Sensex, Nifty continue to trade in red

After making a muted start, Indian equities continued lackadaisical trade below neutral line in the late morning session. On the global front, most of the Asian equity indices were trading in the red on report of contraction in US business activity. Some of the indices are trading lower by over half a percent in early trade. However, the Chinese market is trading in green as the PMI came at 50.2, first time above 50 since July. Besides, the Bank of Japan has increased its asset-purchase program by 11 trillion yen ($138 billion) to 66 trillion yen to bolster growth through lower borrowing costs. Back home, traders were seen piling up position in, CD, Auto and Realty sector while selling was witnessed in FMCG, Oil and Gas and Metal sector. Tata Motors, Bajaj Auto, Maruti Suzuki, Hero MotoCorp and Exide Industries from Auto pack were seen trading in green. Titan Industries, Videocon Industries, Rajesh Exports, Gitanjali Gems, TTK Prestige, Blue Star and Whirlpool from CD pack were seen trading firm in green. FMCG majors - ITC, Hindustan Unilever, Colgate-Palmolive (India), and Godrej Consumer Products were capping the markets’ gains. Oil and Gas majors RIL, ONGC, Gail India, Cairn India and Petronet LNG too were pressurizing the markets. 

In the scrip specific development, Titan Industries jumped on reporting 21.35% rise in Q2 net profit. IDBI Bank rose on receiving nod to merge Stock Holding Corporation of India with itself. Power Grid gained on reporting 59% jump in Q2 net profit. Tata Global Beverages surged on reporting stellar Q2 numbers. Sanghvi Forging edged higher on commencing commercial production of new die forging plant. TVS Motor soared on reporting 4% growth in October sales. Maruti Suzuki jumped on reporting 86% jump in September 2012 total sales. The NSE Nifty and BSE Sensex were managing to hold their psychological 5,600 and 18400 levels. The market breadth on BSE was positive, in the ratio of 1205:794.

The BSE Sensex is currently trading at 18459.61 down by 45.77 points or 0.25% after trading in a range of 18512.34 and 18445.78. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.38% and Small cap index was up by 0.46%.

The top gaining sectoral indices on the BSE were, CD up by 3.94%, Auto up by 1.13%, Realty up by 0.65%, Power up by 0.48% and HC up by 0.46%. While, FMCG down by 1.28%, Oil and Gas down by 0.89% and Metal down by 0.19% were the only losers on the index.

The top gainers on the Sensex were Wipro up by 3.22%, Tata Motor up by 2.98%, Cipla up by 1.32%, Maruti Suzuki up by 1.22% and Hero MotoCorp up by 1.04%.

On the flip side, HUL was down by 2.75%, ITC was down by 1.45%, RIL was down by 1.17%, Hindalco Inds was down by 1.07% and Jindal Steel was down by 0.93% were the top losers on the Sensex.

 Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) is scheduled to meet later today and is likely to decide on lifting ban on export of milk products, especially whole milk powder, dairy whitener and infant milk foods, amidst of surplus availability of milk powder in the country.

The government, to boost the domestic supply, had imposed ban on export of all kinds of milk products,  skimmed milk powder (SMP), whole milk powder (WMP), dairy whitener, infant milk foods, casein and casein products, in February 2011. However, the ban was withdrawn only in the case of casein in April and SMP in June of this year. The removal of the export ban on whole milk powder (WMP), dairy whitener, infant milk foods and other milk products was proposed by the Agriculture Ministry with immediate effect in view of flush season for milk that started this month, improved supply of milk and milk powder in the country.

At present, there is a stock of 1.12 lakh tonnes of milk powder in the country and the inflation in milk on the Consumer Price Indice (CPI) stood at 11.43 percent last month. As much as 300 lakh kilos of milk per day were procured in the country in September, while sales were to the tune of only 260 lakh kilos per day. Due to the better global prices, the ministry senses that there may be scope for domestic dairy industry to export milk products without any incentives at present. 

The S&P CNX Nifty is currently trading at 5,607.40, down by 12.30 points or 0.22% after trading in a range of 5,621.35 and 5,601.95. There were 24 stocks advancing against 26 declines on the index.

The top gainers of the Nifty were Wipro up by 3.38%, Tata Motors up by 3.10%, Power Grid up by 2.37%, RInfra up by 1.95% and Cipla up by 1.47%.

On the flip side, HUL down by 2.67%, ITC down by 1.43%, Jindal Steel down by 1.25%, RIL down by 1.19%, and Hindalco down by 1.16%, were the major losers on the index.

Asian equity indices were trading mostly in the red; Kospi Composite was  down by 0.75%,Taiwan Weighted down by 0.12%, Jakarta Composite down  by 0.69%, Straits Times was down  by 0.33%, and KLSE Composite down by 0.09% while Hang Seng was up by 0.45%, Shanghai Composite was up by 1.77% and Nikkei 225 up by 0.14% were the gainers.