Indian markets trade flat in early morning session

Key benchmark indices were trading flat in early morning trades with the Sensex and the Nifty swinging between negative and positive zone. On the global front, the US markets closed higher overnight as reports underlining general improvement in the economy offset a disappointing outlook from Hewlett-Packard Company, lifting the major indexes into positive terrain for the week while, most of the Asian equity indices were trading in the positive territory at this point of time. Back home, Finance Minister Pranab Mukherjee said on Thursday that the government will try to raise the economic growth rate to 7.5-8% in the next fiscal from about 7% currently, which may boost the investor’s morale and help in recovery in latter part of the trade. On the sectoral front consumer durables witnessed the maximum gain in trade followed by software and technology while, banking and capital goods remained the only losers on the BSE sectoral space. Moreover, rising crude oil prices may be a concern for the market now; Brent crude was trading at around $124 a barrel that will impact inflation. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,003 shares on the gaining side against 488 shares on the losing side while 59 shares remained unchanged.

The BSE Sensex opened at 18,079.01; flat compared to its previous closing of 18,078.50, and has touched a high and a low of 18,198.15 and 18,057.83 respectively.

The index is currently trading at 18,070.53, down by 7.79 points or 0.0.04%. There were 24 stocks advancing against just 6 declines on the index.

The overall market breadth has made a strong start with 64.71% stocks advancing against 31.48% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.35% and 0.64% respectively.

The top gaining sectoral indices on the BSE were, CD up by 1.86%, IT up by 1.19%, TECk up by 1.13%, Metal up by 0.69% and FMCG up by 0.61%. While, Bankex down by 1.02% and CG down by 0.29% were the only losers on the index.

The top gainers on the Sensex were Sterlite Industries up by 2.17%, Bharti Airtel up by 1.82%, Hindalco up by 1.53%, TCS up by 1.44% and M&M up by 1.30%.

On the flip side, HDFC was down by 3.55%, ICICI Bank was down by 1.99%, HDFC Bank was down by 0.96%, L&T was down by 0.27% and Tata Steel was down by 0.16% were the top losers on the Sensex.

Meanwhile, Saudi Arabia, one of world’s leading oil producers and exporters has recognized India’s importance as one of the fastest growing markets in the world and has indicated that it will fulfill its energy requirements on a long-term basis.  India, which imports nearly 2 million tonnes of LPG from Saudi Arabia, has sought 5 million tonne of additional crude oil from the nation for the next fiscal.

RPN Singh, Minister of State for Petroleum & Natural Gas who was called by the Prince Abdul Aziz Bin Salman Bin Abdulaziz, Assistant Minister for Petroleum Affairs, Saudi Arabia to hold discussions on matters of bilateral cooperation in the oil and gas sector, conveyed India’s requirement of incremental quantities of Saudi Arabian oil imports in the years ahead considering the ongoing expansion in India’s refining capacity. The Saudi side assured affirmative consideration of India’s request for larger quantities of crude oil and LPG while also agreeing to look into the issues raised by India relating to the hydrocarbon trade and investment between the two countries.

At a time of heightened uncertainty in the international oil markets, Saudi Arabia, a leading producer of crude oil and India, the world’s 4th largest oil importer also discussed the global oil outlook, especially the growing demand for hydrocarbons in Asia and India during the delegation level talks. Besides, India also expressed its growing requirement of LPG (Butane and Propane) considering the accelerated expansion of LPG coverage in the country’s rural areas under the Rajiv Gandhi Gramin LPG Vitran Yojana (RGGLVY).

Saudi Arabia, which is the largest crude oil supplier to India, had supplied 27 million metric tonnes of crude oil to India during 2010-11. India has also invited Saudi participation in upcoming investment opportunities in its petroleum upstream and downstream sector including OPaL’s Petrochemical project at Dahej and OMPL’s Petrochemical project at Mangalore.

The S&P CNX Nifty opened at 5,479.15; 4 points lower compared to its previous closing of 5,483.30, and has touched a high and a low of 5,521.40 and 5,474.70 respectively.

The index is currently trading at 5,485.30, higher by 2 points or 0.04%. There were 39 stocks advancing against 11 declines on the index.

The top gainers of the Nifty were Sterlite Industries up by 2.04%, Bharti Airtel up by 1.64%, Cairn up by 1.56%, Hindalco up by 1.53% and TCS up by 1.48%.

On the flip side, HDFC down by 3.64%, IDFC down by 2.73%, ICICI Bank down by 2.02%, HDFC Bank down by 1.22% and Kotak Bank down by 1.14%, were the major losers on the index.

Most of the Asian equity indices were trading in the green; Shanghai Composite was up 7.60 points or 0.32% to 2,417.15, Nikkei 225 was up 20.29 points or 0.21% to 9,615.86, Straits Times was up 2.00 points or 0.07% to 2,970.34, Seoul Composite was up 9.58 points or 0.48% to 2,017.38 and Taiwan Weighted was up by 26.64 points or 0.34% to 7,963.94.

On the flip side, Hang Seng was down 21.04 points or 0.10% to 21,359.95, Jakarta Composite was down 76.93 points or 1.94% to 3,881.88 and KLSE Composite was down by 1.99 points or 0.13% to 1,554.67.