Post session - Quick review

Indian markets witnessed a choppy day of trade on Monday, it was the eighth trading day in a row when markets remained lackluster, lacking any regional cues and cautiousness ahead of the economic events of industrial production and inflation. Though, there was some recovery attempt in the final hours but that too turned futile as the traders opted to book profit on the higher levels. Major indices were seen struggling most part of the day, not having any major supportive cues. However, there is an expectation that wholesale prices based inflation likely eased again in January due to a smaller rise in prices for manufactured goods, at the same time the index of industrial production (IIP), which includes output at factories, mines and utilities is likely to have expanded in December after shrinking 0.1 percent in November.

The indices started the day on a cautious note as most of the Asian peers remained shut for the Lunar New Year holiday. Though, the US markets had made a good closing on Friday but the mixed start of the European markets further weighed on the sentiments of the local indices. European shares were cautious ahead of some economic data this week which will probably show the Euro crisis was in worst state in the passing quarter.

Back home, though the trade remained choppy from the beginning but during very early session markets slumped to their lowest point after Society of Indian Automobile Manufacturers (Siam), an auto industry body reported a third consecutive monthly decline in auto sales numbers. Sales fell to 173,000 units, down by 12.45% from same month year ago. Sales had declined 12.51% in December and 8.25% in November. However, the auto index made some recovery in late trade backed by gains in Tata Motors and Bajaj Auto. There was another reason for the subdued trade in the domestic market, Reserve Bank of India’s Governor Duvvuri Subbarao cautioned that the country was headed for the highest ever current account deficit (CAD) this fiscal, after it rose to 5.3 per cent of GDP in the second quarter and expressed concern over the way the CAD was being financed by volatile inflows instead of more foreign direct investments. On the sectoral front, despite some weakness in rupee, IT and technology sector stocks remained the major laggard after capital goods sector. Meanwhile, the new entrant to the equity exchange trading, MCX-SX started trading shares today but the volumes remained thin.

The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1239: 1597 while 127 scrips remained unchanged. (Provisional)

The BSE Sensex lost 25.95 points or 0.13% and settled at 19484.77. The index touched a high and a low of 19543.44 and 19416.94 respectively. 13 stocks were seen advancing while 17 stocks were declining on the index (Provisional)

The BSE Mid-cap index was down by 0.18% while Small-cap index was down by 0.36%. (Provisional)

On the BSE Sectoral front, Realty was up by 0.92%, Health Care up by 0.70%, PSU up by 0.57%, Bankex up by 0.33% and Power up by 0.31% were the top gainers, while Capital Goods down by 0.88%, TECk down by 0.45%, IT down by 0.34%, FMCG down by 0.27% and Oil & Gas down by 0.15% were the losers in the space.

The top gainers on the Sensex were Cipla up by 3.47%, Hindalco Industries up by 2.51%, Dr Reddys Lab up by 2.45%, Sterlite Industries up by 2.42% and Tata Motors up by 2.08%, while, Jindal Steel down by 1.87%, ONGC down by 1.77%,  Bharti Airtel down by 1.68%, Maruti Suzuki down by 1.64% and L&T down by 1.41% were the top losers in the index. (Provisional)

Meanwhile, as per the data released by the Society of Indian Automobile Manufacturers (SIAM), domestic passenger car sales declined by 12.45 per cent to 173,420 units in January, 2013 from 198,079 units in the same month of 2012. Total sales of commercial vehicles declined by 9.51 per cent to 63,218 units in January, 2013 from 69,865 units in the same month of previous year.

While, motorcycle sales grew by 7.45 per cent to 886,527 units from 825,050 units in the same month previous year on y-o-y basis. Total two-wheeler sales increased by 8.46 per cent to 12,06,937 units in January, 2013 from 11,12,767 units in January, 2012.

Moreover, total sales of vehicles across categories registered a growth of 5.31 per cent to 15,61,104 units in January 2013 against 14,82,437 units in the same month of 2012, SIAM added.

India VIX, a gauge for markets short term expectation of volatility gained 3.23% at 15.65 from its previous close of 15.16 on Friday. (Provisional)

The S&P CNX Nifty lost 6.40 points or 0.11% to settle at 5,897.10. The index touched high and low of 5,924.15 and 5,879.10 respectively. 22 stocks advanced against 28 declining ones on the index. (Provisional)

The top gainers on the Nifty were Cipla was up by 3.66%, Axis Bank up by 3.04%, Hindalco Industries up by 2.60%, Tata Motors up by 2.40% and Dr. Reddy's Laboratories was up by 2.40%. On the other hand, ACC down by 3.70%, Jindal Steel down by 2.57%, IDFC down by 2.26%, Maruti Suzuki down by 1.99% and ONGC down by 1.91% were the top losers. (Provisional)

The European markets were trading in green with, France’s CAC 40 up 0.53%, Germany’s DAX up 0.24% and the United Kingdom’s FTSE 100 up 0.44%.

In Asia, stock markets in Hong Kong, mainland China and Seoul were closed on Monday for the Lunar New Year holiday. Indonesia’s Jakarta composite went home with green mark, as investors awaited earnings for direction amid public holidays in several key financial markets. Japanese markets were also shut for a public holiday.

Meanwhile, euro slipped to a two-week low as uncertainty surrounded a political scandal in Spain and a looming election in Italy.