Markets trade firm within narrow band

Indian equity markets dives into red after trading firm but rebounded swiftly and currently moving within narrow band on lack of positive global cues. Investors were trading cautiously and using rallies to lighten commitments. Meanwhile Reliance Industries is up nearly a percent and rallied sharply earlier this morning on reports that the government has approved the company's $1.5 billion plan to produce over 10 million standard cubic meters of gas per day from the four satellite fields in the KG Basin D6 Block. On the sectoral front, FMCG, information technology and realty stocks were trading firm. Power, bank, oil and capital goods stocks were trading mixed, while consumer durables, metal and automobile stocks were pulling the markets down. On the global front, most of the Asian markets were trading mixed. Back home, the market breadth favoring the positive trend; there were 1,200 shares on the gaining side against 1,195 shares on the losing side while 122 shares remained unchanged.

The BSE Sensex is currently trading at 17,269.86, up by 73.39 points or 0.43%. The index has touched a high and a low of 17,356.77 and 17,179.33 respectively. There were 18 stocks advancing against only 11 declines and one remained unchanged on the index.

The broader indices were following the benchmark; the BSE Mid cap and Small cap indices rose by 0.02% and 0.21% respectively.

The top gaining sectoral indices on the BSE were, Fast Moving Consumer Goods (FMCG) up by 1.52%, Information Technology up by 0.98%, Technology up by 0.88%, Realty up by 0.73% and Power up by 0.48%.

On the flip side, Metal down by 0.93%, Consumer Durables (CD) down by 0.68%, Auto down by 0.59% and Public Sector Undertaking (PSU) down by 0.22%

The top gainers on the Sensex were HUL up by 2.40%, ITC up by 1.96%, HDFC Bank up by 1.28%, TCS up by 1.27% and Sun Pharma up by 1.06%.

While, Maruti Suzuki down by 2.61%, Sterlite Industries down by 2.11%, Bajaj Auto down by 1.98%, Hindalco Industries down by 1.88% and Coal India down by 1.71% remained the few losers on the Sensex.

Meanwhile, the government has cleared 16 FDI proposals totaling to an investment of about Rs 233 crore. The clearances have been given on the recommendations of the Foreign Investment Promotion Board (FIPB). Major companies who have been granted clearance are the Karnataka-based VRL Logistics, CIIE Initiatives and Softgel Healthcare, Chennai. Most FDIs in India are cleared through the automatic route but certain sectors like defense and telecommunications, which are considered to be sensitive, require government approval.

The largest FDI proposal, worth Rs 175 crore, has been cleared in favour of VRL Logistics which allows it to invite foreign investment in areas of transportation of goods and passengers, courier services other than postal services, aircraft charter services, and wind power generation, involving the installation and sale of electricity produced by wind power generators.

CIIE Initiatives, a trust set up by IIMA in collaboration with GOI and the Gujarat government, has been allowed to increase foreign investment to the tune of Rs 40 crore. It has also been granted permission to increase the percentage of foreign investment in its trust.

The decision on the proposal to set up a joint venture for defence manufacturing of Mahindra and Mahindra has been deferred. Bharti Shipyard's application to undertake additional defence production activity has also been deferred. Another deferred proposal is from HSBC Insurance Services Holdings, London, for infusion of foreign investment into an Indian company that does not have any operations or downstream investments. The total number of deferred proposals amount to 21.

These further include Network 18 Media & Investment, YourNest Angel Fund Trust, Domino Printing Sciences Plc, UK, Advent Business Credit Development Company, Pune and Reed Elsevier India. Next meeting of the FIPB is scheduled for March 30.

The S&P CNX Nifty is currently trading at 5,242.20, higher by 13.75 points or 0.26%. The index has touched a high and a low of 5,278.45 and 5,220.00 respectively. There were 23 stocks advancing against 26 declines and one remained unchanged on the index.

The top gainers of the Nifty were HUL up by 2.53%, ITC up by 2.00%, Cairn India up by 1.87%, Ambuja Cement up by 1.22% and TCS up by 1.18%.

On the flip side, Maruti Suzuki down by 2.42%, Bajaj Auto down by 2.13%, Hindalco Industries down by 2.07%, Sterlite Industries down by 1.89% and Axis Bank down by 1.74% remained the top losers on the index.

Asian equity indices were trading mixed; Shanghai Composite declined 0.83%, Hang Seng dropped 1.32%, Nikkei 225 plunged 1.14%.

On the flip side, KLSE Composite added 0.08%, Straits Times increased by 0.25%, Seoul Composite up by 0.04% and Taiwan Weighted was up by 0.21%.