Benchmarks gyrate around neutral line; Auto, TECk lead

After making a muted start, the Indian equity markets are gyrating around their neutral line in the late morning session. On global front, Asian markets were trading mostly in green on hopes for a resolution to the US fiscal cliff after positive comments by lawmakers in the US after first day of talks on November 16, 2012. Back home, traders were seen piling up position in Auto, TECk and PSU sector while selling was witnessed in Bankex, Realty and CD sector. Telecom stocks such as Bharti Airtel, Idea Cellular and   Reliance Communications edged higher after Telecom Minister Kapil Sibal stated that the government intends to conduct another auction of telecom bandwidth before the current fiscal year that ends in March 2013. In the scrip specific development, Jet Airways jumped on entering into partnership pact with EAN.  Tata Steel rose on commissioning new coke oven battery and by-product plant.  Dr Reddy’s Lab soared on launching Sildenafil Tablets. NMDC gained on plan to increase iron ore production capacity to 48 MTPA by 2014-15.  Zuari Global surged on inking MoU to set up manufacturing facility in UAE. The NSE Nifty and BSE Sensex were managing to hold their psychological 5,550 and 18300 levels. The market breadth on BSE was negative, advances: declines in the ratio of 893:1431

The BSE Sensex is currently trading at 18315.57, up by 6.20 points or 0.03% after trading in a range of 18386.78 and 18276.81. There were 17 stocks advancing against 13 declines on the index.

The broader indices too have losses; the BSE Mid cap and Small cap indices were trading lower by 0.41% and 0.28% respectively.

The top gaining sectoral index on the BSE was Auto up by 0.64%, TECk up by 0.39%, PSU up by 0.19%, IT up by 0.18%, Power up by 0.12%. While, Bankex and Realty were down by 0.46%, CD down by 0.45%, Oil & Gas down by 0.44% and Metal down by 0.29% were top losers on the index.

The top gainers on the Sensex were Maruti Suzuki up by 2.99%, Bharti Airtel up by 2.51%, Mahindra & Mahindra up by 1.68%, ONGC up by 1.06% and ITC up by 1.04%.

On the flip side, Hindustan Unilever down by 1.22%, RIL down by 1.09%, Hindalco Inds down by 0.83%, HDFC down by 0.66% and Sterlite Inds down by 0.57% were the top losers on the Sensex.

Meanwhile, the Inter-Ministerial Group (IMG), which recommended de-allocation of eight blocks allotted to PSUs, is now planning to meet on Monday to decide the fate of 14 more mines allotted to public sector firms. However, the panel has already concluded the scrutiny of 31 coal blocks allotted to 51 private firms and in last month government had accepted its recommendations for de-allocation of 13 mines and deduction of bank guarantees of 14 allottees.

A total of 58 mines were issued show-cause notices for their failure to develop blocks within stipulated timeline. Moreover, IMG on October 9 and 10 had examined 33 coal blocks allocated to public sector firms which were issued notices for delay in production. Earlier this month, IMG had recommended de-allocation of eight such blocks after scrutiny of 19 cases of public sector firms. 

 IMG has been formed by the government in July to review progress of coal blocks allocated to firms for captive use. As per the CAG estimation, undue benefits to the tune of Rs 1.86 lakh crore might accrue to private firms on account of allocation of 57 mines to them without auction.

The S&P CNX Nifty is currently trading at 5,573.25, down by 0.80 points or 0.01% after trading in a range of 5,592.75 and 5,557.20. There were 21 stocks advancing against 29 declines on the index.

The top gainers of the Nifty were Maruti Suzuki up by 3.03%, Bharti Airtel up by 2.39%, M&M up by 1.81%, Chipla up by 1.07%, and Cairn up by 1.06%.

On the other hand, Ambuja Cements down by 2.19%, Lupin down by 1.49%, BPCL down by 1.25%, Hindustan Unilver and Axis Bank down by 1.21% were the major losers on the index.

Most of the Asian indices were in Green; Hang Seng up by 0.48%, Straits Times was up by 0.20%, Kospi Composite up by 1.11%, Taiwan Weighted up by 0.17%, Nikkei 225 surged 1.53% were the gainers. On the flip side Shanghai Composite declined 0.69% KLSE Composite down by 0.31%, Jakarta Composite down by 0.74% were the losers amongst Asian pack.