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.