Benchmarks trade flat in early deals on Friday

Key domestic benchmarks are trading absolutely flat in the early deals on Friday with both the gauges hovering near their neutral line in absence of any major trigger. Global cues remain mixed as the US markets turned lower overnight, though there was a pullback in last but a disappointing batch of US economic data weighed on the markets while, most of the Asian equity indices were trading in green at this point of time with major gauges gaining strength after a flat start as investors opted to pile up positions in beaten down but fundamentally strong stocks.

Back home, the Prime Minister’s Office (PMO) has asked the Planning Commission to formulate a draft Bill on Dispute Resolution in Public Contracts in consultation with all stakeholders and Ministries. However, stocks of local drug manufacturer hit rock bottom after the government issued the long-pending drug price control order, paving the way for the implementation of national pharmaceutical pricing policy, which will lead to a reduction of an average 20-25% in medicine prices.

On the sectoral front, software witnessed the maximum gain in trade followed by realty and technology while, consumer durables, healthcare and banking remained the top losers on the BSE sectoral space. The broader indices were trading slightly in green while, the market breadth on the BSE was evenly divided; there were 626 shares on the gaining side against 627 shares on the losing side while 67 shares remain unchanged.

The BSE Sensex opened at 20,267.60; about 20 points higher compared to its previous closing of 20,247.33, and has touched a high and a low of 20,308.97 and 20,203.76 respectively.

The index is currently trading at 20,248.28, up by 0.95 points. There were 12 stocks advancing against 18 declines on the index.

The overall market breadth has made a strong start with 48.21% stocks advancing against 46.80% declines. The broader indices were trading in green; the BSE Mid cap and Small cap indices up by 0.15% and 0.16% respectively. 

The top gaining sectoral indices on the BSE were, IT up by 0.90%, Realty up by 0.75%, Teck up by 0.59%, FMCG up by 0.59% and Power up by 0.33% while, Consumer Durables down by 0.71%, Health Care down by 0.60%, Bankex down by 0.42%, Capital Goods down by 0.25% and Oil & Gas down by 0.04% were the only losers on the sectoral index.

The top gainers on the Sensex were Tata Motors up by 1.39%, TCS up by 1.13%, Infosys up by 1.07%, Tata Power up by 0.75% and NTPC up by 0.58%.

On the flip side, Dr Reddys Lab was down by 1.41%, Cipla was down by 1.10%, HDFC Bank was down by 1.09%, HDFC was down by 0.96% and  Gail India was down by 0.81% were the top losers on the Sensex.

Meanwhile, a six-member panel headed by chief economic advisor Raghuram Rajan has been assigned by the Government for a task of evolving a Composite Development Index. Bihar chief minister Nitish Kumar has been demanding for special category status which may appear to be tailor-made for Bihar that lags the national average on per capita income and other human development indices like education and health.

Chief Ministers of UP and West Bengal, Akhilesh Yadav and Mamata Banerjee have also asked for favourable assistance from the Centre. Earlier, the measure, which evaluated claims for special category status, comprised proximity to international border, poor infrastructure, sparse population and hilly terrain, was a hindrance for Bihar and several states, including UP, West Bengal, Rajasthan and Odisha

Kumar has campaigned for special status vigorously, and is set to turn it into his principal plank for the 2014 polls in the hope of crafting a theme which cuts across the divisions of caste in Bihar. 

The CNX Nifty opened at 6,172.95; about 3 points higher as compared to its previous closing of 6,169.90, and has touched a high and a low of 6,188.60 and 6,153.85 respectively.

The index is currently trading at 6,167.70, down by 2.20 points or 0.04%. There were 21 stocks advancing against 27 declines and 2 stocks remain unchanged on the index.

The top gainers of the Nifty were Cairn up by 1.87%, Ambuja Cements up by 1.66%, Tata Motors up by 1.32%, UltraTech Cement up by 1.29% and TCS up by 1.16%.

On the flip side, IndusInd Bank down by 2.01%, Dr Reddy's Laboratories down by 1.60%, Ranbaxy Laboratories down by 1.58%, Cipla down by 1.10% and HDFC Bank down by 1.09%, were the major losers on the index.

Most of the Asian equity indices were trading in green; Shanghai Composite rose 2.95 points or 0.13% to 2,254.75, Jakarta Composite surged 29.06 points or 0.57% to 5,107.74, KLSE Composite increased 1.59 points or 0.09% to 1,768.31, Nikkei 225 added 37.27 points or 0.25% to 15,074.51 and Taiwan Weighted was up by 3.73 points or 0.04% to 8,393.78.

On the flip side, Straits Times was down by 2.85 points or 0.08% to 3,449.43.

Markets in Hong Kong and South Korea are closed for holidays.