Markets trade marginally higher amid alternate bouts of buying, selling

Following lower opening and subsequent retreat, Indian equity markets are trading marginally higher in the late morning session on Tuesday, amid alternate bouts of buying and selling. Investors were trading cautiously, as political uncertainty was weighing on sentiment amid lack of major triggers. The Sensex up by 37.29 points, while Nifty up 8.55 points. In currency market, rupee weakened against greenback amid increasing month-end demand for the American currency from importers. On the sectoral front, oil and realty stocks were among the prominent losers. Capital goods stocks too were mostly trading weak. Healthcare stocks were finding modest support, while FMCG stocks were outperforming the market. On the global front, Asian shares were trading mixed on Tuesday as investors contemplated potential flow-on risks from the Cyprus bailout scheme. Back home, the market breadth was favoring negative trend; there were 1,054 shares on the gaining side against 1,168 shares on the losing side while 111 shares remain unchanged.

The BSE Sensex is currently trading at 18,718.71, up by 37.29 points or 0.20% after trading in a range of 18,730.07 and 18,612.37. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.20% and Small cap index was up by 0.03%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.26%, FMCG up by 1.12%, TECk up by 0.62%, IT up by 0.52% and Health Care up by 0.23%, while Realty down by 1.84%, Oil & Gas down by 1.34%, Capital Goods down by 1.15%, Power down by 0.28% and Metal down by 0.04% were the top losers on the BSE.

The top gainers on the Sensex were Coal India up by 2.10%, ITC up by 1.70%, Hindustan Unilever up by 1.62%, Bharti Airtel up by 1.54%, Tata Motors up by 1.42%.

On the flip side, Gail India was down by 2.98%, RIL was down by 2.33%, L&T was down by 1.53%, Tata Steel was down by 1.51% and Tata Power was down by 0.84% were the top losers on the Sensex

Meanwhile, to consider the gas price pooling mechanism, Power Ministry is planning to approach Prime Minister Manmohan Singh-headed Cabinet Committee on Investments (CCI). The move is likely to prevent gas-starved power capacities becoming non-performing assets (NPAs). The ministry is also looking to take up the matter with the Cabinet panel as early as end-April.

The draft note for consultations with stakeholders would be floated shortly. The Power Ministry would take to CCI the availability versus demand for gas, current arrangements in the supply and implications of pooling for the economy and individual power producers.

At present, 33 mmscmd of domestic natural gas is supplied to the power sector. Of this, 23 mmscmd is supplied to power plants linked to the grid and another 10 mmscmd to off-grid plants. However, the Power Ministry won’t take up the pooling mechanism as a long-term mechanism. The proposals would cover 2013-14, 2014-15 and 2015-16. Further, the government is also looking to revive the proposal as additional infrastructure to import 21 mmscmd more of natural gas, is expected to be added in 2013-14.

The CNX Nifty is currently trading at 5,642.40 up by 8.55 points or 0.15% after trading in a range of 5,649.70 and 5,612.05. There were 23 stocks advancing against 26 declines on the index and one remains unchanged.

The top gainers of the Nifty were Ranbaxy up by 2.68%, Coal India up by 2.19%, HUL up by 1.91%, ITC up by 1.77% and Bharti Airtel up by 1.61%.

On the flip side, Siemens down by 3.16%, GAIL down by 3.06%, DLF down by 3.01%, Reliance Infrastructure down by 2.99% and Reliance Industries down by 2.29% were the major losers on the index.

Most of the Asian equity indices were trading in green; Jakarta Composite rose 0.81%, KLSE Composite strengthened 0.43%, Straits Times increased 0.26%, KOSPI Composite added 0.30% and Taiwan Weighted was up by 0.24 points.

On the flip side, Shanghai Composite tumbled 1.43%, Hang Seng declined 0.08% and Nikkei 225 was down 0.60%.