Sensex, Nifty manage to keep head above water; TECk, IT lead

After making flat to positive start, Indian equities are trading above the neutral line on back of strong buying in frontline counters in the late morning session. On global front, Asian markets were trading mostly in the negative terrain at this point of time amid concerns about the looming US ‘fiscal cliff’. Back home, traders were seen piling up position in TECk, IT and CG sector while selling was witnessed in Auto, CD and Power sector. Infosys, Wipro, Tech Mahindra, from IT pack were seen trading in green. However Auto stocks - Tata Motors, Mahindra & Mahindra, Bajaj Auto, Maruti Suzuki and Hero MotoCorp were capping the markets’ gains. In the scrip specific development, Emkay Global Financial jumped on tying up with London based boutique investment bank.  Biocon gained on entering into an option agreement with Bristol-Myers Squibb for its ‘IN-105’. Sintex Industries edged higher on launching $150 million worth step down FCCBs. Lanco Industries zoomed on receiving approval for Mini Cement Plant project. MMTC surged on inviting bids for export of 100,000 tonnes of wheat. Muthoot Finance edged higher on inking pact with PFRDA. The NSE Nifty and BSE Sensex were managing to hold their psychological 5,600 and 18500 levels. The market breadth on BSE was positive, advances: declines in the ratio of 1224:859

The BSE Sensex is currently trading at 18532.25 up by 60.88 points or 0.33% after trading in a range of 18545.58 and 18490.81. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.60% and Small cap index was up by 0.34%.

The top gaining sectoral indices on the BSE were, TECk up by 0.90%, IT up by 0.83%, CG up by 0.64%, FMCG up by 0.63% and PSU up by 0.59%. While, Auto down by 0.48%, CD down by 0.06% and Power down by 0.01% were the top losers on the index.

The top gainers on the Sensex were Bharti Airtel up by 2.16%, Jindal Steel up by 1.94%, Infosys up by 1.83%, ITC up by 1.48%, and ONGC up by 1.16%. On the flip side, Cipla was down by 1.32%, Tata Motors was down by 0.83%, HDFC was down by 0.79%, Gail India was down by 0.79% and Sterlite Industries was down by 0.66% were the top losers on the Sensex.

Meanwhile, Finance Minister P Chidambaram has asked the Reserve Bank of India (RBI) to finalise guidelines for new bank licences and start accepting applications for the same in anticipation of the amendment in the Banking Regulation Act. The draft norms have pegged the minimum required capital for promoting bank at Rs 500 crore and limit foreign shareholding at 49% for the first 5 years.

As per the RBI's draft norms released in August 2011, private sector firms or groups owned and controlled by Indian promoters, with diversified ownership, sound credentials and integrity, and having successful track record of at least 10 years, would be eligible to promote banks.

The Minister further said the power or the authority which the RBI wants is already available in the other provisions of the law and with the central bank's own regulations and guidelines for new banking licenses.

Further, if RBI proceeds to receive application and process them, even then the first banking licence is not likely to be issued in the next six or eight months. Hence, with the time the licence is issued and the banks come to existence and the banks begin to function, the banks regulation act would have been amended, the Minister added. 

The S&P CNX Nifty is currently trading at 5,643.90, up by 12.90 points or 0.23% after trading in a range of 5,646.70 and 5,624.80. There were 25 stocks advancing against 25 declines on the index.

The top gainers of the Nifty were Bharti Airtel up by 2.48%, Jindal Steel up by 2.28%, Infosys up by 1.84%, JP Associates up by 1.53% and ITC up by 1.48%.On the flip side, HDFC down by 1.42%, Cairn down by 1.23%, Cipla down by 1.23%, Tata Motors down by 0.97% and HCL Tech down by 0.92%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Kospi Composite down by 0.58%, KLSE Composite down by 0.25%, Taiwan Weighted down by 0.19% and Shanghai Composite was down by 1.10%.  While Nikkei 225 up by 1.99%, Straits Times up by 0.23% and Hang Seng up by 0.25% were the gainers. Jakarta Composite remained closed.