Post session - Quick review

Local barometer gauges ended off almost where they began from. Although recuperating substantial ground by the closing deals, Indian equity markets managed just about flat close that too with negative bias. Snapping two day’s gaining trajectory, benchmark equity indices after getting flat to positive start drooped, failing to gain significant traction despite positive global set-up. Investors losing interest in risky equities, squared off their position post parliament was adjourned amid uproar by Trinamool Congress members over the issue of FDI in retail and Congress members citing reports claiming that BJP had influenced the CAG report on 2G allocation. In the lackluster session of trade, 30 share barometer index, Sensex, ended reclaiming its 18500 bastion. Similarly, widely followed index, Nifty, despite ending in red, ended past 5600 bastion. Broader indices, meanwhile, too negotiated a positive close albeit positive bias. For the week, both Nifty and Sensex went home with gains of over 3/4 percent. Conversely, BSE Small cap and Midcap indices suffered losses of over 0.70% respectively. (Provisional)

On the global front, Asian pacific shares ended jaunty after manufacturing surveys from the world's biggest economies raised hopes that the global growth outlook is improving at last. Additionally, European counterparts too were enjoying a positive territory, despite data on Thursday pointing to the euro zone sliding into its deepest recession since 2009, on optimism that a funding deal for debt-choked Greece will ultimately be agreed.

Back home, Auto, Oil & Gas, Consumer Durable counters, showcasing exceptional trend, edged higher in trade. On the flip side, Public Sector Undertaking, Realty and Heath Care counters turned out to be the weakest link of the trade. In other sector specific action, telecom stocks rang off amidst squabble over 2G reports. Public Accounts Committee (PAC) Chairman Murli Manohar Joshi today dismissed allegations by former auditor R P Singh that he tried to influence the outcome of the 2G report as an attempt to malign the institutions of CAG and PAC. Additionally, Pharmaceuticals stocks, Cipla, Lupin, Ranbaxy Lab turned bitter after Union Cabinet endorsing the Group of Ministers' (GoM) recommendations on the National Pharmaceutical Pricing Policy, imposed a cap on prices of 348 essential medicines at the arithmetic average of prices all drugs in a particular segment with more than one per cent market share. On the other hand, Sugar stocks viz, Shree Renuka Sugars, Bajaj Hindusthan, Balrampur Chini and EID Parry, ended sweeter after Cabinet Committee on Economic Affairs (CCEA) made it mandatory for oil marketing companies (OMCs) - Bharat Petroleum, Hindustan Petroleum and Indian Oil Corporation to blend 5% ethanol with petrol. The committee, headed by Prime Minister Manmohan Singh, has also approved market-based pricing of the biofuel, opening the market for ethanol producers - mostly sugar companies. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1314:1500 while 141 scrips remained unchanged. (Provisional)

The BSE Sensex lost 10.77 points or 0.06% and settled at 18506.57. The index touched a high and a low of 18556.50 and 18402.38 respectively. 11 stocks were seen advancing and 19 stocks were declining on the index (Provisional)

The BSE Mid-cap index was up by 0.06% while Small-cap index was up by 0.20%. (Provisional)

On the BSE Sectoral front, Auto up 0.33%, Oil & Gas up by 0.27%, CD up by 0.16%, TECk up 0.08% and CG up by 0.06% were the gainers, while PSU down by 0.81%, Realty down by 0.58%, HC down by 0.37% , Bankex down by 0.34% and Metal down by 0.31% were the losers in the space.

The top gainers on the Sensex were BHEL up 1.49%, Hero MotoCorp up by 1.35%, Tata Power up 1.04%, RIL up 0.95% and Sun Pharma up 0.95%, while, NTPC down by 2.87%, Gail India down by 2.03%, Cipla down by 1.65%, Wipro down by 1.23% and ITC down by 0.95% were the top losers in the index. (Provisional)

Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) has approved the pricing formula for procurement of bio-ethanol by oil marketing companies (OMCs) and its suppliers which will help the country save around 100 crore litres of fuel every year. Further, the mandatory mixing of 5% ethanol in petrol will be implemented across the country from next month.

Earlier in 2009, the CCEA had decided to mix 5% ethanol in petrol but it could not be implemented due to opposition by some sections in the chemical and petroleum sectors. The mandatory ethanol blending with petrol will be implemented across the country, for which the Petroleum Ministry will issue a gazette notification in the coming days, for OMC’s to implement from 2012-13 sugar season, effective from December 1, 2012.

The ethanol-blending programme is currently being implemented in 13 states with blending level of about 2% against a mandatory target of 5%. As per the reservations against the proposal that domestic suppliers would not be able to meet the supply requirements, the government has also allowed import of ethanol in case of shortfalls. Ethanol is a by-product of sugarcane.

The suggestion moved by the Ministry of New and Renewable Energy is expected to help the country in reducing the oil bill for 100 crore litres of petrol and it also help in lessening carbon dioxide and carbon monoxide emissions by around 15%.

The S&P CNX Nifty lost 1.13 points or 0.02% to settle at 5,626.60. The index touched high and low of 5,637.75 and 5,593.55 respectively. 22 stocks advanced against 28 declining ones on the index. (Provisional)

The top gainers of the Nifty were Asian Paint up by 1.89%, BHEL up by 1.60%, HCL Tech up by 1.55%, Hero MotoCorp up by 1.09% and Tata Motors up by 0.99%.

On the flip side, Ranbaxy down by 3.28%, NTPC down by 2.84%, Gail down by 2.16%, Grasim down by 2.13% and BPCL down by 1.43% were the major losers on the index.

Most of European markets were trading in Green with, Germany’s DAX up by 0.14% and the United Kingdom’s FTSE 100 up by 0.19% while France’s CAC 40 down by 0.05%.

Subsequent to previous session’s rally, Asian markets ended mostly up on Friday, ahead of another meeting on Greece's bailout and the resumption of talks on the US fiscal cliff. Meanwhile, Taiwan's markets jumped by 3.1%, bucked up by buying from government funds and other state efforts to restore confidence in the market, one of Asia's worst performers this year. Moreover, South Korea's Kospi Composite went home with green mark, supported by Samsung Electronics. Trade was subdued as Japanese markets closed for a public holiday.