The frontline Indian stock indices have retreated from the session's peak in mid-morning trade, with the NSE Nifty dipping under the 5,300 mark after crossing the milestone in early minutes of trade. The BSE Sensex is hovering around 17,450 after surpassing 17,500 earlier. The broader market indices are yet again out-performing the main indices marginally. As a result, the market breadth is favourable for the bulls. The INDIA VIX is down ~3%.

Consumer Durables, Realty, Banking, Pharma and PSU indices are among the notable gainers so far in the session. On the other hand, IT and FMCG indices are the biggest laggards. The remaining sectoral indices are marginally positive.

At 10:26am (IST), the BSE Sensex was at 17,485, up 86 points over the previous close. It had earlier touched a day’s high of 17,526 and a day’s low of 17,457. It opened at 17,457.

NSE Nifty was quoting at 5,303, up 24 points over the previous close. It earlier touched a day’s high of 5,317 and a day’s low of 5,294. It opened at 5,298.

Wipro, DLF, Tata Power, Tata Motors, Bharti Airtel,ICICI Bank, HDFC, ONGC, L&T,Sterlite Inds,SBI, HDFC Bank,M&M are among the top gainers in Sensex and Nifty.

Infosys, TCS, Coal India, Cairn, ITC, ACC are among the notable losers in Sensex and Nifty.

The BSE Small-Cap index and BSE Mid-Cap index was trading up at 1%.

HC, Teck, Power, PSU, Teck, Pharma, Bankex, Auto, Metal, Oil and Gas .Realty, Capital Goods, Consumer Durables,IT indices were the leading gainers.

IT and FMCG indices are the losers.

Asian stock markets are trading mostly higher as weak manufacturing data out of the US has raised expectations of further monetary easing by the Federal Reserve.

Investors are also looking forward to the policy meeting of the ECB and Bank of England later this week.

The MSCI Asia Pacific Index rose 0.6% to 118.50 as of 11:00 a.m. in Tokyo. Almost four stocks rose for each that fell. The Asian index last week posted its biggest weekly gain since January.

Financial companies accounted for the largest gains on the Asian regional benchmark.
China’s non-manufacturing industries expanded at a faster pace in June on the back of improvement in the property market and new orders, an official survey showed today.

The purchasing managers’ index (PMI) rose to a three-month high of 56.7 in June from 55.2 in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing today.

The Reserve Bank of Australia on Tuesday left its policy interest rates unchanged at 3.5%, taking a pause after slashing them by 0.75% in the past two months.

The Australian dollar gave up some of its gains after the decision. The S&P/ASX 200 index was slightly down.
Equities across the globe have risen smartly of late. The Nifty has crossed 5300 after a good start. Asian markets are holding firm despite a mixed session on Wall Street, with investors hoping for fresh monetary easing from the Federal Reserve. European stocks pared gains on disappointing US manufacturing data. The ISM manufacturing PMI shrank for the first time in three years.

Measures announced by the European leaders at the recently concluded EU summit have managed to temper some of the concerns surrounding the eurozone debt crisis. However, the latest statistics show that economic growth remains under threat across the world. Unemployment is pretty elevated in the developed world. Recession-like conditions in the Developed Markets is hurting the Emerging Markets.

Policymakers are running out of options to shore up growth due to lack of elbow room on the fiscal front. Even the central banks look to have exhausted most of their ammo. All eyes will be on Thursday’s meeting of the ECB and Bank of England apart from Friday’s US jobs report. IIP, inflation, RBI policy meeting, earnings, Rupee and monsoon will drive the sentiment for the Indian markets this month.

Trend in FII flows: The FIIs were net buyers of Rs. 5.91bn in the cash segment on Monday while the domestic institutional investors (DIIs) were net sellers of Rs. 4.47bn, as per the provisional figures released by the NSE.

The FIIs were net buyers of Rs. 1.93bn in the F&O segment on Monday, according to the provisional NSE data.