Benchmarks trade flat aimed mixed Asian counters

Continuing their yesterday's terrific rally, the Indian equity markets have made a positive opening after Moody's upgraded its rating of the country's short-term foreign currency bank deposits to investment grade amid hopes of a rate cut by the RBI. But, immediately the benchmarks turned flat following mixed Asian cues. The US markets ended 0.5-1 percent higher on Tuesday led by materials stocks; even outlook from Alcoa, Ford and General Motors was quite positive. Even in the Europe, Fitch said it did not expect to cut France's AAA credit rating this year. Back home, the domestic bourses were consolidating for getting further direction on either side. Meanwhile, buyers stepped into retail stocks after DIPP approved single brand retail press note yesterday. According to press note, 100% FDI is allowed in single brand retail via government route. Pantaloon Retail, Shoppers Stock, Koutons, Trent, Provogue and Arvind shot up 3-12 percent. Moreover, aviation stocks gained momentum on hopes that FDI proposal may get passed soon as Home Ministry said all ministries were supportive of Aviation FDI proposal. Kingfisher Airlines, Spicejet and Jet Airways rose 4-6 percent. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,130 shares on the gaining side against 505 shares on the losing side while 50 shares remained unchanged.

The BSE Sensex opened at 16,222.37; about 57 points higher compared to its previous closing of 16,165.09, and has touched a low of 16,145.19 while, high remain its opening.

The index is currently trading at 16,170.21, up by 5.12 points or 0.03%. There were 16 stocks advancing against 14 declines on the index.

The overall market breadth has made a strong start with 67.06% stocks advancing against 29.97% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.63% and 0.70% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.08%, CD up by 0.88%, Metal up by 0.81%, IT up by 0.62% and TECk up by 0.36%. While, CG down by 0.71%, FMCG down by 0.28%, PSU down by 0.18%, Power down by 0.17% and Oil and Gas down by 0.15% were the top losers on the index.

The top gainers on the Sensex were Hindalco up by 2.68%, Sterlite Industries up by 1.83%, Hero MotoCorp up by 1.62%, DLF up by 1.30% and Bajaj Auto up by 0.80%.

On the flip side, BHEL was down by 1.55%, Bharti Airtel was down by 1.22%, L&T was down by 0.91%, M&M was down by 0.86% and ITC was down by 0.51% were the top losers on the Sensex.

Meanwhile, Indian passenger car sales rose by 8.49% to 159,325 units in December 2011 compared to 146,856 units in the same month in 2010, rise in the second successive month as the industry continued to rebound from the decline seen in sales in late 2011.

As per the data released by the Society of Indian Automobile Manufacturers (SIAM), the apex Industry body representing 46 leading vehicle and vehicular engine manufacturers in India, motorcycle sales in last month grew by 7.27% to 807,829 units from 753,102 units in the same month previous year. Total two-wheeler sales in December 2011 increased 8.52% to 10,91,982 units from 10,06,289 units in the same period of the previous year.

Total sales of commercial vehicles jumped 14.5% to 72,192 units from 63,048 units. Total sales of vehicles across categories registered a growth of 8.45% to 14,13,709 units in December 2011 against 13,03,516 units in the same month of 2010.

The largest car maker of the country - Maruti Suzuki (India) has sold a total of 92,161 vehicles in the month of December 2011, down by 7.10% as compared to 99,225 vehicles in December 2010. While other players such as Tata Motors’ total sales of commercial and passenger vehicles in December 2011 were 82,278 vehicles, higher by 22%. Utility vehicle major Mahindra & Mahindra reported a rise of 26% in its auto sales numbers, which stood at 42,761 units during December 2011.

India, Asia’s third-largest economy is a key growth market for global automakers that have seen demand hit by global economic turmoil. Macroeconomic indicators such as high interest rates, surging inflation and slowing economic growth has in some way affected the sales. Moreover, rising prices of fuel and materials such as steel, aluminium, plastics and rubber have increased costs and dented demand.

The apex industry body has already cut its cars growth forecast twice this year, slashing it to 2-4% in October from a revised forecast of 10-12%. The industry body had initially forecast growth of 16-18% in April.

The S&P CNX Nifty opened at 4,863.15; about 14 points higher compared to its previous closing of 4,849.55, and has touched a high and a low of 4,864.05 and 4,841.60 respectively.

The index is currently trading at 4,850.75, higher by 1.20points or 0.02%. There were 24 stocks advancing against 26 declines on the index.

The top gainers of the Nifty were Hindalco up by 2.56%, Sesa Goa up by 1.94%, Sterlite Industries up by 1.93%, BPCL up by 1.89% and Hero MotoCorp up by 1.66%.

On the flip side, Cairn down by 1.98%, BHEL down by 1.53%, Bharti Airtel down by 1.27%, Ranbaxy down by 1.01% and L&T down by 0.94% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Hang Seng was up 16.57 points or 0.09% to 19,020.85, Nikkei 225 was up 7.63 points or 0.09% to 8,429.89, Straits Times was up 9.45 points or 0.35% to 2,729.28 and Taiwan Weighted was up by 22.89 points or 0.32% to 7,201.76.

On the flip side, Shanghai Composite was down 9.59 points or 0.42% to 2,276.15, Jakarta Composite was down 17.49 points or 0.44% to 3,921.36 and Seoul Composite was down by 3.91 points or 0.21% to 1,849.31.