Sensex pare gains; markets awaiting inflation data for clues on RBI’s rate action

Benchmarks pared early gains after weak results from a few companies, though the drop was restricted by investor’s optimism as Greece edged closer to securing a bailout fund. However, investors were awaiting inflation data due on Tuesday for clues on the Reserve Bank of India's rate action. On sectoral front, consumer durables, healthcare, auto and oil sectors were trading in positive whereas, rest all were in negative territory. On global front, Asian shares and the euro gained modestly on Monday, relieved after Greece came a step closer to securing a much-needed bailout fund and avoiding a messy default. Back home, the market breadth favoring the positive trend; there were 1,259 shares on the gaining side against 1,235 shares on the losing side while 99 shares remained unchanged.

The BSE Sensex is currently trading at 17,721.18, down by 27.51 points or 0.15%. The index has touched a high and a low of 17,807.61 and 17,692.47 respectively. There were 11 stocks advancing against 19 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.22% and 0.30% respectively.

The top gaining sectoral indices on the BSE were CD up by 1.01%, Oil and Gas up by 0.77%, Health Care up by 0.56% and Auto up by 0.29%. While, Realty down by 1.33%, CG down by 1.15%, IT down by 0.70%, TECk down by 0.65% and Metal down by 0.58% were the top losers on the index.

The top gainers on the Sensex were Sun Pharma up by 1.90%, Hero MotoCorp up by 1.84%, Coal India up by 1.63%, Mahindra & Mahindra up by 1.52% and HDFC Bank up by 1.40%.

On the flip side, Tata Power down by 3.02%, DLF down by 2.93%, Wipro down by 2.43%, SBI down by 1.94% and L&T down by 1.77% were the top losers on the Sensex.

Meanwhile, India’s import bill of sensitive items stood at R 67,264 crore for the period April-November 2011 registering an increase of 42.3%, as compared to the corresponding period of last year. Sensitive items constituted 4.7% of the import bill as compared to 4.4% last year. Sensitive items are those which impact farmers and small-scale industries and an increase in their imports can hurt these sectors.

As per the data released by the Ministry of Commerce, gross import of all commodities during the period April-November 2011 was Rs 14,35,305 crore as compared to Rs 10,85,781 crore during the same period of last year. Imports of edible oil increased from Rs 18,890.3 crore last year to Rs 31,066.5 crore for the corresponding period of this year. The imports of both crude oil as well as refined oil went up by 64.6% and 63.7% respectively. The increase in edible oil import was mainly due to substantial increase in import of crude palm oil and its fractions.

Imports of all other items like edible oil, fruits and vegetables (including nuts), pulses, automobiles, rubber, products of SSI, cotton & silk, spices, alcoholic beverages, marble & granite and tea & coffee have increased during the period under reference. Imports of alcoholic beverages increased by 44.7% and that of spices went up by 66.9%. Imports of products of small scale industries such as umbrellas, locks, toys and glassware went up by 43% for the said period.

Automobile imports jumped by 81% in April- November 2011 to Rs 2,575.14 crore from Rs 1,422.67 crore in the same period last year. However, imports of food grain contracted by 94.5% and of milk and its products by 18.5%. Imports of sensitive items from Indonesia, China, Malaysia, Argentina, Germany, Korea, Ukraine, United States of America, Canada, Myanmar, Japan, Thailand, United Kingdom, Cote D’ Ivoire, Guinea Bissau, Ghana, Benin etc. have gone up while those from Brazil, Australia etc. have gone down.

The S&P CNX Nifty is currently trading at 5,371.05, lower by 10.55 points or 0.20%. The index has touched a high and a low of 5,392.95 and 5,359.45 respectively. There were 21 stocks advancing against 29 declines on the index.

The top gainers of the Nifty were Reliance Infra up by 2.07%, Hero MotoCorp up by 1.88%, Sun Pharma up by 1.80%, Kotak Bank up by 1.74 and Coal India up by 1.61%. On the flip side, DLF down by 2.94%, Tata Power down by 2.93%, Wipro down by 2.75%, Cipla down by 2.00% and SBI down by 1.86% were the major losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite gained 0.10%, Hang Seng surged 0.48%, Jakarta Composite added up by 0.52%, Nikkei 225 spurted 0.52%, Straits Times rose 0.20%, Seoul Composite accumulated 0.73% and Taiwan Weighted was up by 0.64%.