Benchmarks oscillate in narrow range in absence of fresh triggers

After recovering from early set-back, benchmark equity indices continue to trade in narrow range, lacking any fresh positive domestic triggers which could take the markets higher. Although European markets have got off to a positive start, the mood at Indian equity markets more or less remains cautious, suggesting that investors’ are not that confident to go bullish on risky assets. Subdued pair of macro-economic data is also restricting the further uptrend of the markets. While, core sector data slowed to 4 month low of 0.1% in June, slowdown in factory activity deepened in July as order books shrank by the most in over four years, taking the HSBC Manufacturing Purchasing Managers’ Index (PMI), compiled by Markit, lower to 50.1 in July from 50.3 in June. Nevertheless, support at lower levels is mainly keeping the Sensex above the water, beyond the crucial 19,350 level, while Nifty despite trading with loss has held onto its crucial 5700 level. Broader indices, swaying in their own mood since early deals, are trading with a cut of over 3 /4 of a percent.

On the global front, borrowing positive cues from Asian counterparts, European markets have edged higher on Wednesday, on back of robust data out of the United States and Europe as well as strong earnings releases from major companies.

Closer home, stocks from only Fast Moving Consumer Goods and HealthCare managed to keep their head above water, while all the sectoral indices on BSE edged lower. Nevertheless, major losers were stocks from Realty, Oil & Gas and Public Sector Undertaking (PSU) counters. Oil Marketing Companies (OMCs) are trading lower even after petrol and diesel price were hiked by 70 paise and 50 paise a litre respectively. The increase in rates, which are excluding local sales tax or VAT, will be effective from midnight today, 1 August 2013. The overall market breadth on BSE is in the favour of declines which have thumped advances in the ratio of 1241:661; while 119 shares remained unchanged.

The BSE Sensex is currently trading at 19373.16, up by 27.46 points or 0.14% after trading in a range of 19569.20 and 19170.46. There were 17 stocks advancing against 13 declines on the index.

The broader indices were trading in red; the BSE Mid and Small cap indices were lower by 1.35% and 0.85% respectively.

The top gaining sectoral indices on the BSE were, FMCG up by 1.08% and Healthcare up by 0.27%. While Realty down by 2.71%, Oil and gas down by 1.99%, PSU down by 1.73%, Consumer Durables down by 1.48% and Auto down by 0.97% were the top losers indices on the BSE.

The top gainers on the Sensex were Hindustan Unilever up by 3.71%, HDFC Bank up by 2.45%, HDFC up by 2.36%, Jindal Steel up by 2.35% and Sun Pharma up by 1.34%. On the flip side, M&M down by 3.31%, ONGC down by 3.28%, BHEL down by 3.13%, SBI up by 1.75%, Tata Steel down by 1.72% were the top losers on the Sensex.

Meanwhile, in a move to enhance the country’s exports, the government has decided to raise the rate of interest subsidy for exporters to 3% and widened the coverage of the scheme to cover more sectors. Presently, the interest subvention, a kind of interest subsidy where the a fixed percent of interest on loan taken is waived off, is at 2 % for exporters. 

Commerce and Industry Minister Anand Sharma said that the government is considering various schemes for developing export infrastructure including raising plan allocation for market access initiative (MAI), market development assistance and central assistance to states and other allied activities schemes. By adding further he said that the government is making available the required resources to clear all claims of the exporters and the provisions are being made to ensure that these exporters’ claims are settled forthwith. 

Commerce Minister has also called a meeting of Board of Trade (BoT) on August 27 to consider more steps to give a boost to exports which is facing the brunt of global slowdown. India's merchandise export declined at accelerated pace of 4.6% to $23.79 billion in June 2013, after 1.1% fall recorded in May 2013. However, the merchandise imports also declined 0.4% to $36.04 billion in June 2013, snapping the surge of last two-months. The decline in imports helped trade deficit to narrow to $12.25 billion in June 2013 from $20.14 billion in May 2013.  The CNX Nifty is currently trading at 5,739.75, down by 2.25 points or 0.04% after trading in a range of 5,808.50 and 5,676.85. There were 24 stocks advancing against 26 declines on the index.

The top gainers of the Nifty were Hindustan Unilever up by 3.80%, Jindal Steel up by 2.58%, Ambuja Cements up by 2.57%, HDFC up by 2.22% and HDFC Bank up by 2.16%. On the flip side, JP Associate down by 9.68%, Ranbaxy down by 7.38%, DLF down by 4.91%, Bank of Baroda down by 4.63% and PNB down by 4.53% were the major losers on the index.

Most Asian equity indices were trading in green; Shanghai Composite up by 1.68%, Hang Seng up by 0.79%, Straits Times down advanced 0.55%, Nikkei 225 up by 2.47%, KLSE Composite gained 0.46%, Seoul Composite up by 0.35%, While Taiwan Weighted was down by 0.64%, Jakarta Composite down by 0.04%.

European markets got off to a positive start; with CAC 40 adding 0.43%, DAX rising by 0.06% and FTSE 100 advancing 0.31%.