or 0.42% to 7,180.12.

COMMODITIES TODAY

USDINR	5413.114	-----	5360.886
SILVER	59494.69	---	58807.31
LONG	59104.99	TARGET	59358.87	ST.LOSS	58986.94
SHORT	59262.09	TARGET	58965.82	ST.LOSS	59399.86
GOLD	30972.84	---	30777.16
LONG	30883.29	TARGET	30941.63	ST.LOSS	30856.17
SHORT	30928.11	TARGET	30829.77	ST.LOSS	30973.83
CRUDE	4699.367	----	4600.633
LONG	4646.338	TARGET	4680.885	ST.LOSS	4630.273
SHORT	4669.012	TARGET	4624.465	ST.LOSS	4689.727
NICKEL	887.4078	----	877.5922
LONG	880.5262	TARGET	885.0093	ST.LOSS	878.4416
SHORT	882.7546	TARGET	879.3915	ST.LOSS	884.3184
COPPER	428.374	----	424.626
LONG	426.2103	TARGET	427.6199	ST.LOSS	425.5548
SHORT	427.066	TARGET	425.4764	ST.LOSS	427.8052
N. GAS	190.0656		183.9344
LONG	187.5693	T	189.1955	ST.LOSS	186.8131
SHORT	189.0095		185.7033	ST.LOSS	190.5469
ALUM	104.1259	------	103.0741
LEAD	109.1747	-------	108.9253
ZINC	99.2028	-----	98.0972

NEGATIVE START

Prolonging their southbound journey, Indian benchmarks have made a negative start following subdued global cues. The US markets suffered sharp plunge on Friday with all the major indices losing over one and half a percent, led by tech stocks on some disappointing earnings announcements and poor home sales data while, most of the Asian counters were trading in the red at this point of time as lackluster earnings from leading US companies and a sharp drop in Japan's exports, a key driver of the world's third-biggest economy, dented risk appetites and prompted investors to take profits on recent gains.

Back home, the Indian frontline indices were trading range bound, after a initial fall, ahead of October F&O expiry on Thursday and RBI's policy meet on October 30. The sentiments also remained lower as UB group stocks like United Breweries (Holdings), United Breweries and Kingfisher Airlines tumbled after DGCA suspended flying licence of the group company Kingfisher Airline. However, the losses remain capped, supported by good Q2 numbers announced by IT bellwether TCS. The company, on consolidated basis, registered a rise of 49.25 percent in its net profit at Rs 3434.37 crore for the quarter ended September 30, 2012 as compared to Rs 2301.00 crore for the same quarter in the previous year. Meanwhile, Bajaj Auto too aided the sentiments on reporting rise of 2.05% in its net profit at Rs 740.67 crore for the quarter ended September 30, 2012 as compared to Rs 725.80 crore for the same quarter in the previous year.

On the sectoral front, software witnessed the maximum gain in trade followed by technology and healthcare while, realty, fast moving consumer goods and auto remained the top losers on the BSE sectoral space. The broader indices were trading mixed at this point of time while, the market breadth on the BSE was equally distributed; there were 785 shares on the gaining side against 796 shares on the losing side while 82 shares remain unchanged.  The BSE Sensex opened at 18,655.93; about 27 points lower compared to its previous closing of 18,682.31, and has touched a high and a low of 18,658.91 and 18,600.88 respectively.

The index is currently trading at 18,645.62, down by 36.69 points or 0.20%. There were 12 stocks advancing against 18 declines on the index.

The overall market breadth has been evenly divided with 47.20% stocks advancing against 47.87% declines. The broader indices however, were trading mixed; the BSE Mid cap index was down by 0.18% while, Small cap index rose 0.14%.

The few gaining sectoral indices on the BSE were, IT up by 0.83%, TECk up by 0.54%, and HC up by 0.20%. While, Realty down by 0.96%, FMCG down by 0.83%, Auto down by 0.83%, Metal down by 0.71% and CG down by 0.69% were the top losers on the index.

The top gainers on the Sensex were TCS up by 1.95%, Cipla up by 1.25%, Dr Reddy up by 1.06%, ICICI Bank up by 0.88% and HUL up by 0.79%.

On the flip side, Tata Motors was down by 1.45%, ITC was down by 1.38%, Sterlite Industries was down by 1.35%, Sun Pharma was down by 1.22% and Jindal Steel was down by 1.22% were the top losers on the Sensex.

Meanwhile, in conjunction with the widening of foreign direct investment (FDI) up to 51 percent, in multi-brand retail segment, the industry chamber ASSOCHAM and private sector lender Yes Bank, has come up with a joint report, which foresees about Rs 40,000 crore investment in multi-brand segment of India and expects an organized market growth to Rs 480,000 crore by 2016-17, as compared to 2011-12's Rs 160,000 crore growth. The report indicates that major foreign players are likely to create positive atmosphere for farmers, suppliers, consumers, economy and the enterprise itself.

It argues that FDI in retail will bring in adequate infrastructure, efficient management of supply chain, controlled food inflation, innovative products and new jobs. The study also points out that the foreign intervention will increase affluence among urban consumers, growing preferences for branded products and higher aspirations among youth will drive huge growth in organized retail segment of the country, which is expected to grow faster than total retail at 24% by 2016-17, with respect to stipulated 15% growth of total retail during the same period.

As per the study, the kirana stores are expected to contribute about 61% share of constant value sales, while modern grocery retailers will grow at a CAGR of 11.7% during 2011-16, where traditional grocery retailers is estimated to grow by 8.2%.

The S&P CNX Nifty opened at 5,667.60; about 17 points lower compared to its previous closing of 5,684.25, and has touched a high and a low of 5,672.40 and 5,658.05 respectively.

The index is currently trading at 5,669.55, down by 14.70 points or 0.26%. There were 14 stocks advancing against 36 declines on the index.

The top gainers of the Nifty were TCS up by 1.95%, Cipla up by 1.27%, Cairn up by 1.26%, ICICI Bank up by 0.81% and HUL up by 0.79%.

On the flip side, Ambuja Cement down by 1.94%, Tata Motors down by 1.52%, ITC down by 1.41%, Sun Pharma down by 1.40% and Jindal Steel down by 1.35%, were the major losers on the index.

Most of the Asian equity indices were trading in the red, Shanghai Composite was down by 12.48 points or 0.59% to 2,115.82, Jakarta Composite lost 8.73 points or 0.20% to 4,322.89, KLSE Composite was lower by 2.26 points or 0.13% to 1,664.25, Nikkei 225 plunged by 73.14 points or 0.81% to 8,929.54, Straits Times declined by 8.12 points or 0.25% to 3,041.00, Kospi Composite fell by 19.85 points or 0.99% to 1,924.24 and Taiwan Weighted was down by 64.46 points or 0.87%.

On the other hand, Hang Seng up by 16.60 points or 0.08% to 21,568.36 was the lone gainer.

COMMODITIES CALLS

SILVER	62065.14	---	61456.86
LONG	61859.98	TARGET	61993.64	ST.LOSS	61797.83
SHORT	62000.33	TARGET	61646.28	ST.LOSS	62164.97
GOLD	31464.83	---	31237.17
LONG	31353.19	TARGET	31425.92	ST.LOSS	31319.37
SHORT	31405.3	TARGET	31295.77	ST.LOSS	31456.23
CRUDE	4873.896	----	4818.104
LONG	4850.628	TARGET	4865.787	ST.LOSS	4843.579
SHORT	4863.476	TARGET	4833.917	ST.LOSS	4877.221
NICKEL	939.5582	----	922.6418
LONG	931.9703	TARGET	936.9136	ST.LOSS	929.6716
SHORT	935.8785	TARGET	927.2552	ST.LOSS	939.8884
COPPER	439.2726	----	435.9274
LONG	437.6009	TARGET	438.69	ST.LOSS	437.0945
SHORT	438.3666	TARGET	436.7775	ST.LOSS	439.1055

MARKETS IN FINE FETTLE

Indian equities continued to trade in fine fettle on back of strong buying in frontline counters in the late morning session. Most of the Asian equity indices were trading in the red after China's services industry weakened and concerns about the ongoing territorial dispute between China and Japan also weighed on investor sentiment. Back home, traders were seen piling up position in Oil &Gas, HC and Realty sector while selling was witnessed in CD , FMCG and Auto sector. Sun Pharma, Dr Reddys Lab, Cipla, Lupin, Ranbaxy Lab, Glaxosmithkline Pharmaceuticals and Divis Lab from HC pack were seen trading in green edging the markets higher. RIL, ONGC, BPCL, Indian Oil Corp and Oil India from Oil &Gas pack were seen trading firm in green. CD majors - Titan Industries, Rajesh Exports and Blue Star were capping the markets' gains. In the scrip specific development, Coal India gained on plan to sign fuel supply agreements by November.  SAIL rose as production jumped 7% in July-September 2012 period.  Religare Enterprises edged higher on getting nod for IFC's $75 million investment. Himadri Chemicals jumped on plan to invest Rs 525 crore for greenfield project at Odisha. RBNL gained on launching 'Big Magic International' in United States.  Govind Rubber soared on plan to set up tyre, bicycle manufacturing facility at Dahej.

The NSE Nifty and BSE Sensex were managing to hold their psychological 5,700 and 18,800 levels respectively. The market breadth on BSE was positive, in the ratio of 1534:783.

The BSE Sensex is currently trading at 18875.85 up by 51.94 points or 0.28% after trading in a range of 18882.21 and 18831.94. There were 19 stocks advancing against 11 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.56% and Small cap index was up by 0.74%.

On the BSE sectoral space, Oil &Gas up by 0.91%, HC up by 0.89%, Realty up by 0.62%, Power up by 0.58% and Metal up by 0.51% were the top gainers. While, CD down by 0.33%, FMCG down by 0.18%, Auto down by 0.03% and Bankex down by 0.03% were the top losers.

The top gainers on the Sensex were Dr Reddys Lab up by 2.53%, Hindustan Unilever up by 1.63%, Bharti Airtel up by 1.32%, Sterlite Industries up by 1.24% and RIL up by 1.19%. On the other hand, Jindal Steel down by 3.11%, ITC down by 1.79%, Hero Moto Corp down by 1.50%, BHEL down by 0.78% and Bajaj Auto down by 0.73% was only the loser on the Sensex.

 Meanwhile, the Empowered Group of Ministers (EGoM) on telecom headed by Finance Minister P Chidambaram is likely to meet today and take a decision on the one-time spectrum fee issue. It has been reported that the issue of re-farming of radio waves will also come up for discussion at the EGoM.

While, the incumbent operators had been allocated spectrum beyond the contractual limit of 6.2 MHz without any additional charges by the government, much of the spectrum to be vacated by the telecom companies that lost their licences following a Supreme Court verdict will be reserved for re-farming radio waves in the 900 Mhz band. The Department of Telecommunication (DoT) intends to take back the spectrum allocated to telcos in this band and replace it with airwaves in the 1,800 Mhz band at the time of renewal of licences, mainly, to auction it again.

The EGoM will also be discussing the issue of including additional blocks in its notice inviting application (NIA). Earlier, EGoM had decided to provide 8 blocks of 1.25 Mhz each for auction in this band and three additional blocks when required in some circles, after reserving spectrum for re-farming or reallocating them to companies at the time of their licences renewal. However, DoT in its NIA on September 28 has increased the number of spectrum blocks in 1800 Mhz band for auctions by three, except in Delhi and Mumbai circles. 

The S&P CNX Nifty is currently trading at 5,734.05, up by 15.25 points or 0.27% after trading in a range of 5,738.25 and 5,722.85. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were Siemens up by 3.39%, Dr reddy up by 2.65%, IDFC up by 2.65%, Ambuja Cement up by 2.17% and JP Associates was up by 2.09%. While, Jindal Steel down by 3.43%, ITC down by 1.76%, Hero Moto Co down by 1.48%, Axis Bank down by 0.95% and Grasim down by 0.88% were the losers on the index.

Most of the Asian markets were trading in red, Jakarta Composite was lower by 0.11%, KLSE Composite lost 0.59%, Nikkei 225 declined by 0.45%, Straits Times was lower by 0.47% and Taiwan Weighted declined by 0.2% while Hang Seng up by 0.11% was only the gainer.

Markets in China and Korea are closed today for holidays.

COMMODITIES TRADING CALLS

SILVER	63540.54	---	62203.46
LONG	62719.29	TARGET	63029.6	ST.LOSS	62518.66
SHORT	63919.92	TARGET	63271.36	ST.LOSS	64339.25
GOLD	31574.56	---	31185.44
LONG	31425.01	TARGET	31481.52	ST.LOSS	31388.48
SHORT	31449.81	TARGET	31349.92	ST.LOSS	31514.39
CRUDE	4963.203	----	4758.797
LONG	4888.17	TARGET	4916.521	ST.LOSS	4869.84
SHORT	4851.022	TARGET	4816.175	ST.LOSS	4873.552
NICKEL	997.6655	----	972.3345
LONG	978.5299	TARGET	985.7603	ST.LOSS	973.855
SHORT	982.4443	TARGET	978.6243	ST.LOSS	984.9142
COPPER	445.2483	----	436.7517
LONG	439.6926	TARGET	441.7918	ST.LOSS	438.3354
SHORT	439.9128	TARGET	438.7184	ST.LOSS	440.685

MARKETS FLAT

After rising over 400 points on Friday following Samajwadi Party's support to the government, key domestic benchmarks have made a flat opening, weighed down by weak global markets. The US markets ended flat on Friday though Spain's efforts to seek a bailout gave some support in early trade but late hours sell-off in some sectors washed the gains. The Asian markets were trading mostly in the red at this point of time on concern that talks among European leaders to resolve the region's debt crisis are not getting any headway. Also, there was report of decline in optimism in Chinese manufacturers and retailers, putting additional pressure on the regional indices.

Back home, the sentiments remained choppy in early deals after international rating agency Standard & Poor's cut India's GDP forecast to 5.5%. Earlier, Indian rating agency CRISIL too had slashed its forecast for the country's GDP growth to 5.5% from 6.5% earlier for this fiscal. HSBC has also cut growth forecast for fiscal 2012-2013. However, losses remain capped in the morning trade as some amount of strength came from public sector oil marketing companies. Shares of BPCL, HPCL and IOC edged higher on reports that they are planning to revise petrol prices downward due to falling international crude oil prices and a strengthening rupee. Sentiments also got some support as rupee continued its gaining streak against the dollar, inching closer to 53 levels on dollar selling by exporters. The Indian currency, in the early deals, was trading at 53.16 against the dollar, up 0.53 percent, or 28 paise, from Friday's close of 53.45.

On the sectoral front, power witnessed the maximum gain in trade followed by realty and auto while, fast moving consumer goods, capital goods and oil and gas remained the top losers on the BSE sectoral space. The broader indices were outperforming benchmarks while the market breadth on the BSE was evenly divided; there were 1,442 shares on the gaining side against 507 shares on the losing side while 63 shares remained unchanged.

The BSE Sensex opened at 18,756.31; about 4 points higher compared to its previous closing of 18,752.83, and has touched a high and a low of 18,811.13 and 18,687.60 respectively.

The index is currently trading at 18,715.29, down by 37.54 points or 0.20%. There were 14 stocks advancing against 16 declines on the index.

The overall market breadth has made a positive start with 71.67% stocks advancing against 25.20% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices surged 0.36% and 0.38% respectively.

The top gaining sectoral indices on the BSE were, Power up by 0.93%, Realty up by 0.32%, Auto up by 0.31%, HC up by 0.18% and PSU up by 0.16%. While, FMCG down by 0.91%, CG down by 0.51%, Oil and Gas down by 0.36%, IT down by 0.17% and TECk down by 0.05% were the top losers on the index.

The top gainers on the Sensex were BHEL up by 2.71%, Tata Power up by 2.48%, Jindal Steel up by 2.05%, Maruti Suzuki up by 1.72% and Bharti Airtel up by 1.34%.

On the flip side, HUL was down by 1.63%, ITC was down by 1.47%, L&T was down by 1.34%, Coal India was down by 1.16% and Tata Motors was down by 0.82% were the top losers on the Sensex.

Meanwhile, after Centre's strong policy reform measures of raising price of diesel by Rs 5 a liter and a cap on subsidized LPG cylinders despite strong protests from opposition, the Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan has stated that, though the government's new measure will curtail the fiscal deficit of the nation, it might result in an immediate push in price index in the short run. Though, he also expressed confidence that the nation's growth will attain the projected 6.7% in the current fiscal, while agriculture is expected to perform better than expected, with better monsoon rains.

Rangarajan also affirmed that the growth rate from next year onwards is expected to improve compared to that of present year. He also supported government's decision of allowing FDI in multi brand retail, by pointing that it will result in price reduction and improvement of infrastructural facilities in the agricultural marketing field and will also cause organized and much improved marketing system. He ruled out the fear that the foreign interventions will impact our small retailers negatively, by stating that in advanced countries neighborhood retailers continue to exist despite the presence of large number of departmental stores.

The S&P CNX Nifty opened at 5,691.95; flat compared to its previous closing of 5,691.15 and has touched a high and a low of 5,709.85 and 5,671.50 respectively.

The index is currently trading at 5,683.60, up by 7.55 points or 0.13%. There were 24 stocks advancing against 26 declines on the index.

The top gainers of the Nifty were Tata Power up by 2.73%, BHEL up by 2.67%, Jindal Steel up by 2.28%, Maruti Suzuki up by 1.92% and RInfra up by 1.71%.

On the flip side, HUL down by 1.76%, L&T down by 1.39%, ITC down by 1.36%, Coal India down by 1.10% and Tata Motors down by 0.82%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Jakarta Composite was up 22.79 points or 0.54% to 4,221.83, KLSE Composite was up 13.07 points or 0.80% to 1,610.63, Nikkei 225 was up 39.17 points or 0.43% to 9,070.83, Straits Times was up 1.41 points or 0.05% to 3,076.82 and KOSPI Composite Index was up by 3.66 points or 0.18% to 1,998.71.

On the flip side, Shanghai Composite was down 5.75 points or 0.28% to 2,032.44, Hang Seng was down 13.40 points or 0.06% to 20,748.34 and Taiwan Weighted was down by 11.03 points or 0.14% to 7,765.62.