Benchmarks surrender almost all their intraday gains on profit booking

Wednesday’s trading session turned out to be unproductive for stock markets in India as the benchmark equity indices failed to sustain the gains they amassed in the early part of trade. The frontline gauges remained range-bound for most part of the session but drifted to lower levels in the last leg of trade to settle with trivial gains of one fourth of a percent. Investors resorted to profit booking mainly in the late trade ahead of the Wholesale Price Index (WPI) numbers which will decide the RBI’s future course of action.

Earlier, after a positive start, frontline indices extended their rally as sentiments got some boost after India’s exports rose at an annual rate of 0.82% at $25.58 billion in January, with imports too rising by 6.12% at $45.58 billion for the month, leaving a trade deficit of $19.99 billion. Export and imports stood at level of $25.37 billion and at $42.95 billion respectively in January, 2012. However, exports between April and January fell 4.86% to $239.68 billion as against $251.93 billion in the same month of the previous year. Rally in software and technology counters too aided the sentiments after Nasscom reported that export growth from India’s IT outsourcing sector is set to accelerate in the fiscal year starting in April as hopes rise that an improving global economy will drive demand. The sector’s exports are expected to grow between 12 and 14 percent in 2013/14 to as much as $87 billion.

On the global front, European counters traded little lower on Wednesday’s early deals, near the top of a six-day trading range, with Societe Generale sinking 4 percent after the bank unveiled a bigger-than-expected quarterly loss while, Asian markets outside Japan rose, led by South Korean exporters as the yen firmed amid conflicting interpretations of Group of Seven (G-7) comments about the currency’s recent weakness. China, Taiwan and Hong Kong markets remain closed for the Lunar New Year holiday.

Back home, rally in cement sector too supported the sentiments as stocks like ACC, Ultratech Cement and Ambuja Cements edged higher on expectations that the government will provide thrust on infrastructure development in Union Budget 2013-14 to be tabled in the Parliament on February 28, 2013. Retail stocks too edged higher on reports which suggested that Finance Ministry will consider four FDI proposals in single brand retailing, including that of Decathlon and Fossil Inc, worth Rs 750 crore, listed among the worst sectoral performers by the end of trade.

The NSE’s 50-share broadly followed index Nifty rose by ten points to end comfortably above the psychological 5,900 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex surged by over fifty points to finish above the psychological 19,600 mark. However, broader markets struggled to get traction and ended the session in the red with a cut off about half a percent. The market breadth remained in favor of declines as there were 892 shares on the gaining side against 1,229 shares on the losing side while 852 shares remain unchanged.

Finally, the BSE Sensex gained 47.04 points or 0.24% to settle at 19,608.08, while the S&P CNX Nifty rose by 10.45 points or 0.18% to end at 5,932.95.

The BSE Sensex touched a high and a low of 19,723.01 and 19,574.15, respectively. The BSE Mid cap index down by 0.28% and Small cap index was down by 0.46%.

The top gainers on the Sensex were, Tata Motors up by 2.11%, HDFC up by 1.79%, Mahindra & Mahindra up by 1.59%, TCS up by 1.58% and Infosys up by 1.26%, while Sterlite Industries down by 2.79%, Bajaj Auto down by 2.75%, Tata Power down by 2.68%, Tata Steel down 2.18% and GAIL down by 1.96% were the top losers on the index.

The top gainers on the BSE Sectoral space were, IT up 1.29%, TECk up 0.98%, Auto up 0.26% and Oil & Gas up 0.12%, while Power down 1.56%, Metal down 1.25%, Realty down 1.15%, Capital Goods down 0.89% and FMCG down 0.72% were top losers on the sectoral space.

Meanwhile, snapping eight months declining trend, India's exports rose at an annual rate of 0.82% at $25.58 billion in January, with imports too rising by 6.12% at $45.58 billion for the month, leaving a trade deficit of $19.99 billion. Export and imports stood at level of $25.37 billion and at $42.95 billion respectively in January, 2012. However, exports between April and January fell 4.86% to $239.68 billion as against $251.93 billion in the same month of the previous year.

Adding to the country's economic gloom and heightening worries about its trade and current account deficits, exports have fallen since last year as demand slowed from major sales destinations. Meanwhile, cumulative value of imports for the period April-January, 2012-13 was at $406.85 billion as against $406.82 billion registering a positive growth of 0.01% over the same period last year.

Optimistic on this data, Commerce Minister Anand Sharma said, the government is hopeful that exports in January will help close the trade gap. The trade deficit for April-January, 2012-13 was estimated at $167.16 billion much higher than the deficit of $154.89 billion during April -January, 2012.

He further added that gold imports are a matter of concern and a balanced approach is needed towards gold import. India, which imported about 750 tons of gold last year, with 60 percent of that through banks has already increased the import duty on gold, which now stands at 6%.

The S&P CNX Nifty touched a high and a low of 5,969.50 and 5,922.95 respectively.

The top gainers on the Nifty were HCL Tech up by 4.42%, Tata Motors up by 2.16%, HDFC up by 1.87%, ONGC up by 1.86% and M&M up by 1.73%.

The top losers of the index were Reliance Infra down by 3.53%, Tata Power down by 3.10%, Sesa Goa down by 2.96%, Bajaj Auto down by 2.95% and Power Grid down by 2.79%.

The European markets were trading mixed, France’s CAC 40 down by 0.23%, United Kingdom’s FTSE 100 down by 0.27% and Germany’s DAX up by 0.08%.

Asian markets ended mostly higher on Wednesday, after strong US corporate earnings. KOSPI Composite closed with strong gains as a firmer yen boosted South Korean exporters. Meanwhile investors were traded cautiously ahead of outcome of the G20 finance ministers meeting in Moscow beginning Friday. However, Japan's Nikkei went home with red mark with some weak earnings reports and stronger yen against dollar following a pledge by finance ministers from the world's major advanced economies to refrain from intentionally weakening their currencies.

Mainland Chinese markets, Hong Kong and Taiwanese were closed for the Lunar New Year holiday.