Domestic bourses trade flat on last day of the year

Domestic equity indices have made a flat start on last trading day of the year 2012 as there is still not anything concrete from the US. Senate leaders on Dec 30 failed to produce deal with just hours to go before large tax increases and spending cuts and there is likely to be another meeting of US Congress in the evening. Moreover, Asian equity indices too were trading loser at this point of time. However, Chinese benchmark gained ground after manufacturing data showed that sector extending its recovery.

Back home, market-men adopted cautious approach awaiting the crucial current account data scheduled to be announced later today. India's current account data for July-September is expected to show a record high deficit, leading to a negative balance of payments. However, the sentiments got some support after corporate affairs ministry announced that it is setting up a new intelligence unit that will delve into 'data mining' from all possible sources to detect any wrongdoings by the companies and their promoters at the earliest possible stage. Some jubilation also came in from retail space as stocks like Shoppers Stop, Pantaloon Retail and Trent edged higher as the government is likely to clear IKEA’s proposal to open cafeterias at its proposed mega retail outlet in a FIPB meeting, making rules a bit more liberal for single brand retailers.

FMCG, software and banking indices were the few losers so far in the session while realty and auto indices were among the noteworthy leaders. Consumer durables, power, oil and gas and PSU indices also remained in the positive territory. Moreover, the broader indices were outperforming benchmarks while, the market breadth on the BSE was positive; there were 1,086 shares on the gaining side against 590 shares on the losing side while 79 shares remain unchanged.

The BSE Sensex opened at 19,422.59; about 22 points lower compared to its previous closing of 19,444.84, and has touched a high and a low of 19,491.58 and 19,422.59 respectively.

The index is currently trading at 19,449.66, up by 4.82 points or 0.02%. There were 22 stocks advancing against 8 declines on the index.

The overall market breadth has made a positive start with 61.88% stocks advancing against 33.62% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.28% and 0.48% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 1.22%, Auto up by 0.63%, Metal up by 0.50%, Consumer Durables up by 0.46% and Power up by 0.30%. While, FMCG down by 0.15%, IT down by 0.08% and Bankex down by 0.05% were the few losers on the index.

The top gainers on the Sensex were Hindalco Industries up by 1.51%, Wipro up by 1.41%, Tata Motors up by 0.95%, Sterlite Industries up by 0.77% and Hero Moto Corp up by 0.69%.

On the flip side, ITC was down by 0.66%, TCS was down by 0.49%, Dr Reddys Lab was down by 0.48%, ICICI Bank was down by 0.46% and Coal India was down by 0.45% were the top losers on the Sensex.

Meanwhile, receiving several complaints from various states, the Prime Minister Manmohan Singh has requested the Planning Commission to submit a report in three weeks on the fuel shortages faced by power plants. The ‘request’ comes amid acute fuel shortages that are affecting the country’s power generation, with already several projects running below their capacity. Further, PM has also directed all Chief Ministers to write to the Deputy Chairman of the Planning Commission giving details of plants, which are worst hit.

Fuel scarcity is a major issue plaguing the power sector which is expected to see generation capacity addition of about 88,000 MW in the 12th Plan (2012-17). There are also disparity between many power producers and Coal India, delaying the signing of fuel supply agreements (FSAs).

Fuel supply pacts are yet to be signed for generation capacity of about 8,000 MW that are ready to be commissioned. On December 17, the Prime Minister’s Office directed power companies to enter into Fuel supply pacts within a month, after November deadline for FSAs was missed, amid differences over various issues including coal quality.

The S&P CNX Nifty opened at 5,901.20; about 7 points lower compared to its previous closing of 5,908.35, and has touched a high and a low of 5,919.00 and 5,898.80 respectively.

The index is currently trading at 5,906.95, down by 1.40 points or 0.02%. There were 30 stocks advancing against 18 declines and 2 remain unchanged on the index.

The top gainers of the Nifty were DLF up by 2.71%, Hindalco Industries up by 1.82%, Punjab National Bank up by 1.80%, Wipro up by 1.11% and Reliance Infrastructure up by 0.89%.

On the flip side, ITC down by 0.86%, TCS down by 0.72%, CAIRN down by 0.64%, BPCL down by 0.63% and Infosys down by 0.49%, were the major losers on the index.

Most of the Asian equity indices were trading in red; Hang Seng dipped 9.67 points or 0.04% to 22,656.92, KLSE Composite declined 5.75 points or 0.34% to 1,675.58 and Straits Times was down by 23.46 points or 0.74% to 3,168.34.

On the flip side, Shanghai Composite was up by 25.08 points or 1.12% to 2,258.33.

However, Indonesia, Japan, South Korea and Taiwan markets remained closed for trade today on the account of public holiday.