Market remains range bound; L&T’s numbers power CG

Range bound trade continues at the domestic bourses, though markets have recovered from initial slide but there is not much support that could lift the markets higher. Though, the top gainer of the last session, capital goods is keeping the spirit high led by the gains in L&T after the company beat market estimates with a 42.45 percent rise in net profit for September quarter. Health care sector too is supporting the markets from falling further, Dr Reddy's Labs moved higher by about a percent after it acquired OctoPlus for Rs.193 crore. However, the consumer durables stocks were pulling the markets lower despite making recovery attempt in the mid morning trade. PSU stocks have moved higher ahead of the chiefs of PSUs meet with the Prime Minister, they are expected to highlight interference by their administrative ministries in the meeting. There was result related reactions in the markets, companies like Lupin and Yes Bank have moved higher ahead of their numbers, while the auto major Hero Motocorp has lost traction before its numbers.

The BSE Sensex is currently trading at 18780.83, down by 12.61 points or 0.07%. There were 12 stocks advancing against 18 declines on the index.

The overall market breadth was in favour of advances with 51.99% stocks advancing against 42.88% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices were up by 0.25% and 0.35% respectively.

The top gaining sectoral indices on the BSE were, CG up by 1.27%, HC up by 0.68%, Realty up by 0.29%, PSU up by 0.25% and Bankex was up by 0.18%. On the other hand, CD down by 1.18%, IT down by 0.45%, Oil & Gas down by 0.36%, Auto down by 0.33% and TECk was down by 0.26% on the BSE.

The top gainers on the Sensex were L&T up by 1.61%, Cipla up by 0.91%, Dr Reddys up by 0.75%, SBI up by 0.65% and ICICI Bank up by 0.65%.

On the flip side, Hero MotoCorp down by 1.84%, RIL down by 0.82%, Infosys down by 0.81%, HDFC Bank down by 0.80%, M&M down by 0.63% and Tata Power down by 0.61% were the top losers on the Sensex.

Meanwhile, in a latest survey of ASSOCHAM Bizcon it was revealed that India’s economic situation is likely to improve significantly at all the three critical- macro, industry and firm levels in the coming six months. Despite the fact that as of now, domestic demand remains weak and the global markets stay uncertain. But the industry seems to feel that the slowdown has bottomed out. 

It was a comprehensive round of survey where 300 CEOs engaged in different sectors such as manufacturing, finance, real estates and IT were surveyed in the month of September. Gauging and reflecting the mood of the business and the industry, the Survey found that though the situation on the ground did not change in the last six months, prospects have improved for the next two quarters.

Majority of respondents said they expect overall economic situation would be better and their performance will also improve in the coming six months. The most optimistic outlook, however, came from the respondents, who said the state of affairs will improve between September, 2012 and February-March, 2013. At the firm level, 65 per cent of the respondents felt that the selling price will remain more or less same.

However, indicating that India Inc may face pressure to maintain their profitability, only 41.7 per cent felt that their profits are going to be pretty much at current levels in short term. On the same time concern of high cost of credit too was on forefront and 79 percent were of view that it is bound to affect their functioning adversely and they said the situation will be much better if interest rates are cut by the RBI.

The S&P CNX Nifty is currently trading at 5,712.30, down by 4.85 points or 0.08%. There were 23 stocks advancing against 27 declines on the index.

The top gainers of the Nifty were L&T up by 1.82%, Lupin up by 1.61%, Dr Reddy up by 1.17%, Siemens up by 1.01%, and IDFC up by 0.95%.

On the flip side, Hero MotoCorp down by 1.40%, Kotak Bank down by 1.22%, HCL Tech down by 0.75%, Infosys down by 0.74% and Reliance Industries down by 0.69% were the major losers on the index.

Asian markets were trading mixed, Shanghai Composite was down by 0.49% Kospi Composite fell by 0.37% and Taiwan Weighted was down by 0.36%.

On the other hand, Jakarta Composite was up by 0.07%, KLSE Composite too has gained 0.07%, Nikkei 225 was higher by 0.24% and Straits Times gained 0.22%.

Hong Kong markets are closed for a holiday today.