Benchmarks make flat-to-negative start of new week

Indian equity markets have made a flat-to-negative start of the new week as investors remained cautious ahead of IIP data which is scheduled to be announced later in the week. However, global cues remained supportive as the US markets ended mostly in green on Friday on the back of upbeat jobs report, though there was concern of delay in reaching an agreement on the fiscal cliff that capped the gains. Moreover, most of the Asian equity indices were trading in the green at this point of time as investors took cues from better-than-expected economic data from China and the United States that raised hopes of pick-up in growth momentum.

Back home, shares of sugar manufacturing companies remained under pressure in early deals on reports that Uttar Pradesh (UP) has increased State Advised Price (SAP) for sugarcane procurement by more than 15% to Rs 275-290 a quintal for 2012-13 compared to last year. SAP is the price below which mills cannot buy cane from farmers. However, software pack got some strength supported by Wipro. Stock of third largest IT bellwether rose about two percent after the company signing a definitive agreement to acquire 100% stake in Singapore-based FMCG Company, L.D Waxsons Group, for an all cash consideration of about $144 million.

On the sectoral front, software witnessed the maximum gain in trade followed by technology and realty while, metal, oil and gas and fast moving consumer goods remained the top losers on the BSE sectoral space. The broader indices were outperforming benchmarks while, the market breadth on the BSE was positive; there were 1,002 shares on the gaining side against 560 shares on the losing side while 80 shares remain unchanged.

The BSE Sensex opened at 19,442.19; about 18 points lower compared to its previous closing of 19,424.10, and has touched a high and a low of 19,471.15 and 19,405.19 respectively.

The index is currently trading at 19,407.57, down by 16.53 points or 0.09%. There were 12 stocks advancing against 18 declines on the index.

The overall market breadth has made a positive start with 61.02% stocks advancing against 34.10% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.27% and 0.39% respectively.

The top gaining sectoral indices on the BSE were, IT up by 0.47%, TECk up by 0.30%, Realty up by 0.29%, Power up by 0.24% and CD up by 0.20%. While, Metal down by 0.52%, Oil and Gas down by 0.30%, FMCG down by 0.15%, PSU down by 0.03% and Healthcare down by 0.01% were the top losers on the index.

The top gainers on the Sensex were Wipro up by 1.88%, Tata Motors up by 1.03%, BHEL up by 0.86%, Infosys up by 0.76% and HUL up by 0.69%.

On the flip side, Sterlite Industries was down by 1.82%, Bharti Airtel was down by 0.99%, ITC was down by 0.80%, M&M was down by 0.66% and NTPC was down by 0.59% were the top losers on the Sensex.

Meanwhile, pressing for some specific measures to bridge the difference between expenditure and revenue, the Parliamentary Committee termed the government's approach to deal with worsening fiscal situation as 'lackadaisical.’ The report, which was tabled in the Lok Sabha on Dec 6, said the government's reply on steps being taken to contain fiscal deficit are illusive on specific details.

The Standing Committee on Finance, which is headed by senior BJP Leader Yashwant Sinha strongly, recommended that the government must take specific measures with reference to sectors/schemes to contain the deficit. The Committee also noted that the fiscal deficit in 2012-13 is likely to be 5.3%, as against 5.1% according to the Budget.

The Committee report also considered the views of the government on the possibility of rating of Ministries based on their overall performance with regard to timely utilization of budget funds. Report also advised the Finance Ministry to set up expert group to rationalize the existing demands of Ministries and departments according to the Central assistance schemes, block grants and state planned schemes.

The S&P CNX Nifty opened at 5,916.05; about 9 points lower as compared to its previous closing of 5,907.40, and has touched a high and a low of 5,916.90 and 5,897.55 respectively.

The index is currently trading at 5,897.80, down by 9.60 points or 0.16%. There were 18 stocks advancing against 32 declines on the index.

The top gainers of the Nifty were Wipro up by 1.80%, Reliance Infra up by 1.57%, HCL Tech up by 0.99%, Tata Motors up by 0.96% and BHEL up by 0.84%.

On the flip side, Sesa Goa down by 2.96%, IDFC down by 1.68%, Cairn down by 1.23%, M&M down by 0.95% and Bharti Airtel down by 0.95%, were the major losers on the index.

Most of the Asian equity indices were trading in the green; Shanghai Composite was up by 9.92 points or 0.48% to 2,071.70, Hang Seng gained 77.54 points or 0.35% to 22,268.71, Jakarta Composite was higher by 13.48 points or 0.34% to 4,303.89, KLSE Composite was up by 11.18 points or 0.70% to 1,629.05, Nikkei 225 gained 17.84 points or 0.19% to 9,545.21 and Straits Times was up by 22.28 points or 0.72% to 3,129.91.

On the other hand, Taiwan Weighted was trading lower by 24.13 points or 0.32% to 7,617.25 and Seoul Composite was marginally down by 0.80 points or 0.04% to 1,956.65.