Markets fluctuate on caution ahead of FDI vote

IT, FMCG lead declines while autos gained on BSE

Indian shares fluctuated after flat opening session on caution ahead of key FDI vote in Rajya Sabha later today that will decide the fate of  economic reforms in Asia's third-biggest economy.

At 10:10AM, the Bombay Stock Exchange's Sensex index rose 13 points to 19,500 while the National Stock Exchnage's Nifty-50 index gained 2 points and traded at 5,933.

Markets gained yesterday with Nifty rebounding to 5,900 levels after Mayawati-led Bahujan Samaj Party (BSP) said it would support foreign direct investment in supermarkets in a vote on Friday in the Rajya Sabha. The other key Samajwadi Party is likely to abstain from voting today paving way for FDI in India.

Global risk appetite remained firm as fewer Americans filed applications for unemployment benefits and  amid hopes of resolution in US budget talks.

Asian shares traded at 16-month high with Shanghai Composite gaining 1% to 2,054,Hang Seng up 0.2% to 22,289 and Straits Times rose 1% to 3,107, Nikkei rose 0.2% to 9,564 while KOSPI Composite was up 0.5% to 1,960.

The MSCI Asia Pacific index outside Japan rose 0.56% to 884 in morning trades.

Back home, auto, capital goods, power indexes rose while technology, fats moving consumer goods sector led declines on BSE.

Among key Sensex stocks, Hindustan Unilever, Sterlite Industries, Infosys fell nearly 1% while Maruti Suzuki, Tata Motors, Mahindra & Mahindra gained 1-3% in auto space, State Bank of India rose 0.4% and Reliance Industries gained 0.3% on the BSE.

Among other notable movers, Heaxware Technologies is trading lower by 3% at Rs 104, extending its previous day’s 3% fall, after the company revised its revenue guidance downwards for the current quarter and for the year ending December 31, 2012

The BSE mid-cap and small-cap indices rose by nearly 0.5%.

The overall breadth is strong as 1,225 stocks have declined while 760 stocks advanced on the BSE.