Markets erase some early gains on profit booking

After a firm start and a subsequent upward movement, Indian equity markets erased some early gains amid some profit bookings in front line stocks. Moreover, investors remained bit bullish amid expectations of some monetary easing by the central bank on Oct 30. In currency markets, Indian rupee depreciated against dollar on increasing month-end demand for the American currency from oil importers. On sectoral front, oil, automobile, healthcare and realty stocks were steady. Select power, metal and PSU stocks were trading higher. Information technology stocks were a bit subdued. In global markets, Asian shares were trading in red, as investors switched their focus away from signs of stable US growth, looking instead at tepid global corporate earnings and the uncertain economic outlook. Back home, the market breadth favoring positive trend; there were 1,335 shares on the gaining side against 996 shares on the losing side while 139 shares remain unchanged.

The BSE Sensex is currently trading at 18,678.54 up by 53.20 points or 0.29% after trading in a range of 18,743.41 and 18,651.35. There were 18 stocks advancing against 10 declines on the index, while two remain unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.23% and Small cap index was up by 0.40%.

The top gainers on the BSE sectoral space were, Oil & Gas up by 0.76%, CD up by 0.70%, Auto up by 0.63%, Realty up by 0.59%, and HC up by 0.52%. While, IT down by 0.10% and TECk down by 0.05% were the top losers on the sectoral space.

The top gainers on the Sensex were Wipro up by 2.26%, Hindalco up by 1.64%, Hero MotoCorp up by 1.60%, Mahindra & Mahindra up by 1.53% and Reliance up by 1.26%. On the other hand, Sterlite Industries down by 1.39%, Hindustan Unilever down by 1.11%, Infosys down by 0.52%, Maruti Suzuki down by 0.42% and Coal India down by 0.35% were the top losers on the Sensex.   

 Meanwhile, Confederation of Indian Industry (CII) and PricewaterhouseCoopers (PwC) in its ‘Entertainment and Media Outlook 2012’ report, has projected that the Indian entertainment and media (E&M) industry is likely to grow above Rs 1,75,000 crore over next five years, with a compounded annual growth rate  of 17%. The forecast takes into account the advertising and subscription revenue growth rate in the sector, while India continues to enjoy being 14th largest E&M market in the world. The Indian E&M industry has been identified as the fastest growing, followed by China-14%, Russia-12% and Brazil-11%.

The report emphasizes that the print and television will continue to be the dominant players in the advertising industry even though the share of print is expected to decline, while burgeoning internet segment has the potential to outperform print sector by 2014. It also forecasts that television to have a 43% share of total advertising in India by 2016, with respect to 41% in print, where as in 2011, the print’s share was higher at 44% compared to television at 41%. Compounded annual growth rate for print sector is expected to be 9%.

The developed markets spend between 1.2% and 1.45% of their GDP in advertising. It also noted that in India, internet access and gaming segments are fastest-growing at 57% and 33% CAGR, respectively. Whereas gaming remains small contributor to the overall industry, as the popularity of mobile and online and social media gaming continues to grow. The report also confirmed that the growth in E&M industry will also aid in creating large-scale employment and will also help in achieving India’s goal of being a knowledge-driven economy through effective media.

The S&P CNX Nifty is currently trading at 5,679.25, up by 14.95 points or 0.26% after trading in a range of 5,698.30 and 5,663.65. There were 34 stocks advancing against 15 declines on the index and one remains unchanged.

The top gainers of the Nifty were Wipro up by 2.37%, Hero MotoCorp up by 1.66%, Hindalco up by 1.60%, PNB up by 1.54% and DLF was up by 1.50%. While, HUL down by 1.10%, BPCL down by 1.02%, Bank of Baroda down by 0.91%, GAIL down by 0.62% and Infosys down by 0.51% were top losers on the index

Asian equity indices were trading mostly in the red; Taiwan Weighted down by 0.59%, Kospi Composite was down by 0.09%, Shanghai Composite was down by 0.36%, Jakarta Composite down by 0.10%, Straits Times was down by 0.55% and Hang Seng was down by 0.25% while Nikkei 225 was up by 0.01% and KLSE Composite up by 0.12% were the gainers.