Fatigued benchmarks take-it-easy this Monday; snap result heavy day on a flat note

Monday’s trading session turned out to be a day of consolidation as the Indian frontline equity indices appeared to be wandering on a directionless trajectory. The benchmarks managed to snap the session on a positive note but only with trivial gains as the optimism that emerged in mid noon trades petered out completely by the end. Firm trend was evident in the markets across the globe as some worries over Euro-zone’s debt crisis waned after Greek parliament voted to approve a package of harsh austerity measures to secure a second EU/IMF bailout and avoid bankruptcy. Though, the reports that Greek Parliament passed an austerity bill to cut government spending prevented the markets from drifting deeper into the red, but lack of significant upside triggers also made it difficult for the frontline indices to move higher. Hefty buying in Metal and rate sensitive Auto counters helped the markets stay in green while profit booking in Capital Goods and TECk stocks limited the upside chances for the bourses. The psychological 5,350 (Nifty) and 17,650 (Sensex) levels proved as strong supports because the frontline indices trended upwards after hitting those levels in early afternoon trades. Index heavyweight Reliance Industries too climbed over half a percent and gave the much needed support to the markets. On the earnings front, real estate major DLF, Tata Power along with Suzlon Energy, SAIL  and SBI got pounded heavily after announcing third quarter results which were below street’s expectations while Coal India on the other hand settled on a strong note as its quarterly performance got commended by investors. On the global front, Asian markets exhibited positive trends as Greek optimism overshadowed the worse than expected Japanese GDP growth numbers. The European stock counterparts too traded in the green territory after the Greek parliament approved a key austerity package over the weekend.

Earlier on the Dalal Street, the benchmark got off to a quiet opening as investors largely remained influenced by the cautious sentiments prevailing in Asian markets. After the flat opening, the frontline indices continued to see-saw around the neutral line in a very tight band through the day’s trade as the bourses remained in the consolidation mode. Hefty bouts of selling pressure emerged in late morning trades, which dragged the key gauges to the lowest point in the day. However, some bottom fishing helped the gauges to cut losses and climb back into the green terrain. But profit booking in dying hours ensured that the benchmarks settle on a dull note. The NSE’s 50-share broadly followed index Nifty, settled with single digit gains below the crucial 5,400 support level while Bombay Stock Exchange’s Sensitive Index or Sensex added twenty five points and ended below the psychological 17,800 mark. Moreover, the broader markets showed some resilience and finished the session on a positive note, outperforming their larger peers. On the BSE sectoral space, Metal counter remained the top gainer in the space with gains of over a percent followed by the Auto sector which too ended with similar gains. The markets consolidated on strong volumes of over Rs 1.54 lakh core while the turnover for NSE F&O segment remained on the lower side as compared to that on Friday at over Rs 1.13 lakh crore. The market breadth was positive as there were 1,496 shares on the gaining side against 1,361 shares on the losing side while 94 shares remained unchanged.

Finally, the BSE Sensex gained 24.15 points or 0.14% to settle at 17,772.84, while the S&P CNX Nifty rose by 8.60 points or 0.16% to close at 5,390.20.

The BSE Sensex touched a high and a low of 17,849.64 and 17,665.89 respectively. The BSE Mid cap and Small cap indices up by 0.46% and 0.18% respectively.

The major gainers on the Sensex were Hero MotoCorp up 2.41%, Tata Steel up 2.13%, Sun Pharma up 2.08%, Hindalco Industries up 1.90% and M&M up 1.79%. While, Wipro down 2.57%, Tata Power down 2.48%, SBI down 2.00%, Cipla down 1.88% and L&T down 1.66%, were the major losers on the index.

The top gainers on the BSE sectoral space were Metal up 1.01%, Auto up 0.84%, Consumer Durables (CD) up 0.61%, Bankex up 0.36% and Health Care up 0.35%, while Capital Goods (CG) down 0.75%, TECk down 0.34%, IT down 0.26% and FMCG down 0.05% were top losers on the sectoral space.

Meanwhile, exports of Indian handicrafts grew by 24% to $178 million in January 2012 as compared to $143 million for the same month last year. Export Promotion Council for Handicrafts (EPCH) has stated that exports have done well in the past few months and exports for the current fiscal would reach $2.7 billion as compared to $2.3 billion in the last fiscal.

According to EPCH Executive Director Rakesh Kumar, handicraft exports are witnessing an upswing due to improvement in demand from the United States and from the newer markets of Latin America and Africa. However, demand continues to be sluggish in the European markets due to slow economic growth.

The handicrafts sector employs one million people. Moradabad, Jaipur, Saharanpur and Jodhpur are the major handicraft hubs in the country catering to global markets. The US and European Union together account for 70% of the country's handicraft exports. During April-January this fiscal, handicrafts exports went up by about 19% to $1.8 billion from $1.5 billion in the same period of last fiscal.

The S&P CNX Nifty touched a high and low of 5,421.05 and 5,351.40 respectively.

The top gainers on the Nifty were Reliance Infra up 5.18%, Sesa Goa up 4.47%, Kotak Bank up 4.08%, Tata Steel up 2.16% and Hero MotoCorp up 2.00%.

On the flip side, SAIL down 3.27%, Wipro down 2.86%, Tata Power down 2.71%, Cipla down 2.47% and SBI down 2.16% were the top losers on the index.

The European markets were trading in red as France's CAC 40 up 0.55%, Britain’s FTSE 100 up 0.99% and Germany's DAX up by 0.60%.

All the Asian equity indices barring Shanghai Composite rose on Monday after Greece’s parliament approved a new set of austerity measures that were required by international lenders in exchange for an emergency bailout. The news that Greek lawmakers approved a package of austerity measures, which international backers had demanded before signing off on euro130 billion ($176.6 billion) worth of fresh aid, triggered fresh gains in Asia. The vote came amid violent protests in Athens against the latest round of deep spending cuts and public-sector job layoffs.

Chinese equity index Shanghai Composite ended flat as the country’s real estate companies were on the back foot after reports that the city of Wuhu in Anhui province had rolled back housing subsidies announced just last week. However, comments by Premier Wen Jiabao in state media that China will start to fine-tune economic policies in the first quarter probably helped financials on the day.