Benchmarks manages to hold in green

After making a flat opening with a negative bias, Indian equities are marginally trading in green in the late morning session. All the Asian equity indices were trading in the red despite the report that China’s services industries rebounded from the slowest expansion in at least 19 months, Services PMI rose to 55.5 in October from 53.7 the previous month. Back home, traders were seen piling up position in, HC, CD and FMCG sector while selling was witnessed in Power, Metal and Oil &Gas sector. Sun Pharmaceutical Industries, Dr Reddy's Laboratories, Cipla, Lupin and Glaxosmithkline Pharmaceuticals from HC pack were seen trading in green, while Titan Industries, Gitanjali Gems, TTK Prestige, Blue Star, Whirlpool of India and Bajaj Electricals from CD pack were in green. However, metal majors - Tata Steel, Hindalco Industries, Sterlite Industries (India), JSW Steel, Sesa Goa and Hindustan Zinc were capping the markets’ gains. Power majors NTPC, Power Grid Corporation of India, Tata Power, and Crompton Greaves too were pressurizing the markets.  

Meanwhile, Aarvee Denims & Exports, Ambika Cotton Mills, Maxwell Industries, Garden Silk Mills, Raymond and Bombay Dyeing & Manufacturing Company edged higher after the Ministry of Textiles stated that the government has raised the minimum support prices (MSP) for medium staple cotton from Rs 2,800 per quintal to Rs 3,600 per quintal and for long staple cotton from Rs 3,300 per quintal to Rs 3900 per quintal for cotton season 2012-13.

In the scrip specific development, Voltas rose on divesting 34% stake in VMH for Rs 58 crore. Coal India gained on plans to double production capacity in Chhattisgarh. Venus Remedies surged on reporting 28% rise in Q2 net profit. Indo Rama Synthetics soared on plan to sign MoU with Tamil Nadu Govt. BGR Energy edged higher on acquiring 100% equity stake in Sravanaa Properties. L&T   jumped as its arm bags order worth Rs 1,252 crore from DMRC.

The NSE Nifty and BSE Sensex were managing to hold their psychological 5,650 and 18700 levels. The market breadth on BSE was positive, in the ratio of 1202:953.
The BSE Sensex is currently trading at 18757.31 by 1.86 points or 0.01% after trading in a range of 18794.63 and 18737.13. There were 12 stocks advancing against 18 declines on the index.

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

The top gaining sectoral indices on the BSE were, HC up by 1.01%, CD up by 0.85%, FMCG up by 0.62% and PSU up by 0.07%. While, Power down by 0.44%, Metal down by 0.42%, Oil & Gas down by 0.30%, IT down by 0.17% and Realty down by 0.13% were the losers on the index.

The top gainers on the Sensex were Cipla up by 1.95%, Dr Reddy up by 1.86%, Tata Motors up by 1.11%, ITC up by 1.11%, and Coal India up by 0.87%.

On the flip side, Hindalco was down by 1.57%, Bajaj Auto was down by 1.20%, Tata Steel was down by 0.95%, Infosys was down by 0.66% and Bharti Airtel was down by 0.64% were the top losers on the Sensex.

Meanwhile,Prime Minister Manmohan Singh  while addressing a Congress rally has said that reform measures, including FDI in retail, will benefit the common man and create more jobs.The statement was made while accusing the opposition of spreading misinformation regarding policy initiatives taken by the government. By adding further he said we need economic reforms to create more jobs and people are being misled about recent government decisions.

However, Singh added that, if there is a need for renewal of policies, it should be definitely done for the benefit of the country. Elaborating on his defence on FDI, Singh said Congress and the government believes that FDI in retail is in the interest of farmers. Farmers should be provided with right price for their produce. Apart from this, new employment opportunities will emerge.

Referring to economic reforms initiated in 1991 when he was Finance Minister, Singh said this is not the first time that the country has brought in foreign investment. This decision is however, for the betterment of the people, to keep the farmers happy and prosperous. Though the government is committed to create a prosperous India but the people have to travel a long distance to achieve that goal. 

The S&P CNX Nifty is currently trading at 5,698.70, up by 1.00 points or 0.02% after trading in a range of 5,709.20 and 5,690.50. There were 19 stocks advancing against 31 declines on the index.

The top gainers of the Nifty were Cipla up by 2.00%, Dr Reddy up by 1.65%, RInfra up by 1.34%, ITC up by 1.31% and Kotak Bank up by 1.30%.

On the flip side, Hindalco down by 1.78%, Cairn down by 1.61%, Tata Steel down by 1.27%, IDFC down by 1.25% and Ultra Cement down by 1.18%, were the major losers on the index.

All the Asian equity indices were trading in the red; Kospi Composite was down by 0.57%, Taiwan Weighted down by 0.56%, Jakarta Composite down by 0.90%, Straits Times was down by 0.38%, KLSE Composite down by 0.18%, Hang Seng was down by 0.48%, Shanghai Composite was down by 0.36% and Nikkei 225 down by 0.69%.