Markets turn green amid choppy session

Subsequent to a flat-to-negative opening, Indian equity markets rebounded in positive territory and currently trading marginally higher amid alternate bouts of buying-selling. The 30-share BSE Sensex rose 8.68 points, while 50-share NSE Nifty moved up 4.20. Investors were waiting for some developments in the euro zone ahead of Group of 20 nations' meeting over the weekend, where Europe and the United States will be pushed to tackle their debt woes. Domestically, any major reform in the winter session of parliament starting later in November, can give major boost to the market. In currency markets, after opening lower, Indian rupee rose against the American dollar on sustained dollar selling by exporters. On sectoral front, key stocks from oil, FMCG were trading in red, while consumer durables stocks were in demand, due to impressive results posted by Titan Industries. Automobile stocks were moving higher, as Tata Motors reported stellar sales numbers for October, while select healthcare, power and realty stocks were also trading firm. In global markets, Asian shares were slowly picking up on Thursday amid renewed zest from China's factory sector and a rebound in South Korean exports. Back home, the market breadth favoring positive trend; there were 1,414 shares on the gaining side against 924 shares on the losing side while 95 shares remain unchanged.

The BSE Sensex is currently trading at 18,514.06 up by 8.68 points or 0.05% after trading in a range of 18,528.44 and 18,445.78. There were 21 stocks advancing against 9 declines and one remains unchanged on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.68% and Small cap index was up by 0.58%.

The top gaining sectoral indices on the BSE were, CD up by 4.27%, Auto up by 1.48%, Realty up by 0.99%, Power up by 0.82% and HC up by 0.80%. While, FMCG down by 0.82% and Oil and Gas down by 0.65% were the only losers on the index.

The top gainers on the Sensex were Tata Motors up by 3.48%, Wipro up by 3.42%, Bharti Airtel up by 2.42%, Cipla up by 1.98% and Maruti Suzuki up by 1.78%.

On the flip side, HUL was down by 2.24%, ONGC was down by 1.10%, ITC was down by 0.99%, Jindal Steel was down by 0.49% and Infosys was down by 0.48% were the top losers on the Sensex.

 Meanwhile, staging a turnaround in industrial growth, the growth in eight core sectors, which occupies 37.9% of weightage in the overall Index of Industrial Production (IIP), registered a seven-month high at 5.1% in September, faster than the upwardly revised 2.3% in August and 2.5% in the September month of the previous fiscal, mainly on account of low-base advantage and rapid expansion in coal, cement and petroleum refinery products. 

Before this, it was back in only February 2012 that these industries grew at a higher pace, of 6.9%. During April-September 2012-13, the cumulative growth rate of the Core industries was 3.2% as against their growth at 5.0% during the corresponding period in 2011-12.

Coal production, with a weight of 4.38% in the index, registered a growth of 2.14% in September 2012 compared to contraction of 18.2% in the same month last year. Coal production recorded a growth of 8.3% during April-September 2012-13 compared to contraction of 4.8% during the same period of 2011-12. A low base effect and higher dispatches due to fuel supply pacts by Coal India with power companies could be considered as a reason enough for the growth of this sector.

Further, Petroleum refinery production (weight: 5.94%) grew by 11.4% for the month under review, as compared to growth figure of 4.3% in the same month last year. While In cumulative terms, Petroleum refinery production registered a growth of 5.4% during April-September 2012-13 compared to its 4.6% growth during the same period of 2011-12.

Additionally, Cement production, which occupies weight of 2.41% in the index, registered a growth of 13.4% in September 2012 against its 2.2% growth in the same month last year. The cumulative growth of Cement Production was 7.4% during April-September 2012-13 compared to its 3.8% growth during the same period of 2011-12. Moreover, Fertiliser production, with a weight of 5.22%, registered a growth of 5.7% for the month under review compared to negative growth of 2.1% in corresponding period of the last year.

On the flip side, Natural Gas and Crude Oil, which occupies 1.71% and 5.22% weightage in the index, have been the worst performing sectors with production contracting by 14.8% and 1.7% in September, respectively compared to contraction of 6.4% and a marginal growth figure of 0.1% respectively in September 2011.

Furthermore, steel production along with Electricity generation, with weight of 6.68% and 10.32%, registered lower growth rate of 2.0% and 3.7% in the month under review as against 7.5% and 8.8% growth in September 2011.

The S&P CNX Nifty is currently trading at 5,623.90, up by 4.20 points or 0.07% after trading in a range of 5,627.85 and 5,601.95. There were 35 stocks advancing against 15 declines on the index.

The top gainers of the Nifty were Tata Motors up by 3.55%, Wipro up by 3.45%, Power Grid up by 2.50%, RInfra up by 2.41% and JP Associates up by 2.29%.

On the flip side, HUL down by 2.18%, ONGC down by 1.45%, ITC down by 1.01%, Ambuja Cement down by 0.94%, and Jindal Steel down by 0.93%, were the major losers on the index.

Asian equity indices were trading mixed; Kospi Composite was  down by 0.71%, Jakarta Composite down  by 0.69%, Straits Times was down  by 0.36%, and KLSE Composite down by 0.10% while Hang Seng was up by 0.72%, Shanghai Composite was up by 1.73%, Taiwan Weighted up by 0.19% and Nikkei 225 up by 0.21% were the gainers.