Markets pare early gains; Sensex below 18,600 mark

Indian equity markets pared some early gains and continued to trade in positive territory amid alternate bouts of buying and selling across the counters. The 50-share NSE Nifty remained above the 5,650 level, while 30-share BSE Sensex fell below 18,600 mark. Increasing inflows of foreign money and hopes of more reforms to reduce fiscal deficit supported the market to a great extent. In currency markets, rupee extended gains against dollar on Wednesday following healthy capital inflows in the earlier session. On sectoral front, realty stocks have come off their lows, but are still mostly subdued. Oil and metal stocks were among the other laggards. Information technology, capital goods, power and bank stocks were moving in a tight band amid lackluster trades, while selective stocks from healthcare, automobile and consumer durables sectors were finding modest support. In global markets, Asian shares rose to their highest in over five months on strong US earnings reports. Back home, the market breadth favoring positive trend; there were 1,288 shares on the gaining side against 1,145 shares on the losing side while 134 shares remain unchanged.

The BSE Sensex is currently trading at 18,592.01 up by 14.31 points or 0.08% after trading in a range of 18,705.19 and 18,577.75. 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 0.07 points and Small cap index was up by 0.42%.

The top gainers on the BSE sectoral space were, CD up by 0.59%, HC up by 0.53%, Auto up by 0.31%, FMCG up by 0.15% and TECk up by 0.14%. While, Oil & Gas down by 0.45%, Metal down by 0.40%, Realty down by 0.37% and IT down by 0.02%, were the top losers on the sectoral space.

The major gainers on the Sensex were Tata Power up by 2.22%, Maruti Suzuki up by 0.98%, Bharti Airtel up by 0.67%, Hindalco up by 0.64% and ICICI Bank up by 0.59%. On the other hand, GAIL down by 1.57%, Reliance down by 0.97%, TCS down by 0.86%, Sterlite down by 0.70% and Cipla down by 0.67% were the major losers on the Sensex.   

Meanwhile, for the second time in the month, oil marketing companies (OMCs) slashed the price of Aviation Turbine Fuel (ATF) by 3 per cent, a move that would ease some burden of cash-strapped airlines since jet fuel constitutes over 40 per cent of an airline's operating costs.

Aviation Turbine Fuel (ATF) price at T3 terminal in Delhi was slashed by Rs 2,117 per kilolitre (kl), or 3 percent, to Rs 68,399 per kl with effect from October 15, midnight. In Mumbai, jet fuel will cost Rs 68,731 per kl as against Rs 70,949.97 currently. Meanwhile, Kolkata would see price cut by Rs 2,246 to Rs 75,491 per kl while the same will cost Rs 72,120 in Chennai from October 16, 2012 as against Rs 74,423.43 currently.

The reduction, which comes on heels of a steep 4.3 per cent (Rs 3194.72 per kl) cut in rates effective from October 1, was achievable on the back of firm rupee against US dollar, which made international oil cheaper. Prior to these cuts, ATF price were hiked on five occasions since July. State-run OMCs, viz, IOC, Hindustan Petroleum and Bharat Petroleum Corporation, revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight.

The S&P CNX Nifty is currently trading at 5,649.95, up by 1.95 points or 0.03% after trading in a range of 5,684.35 and 5,644.80. There were 29 stocks advancing against 19 declines and 2 remain unchanged on the index.

The top gainers of the Nifty were Tata Power up by 2.36%, Lupin up by 1.70%, PNB up by 1.58%, Cairn up by 1.33% and JP Associates up by 1.33%. While, DLF down by 1.90%, Ambuja Cement down by 1.77%, GAIL down by 1.59%, ACC down by 1.16% and TCS down by 1.06% were top losers on the index

Asian equity indices were trading mostly in the green; Kospi Composite was up by 0.70%, Shanghai Composite was up by 0.46%, Hang Seng was up by 1.06%, Jakarta Composite up by 0.29%, KLSE Composite was up by 0.31%, Nikkei 225 was up by 1.21% and Straits Times was up by 0.36% while Taiwan Weighted down by 0.09% was the lone loser.