Benchmarks extend losses for eighth straight day; IIP, WPI data eyed

Indian equity benchmarks, prolonging their southward journey for eighth straight day, ended yet another session slightly in the red on Monday as traders adopted cautious approach ahead of key macroeconomic data such as industrial production and inflation which is expected in the early part of the week. The December IIP data and wholesale price index (WPI) inflation figure are scheduled to be released on Feb 12 and Feb 14 respectively. Choppiness prevailed throughout the session on Reserve Bank of India Governor Duvvuri Subbarao cautioning 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.

Selling got intensified after Society of Indian Automobile Manufacturers (SIAM) reported 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 9.51 per cent to 63,218 units in January, 2013 from 69,865 units in the same month of previous year. Sentiments also remained dampen on continued concerns over India’s economic growth after government estimates on February 1, 2013 showed FY13 growth could be worse than expected.

Firm opening in European counters too failed to boost Indian markets. European markets traded largely in the green in early trade ahead of the finance chiefs meeting in Brussels today to discuss aid to Cyprus and Greece as a tightening election contest in Italy and corruption allegations in Spain disrupt market calm. Equity trading volume was lower than average with markets in Japan, China, Hong Kong, South Korea, Taiwan, Vietnam, Singapore and Malaysia closed for public holidays.

Though, some recovery attempts was seen after Finance Minister P Chidambaram indicated that he would bring in major changes in the Budget to boost equity culture among retail investors and address concerns that this group preferred financial assets over physical ones, mainly gold. But the recovery effort turned futile as profit booking was witnessed on the higher levels. However, the downside remain capped after select public sector undertaking (PSU) companies like Hindustan Copper, HMT, National Fertilisers, RCF, Engineers India and Dredging Corporation of India, which edged higher on the back of heavy volumes after offer-for-sales (OFS) of Oil India and National Thermal Power Corporation (NTPC) got strong response from the overseas investors.

The NSE’s 50-share broadly followed index Nifty declined by thirty five points and ended blow the psychological 5,900 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex dropped by about twenty five points to finish below the psychological 19,500 mark. Moreover, broader markets too struggled to get some traction and ended the session slightly in the red. The market breadth remained in favor of declines as there were 938 shares on the gaining side against 1,061 shares on the losing side while 978 shares remain unchanged.

Finally, the BSE Sensex lost 24.20 points or 0.12% to settle at 19,460.57, while the S&P CNX Nifty declined by 5.65 points or 0.10% to end at 5,897.85.

The BSE Sensex touched a high and a low of 19,543.44 and 19,416.94, respectively. The BSE Mid cap index down by 0.18% and Small cap index was down by 0.31%.

The top gainers on the Sensex were, Cipla up by 3.62%, Dr Reddys Lab up by 2.45%, Hindalco up by 2.14%, Sterlite Industries up by 2.07% and Hindustan Unilever up by 1.88%, while Maruti Suzuki down by 1.64%, ONGC down by 1.61%, Jindal Steel down by 1.60%, Bharti Airtel down 1.57% and HDFC down by 1.27% were the top losers on the index.

The top gainers on the BSE Sectoral space were, Realty up 0.91%, Health Care up 0.74%, PSU up 0.47%, Bankex up 0.34% and Power up 0.29%, while Capital Goods down 0.81%, TECk own 0.43%, IT down 0.33%, FMCG down 0.31% and Oil & Gas down 0.18% were top losers on the sectoral space.

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.

The S&P CNX Nifty touched a high and a low of 5,924.15 and 5,879.10 respectively.

The top gainers on the Nifty were Cipla up by 3.66%, Axis Bank up by 3.04%, Hindalco up by 2.60%, Tata Motors up by 2.40% and Dr Reddy up by 2.24%.

The top losers of the index were ACC down by 3.70%, Jindal Steel down by 2.57%, IDFC down by 2.26%, Maruti down by 1.99% and ONGC down by 1.91%.

The European markets were trading in green, France’s CAC 40 up by 0.48%, United Kingdom’s FTSE 100 up by 0.28% and Germany’s DAX up by 0.18%.

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.