Indian equities trim gains to trade in red

Indian equities pared gains to continue its weak trade below neutral line in the late afternoon session as investors started booking profits in the front line counter. Traders were seen piling up position in Consumer Durables, Realty and PSU sector while selling was witnessed in FMCG, IT and Power sector. The automobile sector shares were restricted on upside after reports showed weak buyer sentiment due to high petrol prices and interest rates, which continued to affect automobile’s June sales and it is unlikely to improve until the festival season that begins in September. Majority of sugar shares were seen trading firm in green on optimism that sugar prices may remain firm after the country’s sugar production estimate for 2012-13 was lowered by an industry body on account of lower recovery from the standing cane crop due to deficient monsoon rainfall. In the scrip specific development, Bharti Airtel and Idea Cellular from the telecom sector rallied substantially after Telecom Disputes Settlement and Appellate Tribunal (TDSAT) gave a split verdict on a challenge by mobile phone operators seeking to overturn a government order requiring them to stop offering 3G services beyond their licensed zones through mutual roaming pacts.

On the global front, the Asian markets were trading in green while the European markets were too trading in green on optimistic note. Investors were cautious after reports showed that manufacturing around the world shrank largely because of the onerous financial trouble in European Union, however, optimism got fuelled on hopes of central banks’ policy action to bolster growth. The European Central Bank (ECB) is scheduled for a policy meeting on interest rates on July 05, 2012 and is expected to cut its benchmark rate by 25 basis points from 1% to an all time low of 0.75%. On the home turf, the NSE Nifty and BSE Sensex were trading below their psychological 5,300 and 17,400 levels respectively. The market breadth on BSE was positive in the ratio of 1551:1106 while 117 scrips remained unchanged.

The BSE Sensex is currently trading at 17,384.08 down by 14.90 points or 0.09% after trading as high as 17,526.82 and as low as 17,351.50. There were 13 stocks advancing against 17 declines on the index.

The broader indices were trading on a positive note; the BSE Mid cap index advanced 0.21% while Small cap index climbed 0.46%.

On the BSE sectoral space, Consumer Durables up 2.00%, Realty up 0.72%, PSU up 0.68%, Bankex up 0.54% and Oil & Gas up 0.41% were the major gainers, while FMCG down 0.98%, IT down 0.84%, Power down 0.49%, Auto down 0.12% and TECk down 0.10% were the only laggards in the space.

Bharti Airtel up 2.82%, GAIL India up 1.72%, Hindalco Industries up 1.57%, ONGC up 1.40% and HDFC up 1.34% were the major gainers on the Sensex, while TCS down 2.08%, Jindal Steel down 1.90%, BHEL down 1.85%, HUL down 1.51% and ITC down 1.36% were the major losers in the index.

Meanwhile, in the back drop of decline in India’s exports by 4.16 %, Commerce and Industry Minister Anand Sharma, has convened a meeting of Consultative Group on Exports of Pharmaceutical Products, today to review the status of Indian pharmaceutical exports and developments in the industry in the global market. The meeting with pharmaceutical industry players will discuss the ways to enhance shipments, promote 'Brand India' in global market and also to provide research and development in the sector.

Sharma emphasized the importance of maintaining quality, safety and efficacy of Indian medicines for the promotion of Brand India Pharma in important markets and to attain a leadership position in the world in exports.

India is the third largest producer of pharma products by volume and the industry is growing at a rate of 15% -20% annually. The domestic pharmaceutical industry has marked $20 billion and is expected to touch $75 billion by the end of this decade. While, India's pharma exports were about $13 billion last year, it remained to share one fifth of generic medicines market in the world.

The S&P CNX Nifty is currently trading at 5,270.50, lower by 8.10 points or 0.15% after trading as high as 5,317.00 and as low as 5,265.95. There were 22 stocks advancing against 28 declines on the index.

The top gainers on the Nifty were Bharti Airtel up 2.69%, DLF up 2.42%, Sesa Goa up 2.19%, GAIL India up 1.97% and Hindalco Industries up 1.65%.

TCS down 2.18%, BHEL down 1.96%, ACC down 1.95%, Jindal Steel down 1.89% and HUL down 1.57% were the major losers on the index.

In the Asian space, Shanghai Composite rose 0.14%, Hang Seng soared 1.51%, Jakarta Composite surged 1.22%, KLSE Composite advanced 0.33%, Nikkei 225 climbed 0.70%, Straits Times Index ascended 0.89%, KOSPI Composite Index amassed 0.87% and Taiwan Weighted jumped 1.00%.

The European markets were trading in green with, France’s CAC 40 rose 0.30%, Germany’s DAX added 0.38% and the United Kingdom’s FTSE 100 gained 0.10%.