Markets pare gain; trade in flat territory

The benchmark indices have pared most of the gains and are trading flat in the mid morning session. Lack of any upside trigger is preventing the markets to move upward. However, the gains in the market heavy weight Reliance Industries was single handedly keeping the markets in the green terrain, otherwise the IT sector stocks continue to remain in the somber mood. The power sector stocks too are buzzing ahead of a meet of top brass of India’s power companies with the prime minister and top minister to talk about the government facilitating easier supply of fuel, coal, natural gas. The issues expected to come up include coal shortage, the strained financial health of distribution companies and rate issues involving new ultra mega power projects (UMPPs). Banking sector too is looking weak with majors like ICICI Bank pulling the index down.

The BSE Sensex is currently trading at 16,480.84, up by 14.79 points or 0.09%. The index has touched a high and a low of 16,514.05 and 16,427.98 respectively. There were 29 stocks advancing against just one decline on the index.

The broader indices were slightly outperforming the benchmarks; the BSE Mid cap index was up by 0.16% while the small cap index was trading up by 0.39%.

The top gaining sectoral indices on the BSE were, Oil & Gas up by 2.83%, Power up by 0.80%, realty up by 0.68%, PSU up by 0.44% and Health Care was up by 0.35%.

On the flip side IT down by 2.11%, TECk down by 1.27%, Bankex down by 0.56%, Metal down by 0.47% and Auto was down by 0.19%.

The top gainers of the Sensex were RIL up by 3.88%, Tata Power up by 2.98%, DLF was up by 2.85% Hero Moto Corp was up by 2.34% and HDFC Bank was up by 1.53%.

On the other hand TCS down by 2.98%, M&M down by 2.68%, Wipro down by 2.13%, Infosys down by 1.85%, Tata Steel down by 1.635 and ICICI Bank down by 1.59% were the top loser.

Meanwhile, India's cash strapped aviation industry is likely to get a new lease of subsistence as the Civil Aviation and Union Finance ministers in their meeting agreed upon permitting foreign carriers to buy stakes in Indian airline up to 49 percent. The proposal to allow foreign airlines, which are at presently barred from owning stakes in domestic carriers, to infuse 49 percent foreign direct investment (FDI) in Indian carriers will soon be presented before the Union Cabinet for approval.

The development has emerged after months of lobbying by loss making airlines like Kingfisher Airlines and GoAir and also after Prime Minister Manmohan Singh assured the country will find ways and means to help domestic airlines. 49 percent FDI already exists in the Indian aviation sector, but only from financial and other non-airline investors from abroad. Once the move materializes, it would enable the much needed cash injections for the distressed Aviation sector which have been struggling in the extremely competitive market and help it tide over the current financial crisis.

Meanwhile, the ministers also agreed upon to provide Air India with Rs 150 crore for payment of portion of pending salaries and allowances of employees, including pilots. Aviation minister is of the belief that the amount released would be sufficient to pay at least some part of their wages and PLI (productivity-linked incentives). A decision on the airline's loan restructuring and the proposal to allow local airlines to import ATF is also expected in the next meeting of the group of ministers.

The S&P CNX Nifty is currently trading at 4,967.65, up by 0.35 points or 0.01%. The index has touched a high and a low of 4,980.65 and 4,949.35 respectively. There were 27 stocks advancing against 22 declines, while 1 stock remained unchanged on the index.

The top gainers of the Nifty were BPCL up by 3.96%, Reliance Industries up by 3.87%, RPower 3.10%, Reliance Infra up by 2.24% and Hero MotoCorp was up by 2.16%.

On the other hand, TCS down by 3.22%, M&M down by 2.88%, Axis Bank 2.49%, Wipro down by 2.47% and Tata Steel down by 1.95% were the top losers on the index.

Most of the Asian markets were trading in green; Shanghai Composite was down by 0.33%, Seoul Composite was down by 0.20% and Taiwan Weighted lost 0.33%.

On the other hand Hang Seng was up by 0.20%, Jakarta Composite was up by 0.08%, Nikkei 225 surged by 1.25% and Straits Times was up 0.15%.