Benchmarks trade flat with positive bias on F&O December series expiry day

Indian frontline equity benchmarks have got off to a sedate start with positive bias ahead of December month’s expiry in the derivatives segment. Some amount of support came in from Asian counters as most of the regional peers were trading in the green at this point of time on hopes of growth recovery in Asia after minutes of Bank of Japan monetary policy hinted towards further easing, supported the market sentiments. However, disappointing cues from US market took their toll on domestic sentiments. The US markets extended their decline after Christmas break due to ongoing worries over the looming fiscal cliff.

Back home, the frontline equity indices were comfortably trading above their crucial 19,400 (Sensex) and 5,900 (Nifty) mark as some support came after government announced sops for exporters and hopes of more steps from the RBI to ease the liquidity situation influenced the trading sentiments. Moreover, pharma stocks continued their jubilation as the Planning Commission has set a target for the pharmaceutical industry to reach $100 billion by 2020 and account for five per cent share of the global drug industry in the next five years. However, the gains remain capped as traders remained cautious as Planning Commission is likely to seek the National Development Council’s nod to lower the average annual growth rate for the 12th Plan period to 8 per cent from 8.2 per cent to make it more realistic. On the sectoral front, auto witnessed the maximum gain in trade followed by metal and realty while, fast moving consumer goods and software 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 933 shares on the gaining side against 633 shares on the losing side while 71 shares remain unchanged.

The BSE Sensex opened at 19,479.84; about 62 points higher compared to its previous closing of 19,417.46, and has touched a high and a low of 19,504.40 and 19,424.08 respectively.

The index is currently trading at 19,433.48, up by 16.02 points or 0.08%. There were 21 stocks advancing against 9 declines on the index.

The overall market breadth has made a positive start with 56.99% stocks advancing against 38.67% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.30% and 0.08% respectively.

The top gaining sectoral indices on the BSE were, Auto up by 0.78%, Metal up by 0.60%, Realty up by 0.57%, HC up by 0.49% and Power up by 0.21%. While, FMCG down by 0.15% and IT down by 0.10% were the few losers on the index.

The top gainers on the Sensex were Tata Motors up by 2.24%, Tata Steel up by 1.37%, Hindalco Industries up by 1.24%, Maruti Suzuki up by 1.08% and Sterlite Industries up by 1.03%.

On the flip side, ICICI Bank was down by 0.49%, ITC was down by 0.47%, Coal India was down by 0.46%, BHEL was down by 0.22% and HDFC Bank was down by 0.20% were the top losers on the Sensex.

Meanwhile, the Finance Ministry is going to take help from the Financial Intelligence Unit-India (FIU-India) in tracking the evasion of central excise duty and service tax. In situations, where the tax defaulters are not traceable, the financial data of the FIU-India would be helpful to track the financial transactions or assets of defaulters of Central excise duty and service tax.

According to the finance ministry, once the data receive this will be used with the help of the concerned zonal chief commissioner, for realizing amount overdue of defaulters. It has been reported that the entire exercise is being closely monitored at the ‘highest level’ in the Ministry and any information shared with or received from FIU will be kept confidential and will not be used for evidential purposes.

FIU-India established in 2004 is the central, national agency responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions to enforcement agencies and foreign FIUs.

The government is facing extreme pressure on the revenue collection, as tax collection is much lower than the budgeted target. During April-November period of the current fiscal total indirect tax collection stood at Rs 2.92 lakh crore, growing by 16.8 per cent against the budgeted target of 27 per cent.

The S&P CNX Nifty opened at 5,930.20; about 24 points higher compared to its previous closing of 5,905.60, and has touched a high and a low of 5,930.80 and 5,905.45 respectively.

The index is currently trading at 5,910.40, up by 4.80 points or 0.08%. There were 33 stocks advancing against 17 declines on the index.

The top gainers of the Nifty were Tata Motors up by 1.60%, Tata Steel up by 1.36%, Hindalco Industries up by 0.45%, Axis Bank up by 1.13% and Maruti Suzuki up by 1.12%.

On the flip side, ITC down by 0.59%, Ultra Tech Cement down by 0.50%, Cairn down by 0.48%, Coal India down by 0.45% and ICICI Bank down by 0.43%, were the major losers on the index.

Most of the Asian equity indices were trading in green; Hang Seng surged 95.68 points or 0.42% to 22,636.86, Jakarta Composite rose 5.25 points or 0.12% to 4,280.35, KLSE Composite added 3.11 points or 0.19% to 1,674.69, Nikkei 225 soared 140.53 points or 1.37% to 10,370.89, Straits Times strengthened 6.74 points or 0.21% to 3,187.55 and Taiwan Weighted was up by 3.80 points or 0.05% to 7,637.99.

On the flip side, Shanghai Composite declined 2.58 points or 0.12% to 2,216.55 and KOSPI Composite was down by 4.19 points or 0.21% to 1,978.06.