Benchmarks remain in negative territory; RIL sheds over 3%

Indian equity benchmarks have slipped into red and were moving within a tight range, lacking triggers from global markets and weak results from Reliance Industries was forcing investors to be on sidelines. Investors remained cautious ahead of crucial monetary policy review by the central bank. Meanwhile, heavyweight Reliance Industries was down more than 3% after posting dismal performance in the quarter ended December 2011. On sectoral front FMCG, technology and power stocks played a supportive role today, while metal, oil and capital goods stocks were dragging the market down. On the global front, few of the trading Asian markets were in green. Back home, the market breadth was favoring the positive trend; there were 1362 shares on the gaining side against 1024 shares on the losing side while 111 shares remained unchanged.

The BSE Sensex is currently trading at 16,719.33, down by 19.68 points or 0.12%. The index has touched a high and a low of 16,766.93 and 16,659.32 respectively.There were 19 stocks advancing against 11 declining ones on the index.

The broader indices sustained their positive momentum; the BSE Mid cap and Small cap indices were trading up by 0.24% and 0.30% respectively.

The top gaining sectoral indices on the BSE were, TECk up by 0.81%, IT up by 0.80%, FMCG up by 0.77%, Bankex up by 0.76% and Power up by 0.59%. While, Metal down by 2.09%, Oil & Gas down by 2.06%, Capital Goods (CG) down by 1.13%, Auto down by 0.27% and Realty down by 0.15% were the top losers on the index.

The top gainers on the Sensex were Cipla up by 2.37%, ICICI Bank up by 1.94%, Tata Power up by 1.72%, ITC up by 1.29% and HDFC up by 1.12%.

On the flip side, Sterlite Industries down by 3.95%, RIL was down by 3.29%, Hindalco Industries was down by 3.07%, Hero MotoCorp down by 3.01% and Coal India down by 2.63% were the top losers on the Sensex.

Meanwhile, decline in the prices of vital food items have brought down the all India Consumer Price Index (CPI) for agricultural labour (AL) and rural labour (RL) by 2 and 3 points respectively for the month of December 2011 as compared to November 2011. As per the data released by the Ministry of Labour & Employment, the index dropped from 621 to 618 for agricultural labourers and from 621 to 619 for rural labourers (Base: 1986-87=100). 

The fall and rise in index varied from state to state. In case of agricultural labourers, it recorded a decrease between 1 to 13 points in 18 states and an increase of 3 and 8 points in 2 states. Orissa registered the maximum decrease of 13 points for both AL and RL largely due to decrease in the prices of rice, ragi, onion and vegetables & fruits. Tamil Nadu registered the highest increase of 8 and 9 points mainly due to increase in the prices of rice, milk, pan leaf, firewood and bus fare.  

Further, in case of rural labourers, it recorded a decrease between 1 to 13 points in 15 states and an increase of 1 and 9 points in 2 states. It, however, remained stationary in 3 states. Maharashtra topped the inflation list for both agricultural and rural labourers with 689 and 681 points respectively, whereas Himachal Pradesh with the index level of 509 and 531 points was at the bottom.

Food index for rural labourers was down 1.30% in December on a monthly basis. In the case of agricultural labourers, food prices went down by 1.31% on a monthly basis. However, other items became dearer in December as compared to November.

Point to point rate of inflation based on the CPI-AL and CPI-RL decreased from 8.95% and 9.14% in November, 2011 to 6.37% and 6.72% respectively in December, 2011. Inflation based on food index is 2.37% in December, 2011 for both the series.

The S&P CNX Nifty is currently trading at 5,041.10, higher by 7.50 points or 0.15%.  The index has touched a high and a low of 5,059.55 and 5,021.35 so far. There were 31 stocks advancing against 19 declining ones on the index.

The top gainers of the Nifty were ICICI Bank up by 1.93%, Cipla up by 1.72%, PNB up by 1.72%, Tata Power up by 1.71% and Grasim up by 1.56%.

On the flip side, Sterlite Industries down by 4.12%, Hindalco Industries down by 3.34%, RIL down by 3.22%, Hero MotoCorp down by 3.11% and Coal India down by 3.03% were the major losers on the index.

In Asia, most of the markets are closed today. Japanese Nikkei up by 0.06% as US home sales rose to the highest level in almost a year, overlooking Greece’s struggle to reach a deal with creditors to ease its debt burden.