Post session - Quick review

Intra-day reversal washed away the sharp gains of Indian equity markets, which saw benchmark equity indices oscillating near their 23 month high in the morning session, thereby leading to flattish to negative close at D-street. Profit-booking, which took place after the Nifty futures breached the key psychological level of 6,000 for the first time since January 7, 2011, mainly dragged the benchmark equity indices lower for the session. Further, renewed concerns about India's current account deficit after data on Tuesday showed exports fell 4 percent to $22.3 billion in November, while imports jumped to $41.5 billion, leaving a trade deficit of $19.3 billion, also added to the investor’s woes, who were already trading cautious on account of uproar in the Parliament over Wal-Mart lobbying issue that prompted the government to declare that it had no hesitation in ordering a probe into reports that the retail giant had spent money to further its case in India. Additionally, investors also went easy on equities ahead of release of factory output data for October on Wednesday, one of the key factors to determine RBI’s stance in its upcoming monetary policy on December 18, 2012.  Registering third consecutive session of downtrend, 30 share index, Sensex, lost over quarter points to shut shop sub 19400 level and 50 share index, Nifty, too concluded below the 5900 level with loss of over 0.15%.  Levels of 19600 (for Sensex) and 5950 (for Nifty) turned out to be stiff resistance levels for benchmark equity indices. Meanwhile, broader indices too ended in red with loss of close to a percent.

Positive global leads failed to sustain the uptrend at D-street. Asian pacific shares although mostly closing into green terrain, lost some steam towards the close as efforts by U.S. leaders to reach a budget deal before the year's end appeared deadlocked and fears lingered that a leadership change in Italy could derail Europe's efforts to tackle its financial crisis. Monti said over the weekend that he found it impossible to lead after former Prime Minister Silvio Berlusconi's party, Parliament's largest, dropped its support for the government. Nevertheless expectations that U.S. Federal Reserve will take fresh economic stimulus measures this week provided comfort to European shares, besides Asian counterparts. At the end of the two-day meeting which begins on Tuesday, the Fed is expected to announce it will buy $45 billion per month of longer-dated Treasuries beginning in January to replace the current Operation Twist programme.

Closer home, although selling witnessed was across the board, stocks from Realty, Oil & Gas and PSU counters suffered maximum brunt of profit-booking, with defensive Fast Moving Consumer Goods counter emerging to be as the sole gainer amongst BSE sectoral front. Banking shares took a u-turn to trade in red after banking law amendment bill gets stalled by oppositions in Lok Sabha, which retaliating to their loss on FDI issue stalled the proceedings of lower house, thereby raising doubts about its passing in the coming days. Additionally, Auto counter lost out on momentum post reports suggested that sales in passenger car segment, dropping by 8.25 per cent to 1.58 lakh units last month from 1.72 lakh units in the same month last year. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1158: 1760 while 142 scrips remained unchanged. (Provisional)

The BSE Sensex lost 22.55 points or 0.12% and settled at 19387.14. The index touched a high and a low of 19612.18 and 19285.29 respectively. 8 stocks were seen advancing while 22 stocks were declining on the index (Provisional)

The BSE Mid-cap index was down by 1.18% while Small-cap index was down by 0.91%. (Provisional)

On the BSE Sectoral front, FMCG up 0.89% was the sole gainer, while Realty down by 2.02%, Oil & Gas down by 1.07%, PSU down by 1.01%, Power down by 0.97% and Teck down by 0.94% were the top losers in the space. (Provisional)

The top gainers on the Sensex were Jindal Steel up 2.14%, Bajaj Auto up by 2.13%, Hindustan Unilever up 1.84%, HDFC up 1.70% and Sun Pharma up 1.66%, while, BHEL down by 2.79%, Hindalco Inds down by 2.52%, NTPC down by 1.75%, Coal India down by 1.34% and Maruti Suzuki down by 1.31% were the top losers in the index. (Provisional)

Meanwhile, a gloomy economic growth outlook, high interest rates along with rising ownership costs are taking a toll on Auto industry, as Car sales in India has slumped to 8.25 percent in November. Sales which grew at their fastest pace in 22 months in October, during the annual festive season that began in September and peaked in November, only to leave them highly disappointed for the succeeding months.

According to November sales data of automobiles released by SIAM, total sales of vehicles across categories registered growth of 1.79 per cent at 15.16 lakh units as against 14.89 lakh units in the same month last year. The overall growth in domestic sales during April-November 2012 was 4.80 percent over the same period last year.

Total passenger vehicles sales grew by only 3.86 percent in November 2012 over same month last year, while for cumulative period of April-November 2012, it grew at 9.62 percent over same period last year. In the passenger car segment, sales fell by 8.25 per cent to 1.58 lakh units last month from 1.72 lakh units in the same month last year. Passenger cars, which include sedans and hatchbacks, grew by a mere 1.28 per cent as compared to the same period last year, while vans grew by 1.04 per cent. Utility vehicles (including SUVs and MUVs), grew by a robust 61.69 per cent over last year. Nine of the 19 carmakers reported shrinking volumes and these included heavyweights like Hyundai, Tata Motors, Toyota, Volkswagen, Ford and General Motors. Car sales grew just 1.3 percent in the April-November period from a year previously.

The overall Commercial Vehicles segment registered growth of 2.73 percent in April-November 2012 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered decline at (-16.34) percent, Light Commercial Vehicles grew at 16.98 percent. In November 2012 M&HCVs sales declined by (-33.22) percent over November 2011.

Further, three Wheelers sales grew by 4.84 percent in April-November 2012, while, two Wheelers sales registered a growth of only 4.05 percent during April-November 2012. Scooters, mopeds and motorcycles sales grew by 20.06 percent, 2.92 percent and 0.29 percent respectively over same period last year. In the month of November 2012 Scooters, Mopeds and Motorcycles grew by 6.64 percent, -2.15 percent and 0.05 percent respectively over same period last year.

India VIX, a gauge for markets short term expectation gain 0.16% at 14.67 from its previous close of 14.51 on Monday. (Provisional)

The S&P CNX Nifty lost 10.10 points or 0.17% to settle at 5,898.80. The index touched high and low of 5,965.15 and 5,865.45 respectively. 17 stocks advanced against 33 declining on the index. (Provisional)

The top gainers on the Nifty were Bajaj-Auto up 2.24%, Ambuja Cement up 2.15%, Jindal Steel up 2.05%, Hindustan Unilever up 1.71% and Sun Pharma was up 1.47%. On the other hand, Hindalco Inds down 2.76%, BHEL down by 2.67%, Cairn down by 2.11%, DLF down by 2.05% and HCL TECH down by 1.59% were the top losers. (Provisional)

The European markets were trading in green with, France’s CAC 40 up by 0.64%, Germany’s DAX up 0.54% and the United Kingdom’s FTSE 100 up by 0.15%.

Asian markets ended mostly in green on Tuesday, though the Chinese market remained in somber mood since start after China’s new yuan loans trailed forecasts last month, restraining the pace of recovery after a seven-quarter slowdown. Meanwhile, the Chinese currency yuan retreated from the upper limit of its trading band, reaching a one-week low on speculation of central bank’s intervention. However, most of the other indices ended in green. Traders in the region waited for progress on US budget talks and eyed Federal Reserve policy meet where the Fed is expected to add monetary stimulus.