You may also want to consider posting the explain plan and the statistics ... output of db2exfmt with the -g option may do good ...
Having a quick look at your query (at 2 am ;-) ) , these are my observations :
a) You have a couple of outer joins ... So, no wonder you get tablescans
b) I think it may be a good idea to 'apply' some of your conditions in the where clause before you do the left outer join (or may be, db2 already does this optimization)
For your questions :
1) previous paragraph answers this
2) no, given that you have too many columns in the group by.
3) the sorted table is being read
Nageswaran, in my opinion, trying to make your NSLOOP joins HSJOINS or vice-versa is not advisable ... Many people have an opinion that Nested-Loop joins are bad, which I generally differ with .. They get really bad if the join columns are not indexed ... To me HSJOINs on base tables mean that there is a scope for index improvements ...
HTH
Sathyaram