Markets recover after mild setback on improved February trade data

Indian equity markets are trading flat, after an early up move and a subsequent retreat to lower levels, amid alternate bouts of buying and selling. Markets sentiments were bucked up on improved trade data for February 2013. Meanwhile, country’s February exports rose by 4.25% from a year earlier to $26.3 billion, while imports rose 2.6% to $41.2 billion, leaving a trade deficit of $14.9 billion. The 50-share NSE Nifty continued to hover around 5,950 level, while 30-share BSE Sensex trading lower by 2.90 points. Investors were trading cautiously ahead of number of economic events, like industrial production data for January and RBI monetary policy. In currency markets, rupee depreciated against greenback, on continued dollar selling by banks and exporter. On sectoral front, metal, information technology and bank stocks were a bit subdued amid a mild bout of selling pressure. Healthcare, realty, power and oil stocks were finding some support. On the global front, Asian markets were trading mixed, beginning the week on a lackluster note, as investors considered the better-than-expected US job figures and disappointing China industrial data. Back home, the market breadth favoring positive trend; there were 1,240 shares on the gaining side against 1,160 shares on the losing side while 104 shares remain unchanged.

The BSE Sensex is currently trading at 19,680.33, down by 2.90 points or 0.01% after trading in a range of 19,737.13 and 19,640.38. There were 13 stocks advancing against 17 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34% and Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were, Realty up by 1.02%, Capital Goods up by 0.62%, Power up by 0.46%, Health Care up by 0.44% and FMCG up by 0.38%, while Metal down by 0.59%, IT down by 0.58%, TECk down by 0.46%, Bankex down by 0.11% and Auto down by 0.10% were the losers on the BSE.

The top gainers on the Sensex were Sun Pharma up by 1.80%, HDFC up by 1.72%, Mahindra & Mahindra up by 1.62%, Coal India up by 1.48% and Hindustan Unilever up by 1.20%.

On the flip side, Sterlite down by 1.44%, Jindal Steel down by 1.38%, TCS down by 1.21%, Hindalco down by 1.19% and Hero MotoCorp down by 1.03%, were the top losers on the Sensex.

Meanwhile, in evident proof of subdued income levels, rising cost of petrol amidst sluggish economy weighing on the demand, domestic passenger car sales contracted by 25.71% to 1, 58,513 units in February this year compared to 2, 13,362 units in the same month of 2012. Posting the biggest fall in more than 12 years and the fourth consecutive monthly slide, the industry clearly is now bracing for registering first annual sales fall in a decade.

According to the data released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in last month declined by 4.48% to 8,00,185 units from 8,37,743 units in the same month previous year. Meanwhile, total two-wheeler sales for February 2013 stood at 11, 12,289 units, down by 2.77% from 11, 43,982 units in the corresponding period of previous year.

Besides, the total sales of commercial vehicles declined by 11.06% to 68,388 units from 76,891 units in the year-ago period. Total sales of vehicles across categories too contracted by 5.45% to 14, 51,278 units in February 2013 as against 15, 34,910 units in the same month of 2012.

The CNX Nifty is currently trading at 5,948.50 up by 2.80 points or 0.05% after trading in a range of 5,961.80 and 5,935.65. There were 23 stocks advancing against 27 declines on the index.

The top gainers of the Nifty were Siemens up by 3.17%, Ranbaxy up by 1.96%, HDFC up by 1.94%, Sun Pharma up by 1.84% and M&M up by 1.55%.

On the flip side, Hindalco down by 1.33%, Sesa Goa down by 1.29%, Jindal Steel down by 1.28%, IDFC down by 1.19% and Bajaj Auto down by 1.15%, were the major losers on the index.

Asian equity indices were trading in mixed; Hang Seng rose 0.23%, Nikkei 225 strengthened 0.59%, Straits Times increased 0.20% and Taiwan Weighted added 0.29%.

On the flip side, Shanghai Composite slipped 0.11%, KLSE Composite dipped 0.10% and KOSPI Composite was down by 0.13% and Jakarta Composite was down by 0.09%.