Sensex consolidates

Indian equity benchmarks were just hovering around their previous closing values at 12 hours - the Nifty has been in a range of 5860-5900 for the third consecutive session today.

Heavyweights like SBI, HDFC, L&T and ICICI Bank were supporting the markets. However, TCS, NTPC, Reliance Industries, Infosys, Bharti Airtel, HDFC Bank, ONGC and Wipro were keeping the markets in a negative terrain with moderate losses.


The broader indices continued to hog the limelight - the BSE Midcap Index has been moving higher for the 14th consecutive session and the Smallcap Index higher for the seventh straight session - both gained 1% each.

Nifty volatile on quiet global cues

Indian equity benchmarks were moderately lower in the opening trade today following quiet trade across the globe. Indices have been consolidating for the third consecutive session today.

According to Sonam Udasi head of research at IDBI Capital, the Nifty should consolidate at these levels. "Though the momentum is showing a bit of positivity in the near-term, the noise about the headwinds on crude and inflation we feels are getting stronger by the day and that should prevent a huge upside from here. Thus we foresee challenges in the near-term".

The Sensex hovering between 17,000 and 19,500 in the near-term.

At 9:18 hours IST, the 30-share BSE Sensex was trading at 19,575, down 36 points and the 50-share NSE Nifty fell 12 points to 5,879.

Among frontliners, Sesa Goa (down 2% on profit booking), Cairn India, Maruti, Tata Motors, Infosys, TCS, SBI, Bharti Airtel, Jaiprakash Associates, HDFC Bank and Kotak Mahindra Bank were dragging the markets down marginally.

However, Power Grid, DLF, GAIL, ONGC, HDFC and Axis Bank were witnessing buying interest.

However, the CNX Midcap Index rose 12 points to 8,354. About 570 shares advanced as against 330 shares declined on National Stock Exchange.

Govt. bans food imports from Japan for 3 months

NEW DELHI: The Indian government on Tuesday suspended food imports from Japan over fears these may be contaminated by radiation from tsunami-hit reactors. Speciality restaurants that serve sushi and tofu assured these won't go off the menus immediately but predicted a price hike.

So far, three samples of frozen rice and soft drink that arrived in India last Saturday have been sent for testing.

The ban decision for three months or until such time as credible information is available that the radiation hazard has subsided to acceptable limits came at a meeting on Monday. The Food Safety and Standards Authority of India (FSSAI) will undertake a weekly review, the Union health ministry said in an advisory.

Though import of food products from Japan is estimated at a little over $1 million during April-September 2010, the demand for fish and packed food products has picked up in recent years. Since October, the list of products that has entered the country from Japan included soybean curd, dried noodles, boiled mushrooms, radish paste, cooking sauces, roasted seaweed, flavouring extracts, tea bags, wheat flour, food additives and tofu. Now, these products would be off the shopping list.

JP Morgan upgrades India

JP Morgan has upgraded India to Overweight. The reason behind this upgrade are three macro drivers: Decline in headline inflation; Normalization of the yield curve; And progress in passing legislation post 2010 corruption stalemate.The group has rated China as Neutral and downgraded Hong Kong to Neutral. They remain Underweight on Korea.

In its recent report JP Morgan analyses that Indian equities have started outperforming emerging markets after significant underperformace from October 2010.

Speaking about China, JP Morgan's Chief Asian and Emerging Equity Strategist Adrian Mowat had told CNBC TV18 in an interview on March 15 that the GDP numbers may need to be downgraded in China based upon some of the loan growth data, the monetary aggregates and the PMIs. "The economic backdrop is deteriorating at the same time as issues such as the Japanese earthquake, unrest in the Middle East are coming to fore once more."

Sesa Goa top gainer

Indian equity were positive with moderate gains in opening trade today despite rising crude oil prices on Middle East tensions. Asian markets too were quite supportive. The Nifty was inching towards 5950 level.

Buying was seen in metal, Auto, cement, telecom, Anil Dhirubhai Ambani Group, power and select financial companies' shares.

Hemen Kapadia, chartpundit.com is positive that as long as we remain above 5920 in terms of Nifty Futures one can expect the rally to continue.

Among frontliners, Maruti Suzuki, Sesa Goa, Grasim, ONGC, Hindalco, Hero Honda, Cairn, Jaiprakash Associates and BHEL were leading markets with moderate gains.

Sesa Goa rallied another 4.5% after the Supreme Court ordered lifting of Karnataka iron ore export ban from April 20.

However, Sun Pharma, Ranbaxy, Kotak Mahindra Bank, HDFC Bank, Axis Bank, Infosys and ITC were witnessing selling pressure.

At 9:18 hours IST, the 30-share BSE Sensex was trading at 19,742, up 55 points and the 50-share NSE Nifty rose 12 points to 5,922.

The Nifty April futures were trading at 16 points premium. The CNX Midcap went up 26 points to 8,332. About 684 shares advanced as against 217 shares declined on National Stock Exchange.