Asian markets trading lower

At 9:08 am (IST), Asian markets were trading lower. Hong Kong's Hang Seng fell 1.43% or 347.62 points at 23,955.45. Japan's Nikkei shed 1.60% or 155.77 poins at 9,563.93.

Singapore's Straits Times declined 0.89% or 28.11 points at 3,132.33. South Korea's Seoul Composite slipped 1.32% or 27.97 points at 2,094.42. Taiwan's Taiwan Weighted plunged 1.92% or 170.20 points at 8,710.07. China's Shanghai Composite was up 0.27% or 8.12 points at 3,030.86.

Market likely to hit by May-end: SAIL FPO

The much-awaited Rs 8,000-crore follow-on public offer of Steel Authority of India (SAIL) is set to hit the capital market by the end of next month, a source close to the development said.

“The FPO will hit the market by May-end. This is final,” the source said on condition of anonymity.

However, attempts to contact the SAIL Chairman, Mr C S Verma, went unanswered.

The FPO of SAIL, in which the Government holds a stake of a little over 85%, has failed to meet repeated deadlines since December last year due to unfavourable market conditions and problems with merchant bankers.

The delay in SAIL’s FPO thwarted the achievement of the Government’s divestment target for the previous fiscal.

Compared to the target of Rs 40,000-crore fund generation through disinvestment in state-owned firms, the Government could only raise more than Rs 22,000 crore. It has set a target to raise Rs 40,000 crore through disinvestment in state-run firms during the current fiscal as well.

The expected date for submission of a red herring prospectus to the Securities and Exchange Board of India (SEBI) could not be ascertained, but it is likely to be filed within the first fortnight of next month, the source said.

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.