Sensex, Nifty volatile; Hero Moto, Bajaj Auto lead gainers

Moneycontrol Bureau12:58 pm Market Update: Equity benchmarks continued to be flat. The Sensex fell 33.70 points to 25834.79 and the Nifty declined 2.45 points to 7854.10.About 1430 shares have advanced, 962 shares declined, and 169 shares are unchanged on the BSE.12:45 pm Masala Bonds: Some of India's most indebted infrastructure and steel groups are considering so-called masala bonds to diversify their funding options as local banks tighten lending, investment banking sources with direct knowledge of the situation said.

The government last month clarified how income from the rupee-denominated offshore bonds would be taxed, removing one uncertainty for firms at a time when India's banks - usually the first port of call for corporates - are reluctant to lend to sectors facing weak demand and heavy debt.

The global rupee bonds would be used to refinance costly loans or raise capital for new projects with little currency risk. Indian companies had previously issued bonds abroad, but these were in dollars and other currency.12:30 pm Buzzing: Shares of SeQuent Scientific rallied 6.6 percent intraday on acquisition of Turkey-based company by its subsidiary.

"Subsidiary Alivira Animal Health will acquire Topkim llac Premiks San ve Tic AS of Turkey. Acquisition will be made through Provet Veterinary Products, a subsidiary of Alivira," the company said in its filing.

12:15 pm Rupee outlook: Ray Farris, director, Credit Suisse says he expects the euro-dollar falling over the next three months and believes it can see parity over the next year. On the rupee front, he expects the currency to go to levels of 67 against the dollar in the next three months and 68.50 over the next year.Also read - RBI's Rajan wants cos to go bankrupt... and that's good12:00 pm Market Check

Equity benchmarks continued to be volatile but the broader markets maintained their outperformance. Infrastructure, technology, oil and select banks stocks gained strength while FMCG, metals and HDFC twins dragged.

The 30-share BSE Sensex rose 13.73 points to 25882.22 and the 50-share NSE Nifty gained 8 points at 7864.55. The BSE Midcap index climbed half a percent and Smallcap advanced 0.7 percent.

The market breadth remained positive as about 1434 shares advanced against 859 declining shares on the BSE.

Bajaj Auto and Hero Motocorp topped buying list on Sensex, up 2-3 percent while ITC, Hindalco Industries and Vedanta dropped 2-3 percent.