Benchmarks consolidate after recovering from intra-day’s low

After recovering from intra-day’s low, benchmark equity indices are trading in tight range as consolidation seems to be slowly creeping into the equity markets. Nevertheless, the positive start of European counterparts could lift the benchmarks higher. Benchmark 30-share index, trading higher with gains of close to 25 points, is oscillating above the 19,950 mark, while, widely followed, Nifty, trading a bit above its neutral line, is holding above the crucial 6,050 bastion. On the flip side, broader indices continue to outperform frontline equity indices.

On the global front, European shares got off to a positive start with ArcelorMittal in focus after the world's largest steelmaker posted forecast-beating earnings. While, Asian pacific shares eased on Friday, taking their cues from global equities which took a breather from recent rallies overnight, but Japanese equities soared to fresh five-year highs as the dollar's break above the symbolic 100 yen level underpinned sentiment.

Closer home, benchmark indices dropped to intra-day’s low in a knee jerk reaction to in-line estimates of March IIP numbers, but soon started recovering ground on account of buying at lower level. On the macro-front, registering third straight month of expansion, India's annual industrial output growth measured by index of industrial production (IIP) grew by 2.5% at 192.3 for the month of March 2013 higher than previous month’s growth figure of 0.6%, later revised to 0.5%, and in-line with street estimates of over 2% figure. Meanwhile, stocks from Consumer Durables, Auto and Public Sector undertaking (PSU) counters were supporting the uptrend of the markets, while stocks from Metal and Realty were restricting the gains. The overall market breadth on BSE is in favour of advances, which were currently outpacing declines in the ratio of 798:780: while 82 shares remain unchanged.

The BSE Sensex is currently trading at 19,967.42, up by 28.38 points or 0.14% after trading in a range of 20,039.35 and 19,908.80. There were 17 stocks advancing against 13 declines on the index.

The broader indices added more ground; the BSE Mid cap and Small cap index were trading higher by 0.24% and 0.41% respectively.

The top gaining sectoral indices on the BSE were, Consumer Durables up by 1.65%, Auto up by 1.59%, PSU up by 0.45%, Bankex up by 0.34% and Oil & Gas up by 0.33%, while Metal down by 0.24%, Realty down by 0.16% were the top losers on the BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.68%, Hero MotoCorp up by 2.63%, Mahindra & Mahindra up by 1.89%, ONGC up by 1.78% and Dr Reddys Lab up by 1.35%.

On the flip side, Jindal Steel down by 1.89%, Sun Pharma down by 1.58%, HDFC down by 1.41%, Coal India down by 1.38% and Cipla was down by 1.12% were the top losers on the Sensex.

Meanwhile, the proposed Mines Act 1952 (amendments) has been referred to the Group of Ministers (GoM) for consideration following members of the Cabinet expressed different views on making the Chief Executive or the Chairman responsible for mishaps as proposed in the Labour Ministry's bill.

As per the Mining Act 1952, in case of an accident, a clause in the Mining Act provides for heavy fines and long term imprisonment of managers of the mines for violation of safety norms. Therefore, the members are of the view that the issue should be left to the board to decide on whom to nominate for liability in case of an accident.  

The Bill also proposes to amend and consolidate the law relating to regulation of condition of work and welfare of persons employed in mines and for the matter connected therewith. The Act was last amended in 1983 and subsequent to the amendments, several developments in the area of technology, scale of operations, working environment and work practices in coal, non-coal and oil sector have taken place and thus forced the government to further amend it.

The CNX Nifty is currently trading at 6,054.70, up by 4.55 points or 0.08% after trading in a range of 6,079.80 and 6,045.60. There were 26 stocks advancing against 22 declines while 2 stocks remain unchanged on the index.

The top gainers of the Nifty were Maruti Suzuki up by 3.74%, Hero Moto Co up by 2.50%, IndusInd Bank up by 2.19%, M&M up by 1.88%.

On the flip side, PNB down by 2.06%, Jindal Steel down by 1.98%, Sun Pharma down by 1.61%, HDFC down by 1.49% and Coal India down by 1.42% were the major losers on the index.

Asian equity indices were trading mixed; Shanghai Composite rose 0.40%, KLSE Composite jumped 0.09%, Nikkei 225 soared 2.93% and Straits Times was up by 0.21%.

On the flip side, Hang Seng declined 0.11%, KOSPI Composite dropped 1.75%, Taiwan Weighted was down by 0.07% and Jakarta Composite decreased marginally 0.04%.

European shares got off to a positive start; with CAC 40 gaining by 0.82%, DAX rising by 0.51% and FTSE 100 adding 0.26% respectively.