Markets continue positive trade ahead of retail FDI vote in Lok Sabha

Indian equity markets pared some early gains but still trading in positive territory in the late morning session amid some stock specific movement. Investors were trading cautiously ahead of the outcome of the crucial vote on foreign direct investment in multi-brand retail in parliament due later in the day. The 30-share BSE Sensex rose 62 points, while, the 50-share NSE Nifty was up 16 points. In currency markets, Indian rupee appreciated against dollar on Wednesday amid continued selling of the US currency by exporters and banks. On sectoral front metal, realty, capital goods, auto and FMCG sectors were trading in green, while IT and power sectors were trading in red. In global markets, Asian shares rose on Wednesday, led by gains in Chinese equities. However, concerns over whether US lawmakers can resolve a budget impasse before year-end to avert a possible economic slump weighed on sentiment. Back home, the market breadth favoring positive trend; there were 1,571 shares on the gaining side against 967 shares on the losing side while 95 shares remain unchanged.

The BSE Sensex is currently trading at 19,410.54 up by 62.42 points or 0.32% after trading in a range of 19,463.25 and 19,375.58. There were 21 stocks advancing against 9 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.72% and Small cap index was up by 0.74%.

The top gaining sectoral indices on the BSE were, Metal up by 1.64%, Realty up by 1.54%, Capital Goods (GC) up by 0.96%, Auto was up by 0.88% and Bankex up by 0.67%, while IT down by 1.08%, TECk down by 0.83% and Power down by 0.07% were top losers on the BSE.

The top gainers on the Sensex were Sterlite Industries up by 3.60%, Hindalco up by 3.51%, Tata Motors up by 2.47%, Tata Steel up by 2.09% and SBI up by 1.42%. On the flip side, Tata Power down 2.82%, Wipro down by 1.83%, Infosys down by 1.68%, Bharti Airtel down by 0.98% and Bajaj Auto down by 0.38% were the top losers on the Sensex.

Meanwhile, releasing the study titled ‘Indian Gems & Jewellery sector-2012’, industry body ASSOCHAM has asserted that the government should be alert on the gems and jewellery trade, as China is attempting to corner supply of rough diamonds by pushing for direct deals with African countries.

According to the study, this action will however affect Surat, which accounts for about 95 percent of the world's diamond trade, may lose its crown of 'The Diamond City' to China. Expressing concern over Surat-based diamond polishing units considering to relocating, ASSOCHAM said it could also affect the employment scenario. Currently, about six lakh people are employed in Surat's diamond trade and an additional two lakh elsewhere in Gujarat.

As per the study, 2010-11 saw UAE emerge as the biggest (47 per cent) destination for India's gems and jewellery trade followed by Hong Kong and USA with shares of 22 percent and 11 percent respectively. Further, Surat accounts for about 90 percent of diamond processing activities carried out across Gujarat. The State accounts for about 80 percent of total diamond processing done throughout India.

The S&P CNX Nifty is currently trading at 5,905.80, up by 16.55 points or 0.28% after trading in a range of 5,917.80 and 5,894.25. There were 36 stocks advancing against 14 declines on the index.

The top gainers of the Nifty were Hindalco up by 3.33%, Sesa Goa up by 3.30%, Tata Motors up by 2.43%, PNB up by 2.12% and Tata Steel up by 2.00%.

On the flip side, Tata Power down by 2.69%, Infosys down by 1.99%, Wipro down by 1.96%, HCL Tech down by 1.50% and Bharti Airtel down by 1.19% were the top losers on the Nifty.

All the Asian markets were trading in green, Shanghai Composite was up by 3.03%, Hang Seng was up by 1.58%, Jakarta Composite gained 0.11%, KLSE Composite inched higher by 0.25%, Nikkei 225 was up by 0.39%, Seoul Composite was up by 0.61%, Straits Times was up by 0.61% and Taiwan Weighted gained 0.63%.