Benchmarks trim gains; broader indices stage mix trend

Indian equity markets have trimmed some more gains but managed to trade sanguine thanks to aggressive buying in FMCG, Healthcare and Information Technology sectors on the back persistent foreign capital inflows. Hopes of a rate cut by the Reserve Bank of India in its monetary policy review next week are also doing well for D-street, besides for banking stocks. However, uproar in Parliament over Walmart lobbying report, to some extent is weighing on investor’s sentiment. With the Walmart lobbying disclosure becoming a major political issue, the UPA government on Tuesday agreed to an inquiry on the matter. The two Houses were earlier adjourned over Opposition uproar over reports that the US retail giant Walmart had employed a firm to lobby its case in India. Samajwadi Party and Bahujan Samaj Party have also been warring over the issue of SC/ST quota in promotions in government jobs. Additionally, stocks from Realty, Power and PSU counters emerging as the weak spells of the trade, have started eating into bourses gains.

Back to D-street, 30 share index, Sensex, and widely followed index, Nifty, both are trading respective 19500 and 5900 levels, after facing a stiff resistance at 19600 and 5950 levels, with gains of around half a percent. Meanwhile, broader indices continue to stage mix trend.

On the global front, drawing support from expectations that the U.S. Federal Reserve will take fresh economic stimulus measures this week, Asian shares continue to trade mostly in green terrain. At the end of the two-day meeting which begins on Tuesday, the Fed is expected to announce to buy $45 billion per month of longer-dated Treasuries beginning in January to replace the current Operation Twist programme, which would expire at the end of December. Additionally, European stock futures are showing an uptick in the screen trade before Federal Reserve policy makers meet and as investors await news on U.S. budget talks to avoid the so-called fiscal cliff.

Closer home, the BSE Sensex is currently trading at 19514.08, up by 104.39 points or 0.54% after trading in a range of 19612.18 and 19466.29. There were 19 stocks advancing against 11 declines on the index. The market breadth on the BSE was positive; there were 1258 shares on the gaining side against 1367 shares on the losing side while 135 shares remain unchanged.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.40% and Small cap index has gained 0.08%.

The top gaining sectoral indices on the BSE were FMCG up by 1.23%, Healthcare up by 0.58%, IT up by 0.50%, Bankex up by 0.42% and Technology up by 0.32%, while Realty down by 0.88%, Power down by 0.62%, PSU down by 0.19%, Auto down by 0.12% and Oil & Gas down by 0.08% were the only losers on the BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.87%, Bajaj Auto up by 2.41%, HDFC up by 1.88%, Sun Pharma up by 1.79% and Jindal Steel was up by 1.75%.

On the flip side, BHEL down by 1.79%, Hindalco Inds down by 1.46% Tata Motors down by 1.13%, Tata Power down by 1.06%, and Tata Steel down by 0.76% were the top losers on the Sensex.

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.

The S&P CNX Nifty is currently trading at 5,935.40, up by 26.50 points or 0.45% after trading in a range of 5,965.15 and 5,923.65. There were 30 stocks advancing against 20 declines on the index.

The top gainers of the Nifty were Ambuja Cement up by 2.85%, HUL up by 2.69%, Bajaj Auto up by 2.32%, ACC up by 2.06% and Ultra Cement up by 2.02%.

On the flip side, BHEL down by 1.89%, Hindalco Inds down by 1.71%, Cairn down by 1.59%, Tata Motors down by 1.16%, and Tata Power down by 1.06% were the top losers on the Nifty.

Majority of the Asian indices were trading in the green; Hang Seng added 0.07%, Jakarta Composite rose 0.26%, KLSE Composite advanced 0.42%, Taiwan Weighted inched up by 0.06%, Seoul Composite and Straits Times firmed up by 0.37%.

On the other hand, Shanghai Composite declined 0.31% and Nikkei 225 was down by 0.09% were the losers in Asian pack.