Markets edge higher even as US orders shutdown

Indian equity benchmarks extended early gains and reached at their intra-day high level in the afternoon session even as after the US government decided govt shutdown for the first time in 17 years. Market edged higher on the back of buying witnessed in blue chip stocks such as BHEL, Maruti Suzuki and HDFC Bank as investors’ sentiments got a boost after the eight core industries posted a 7-month higher growth rate of 3.7 percent in August mainly on the back of strong performance of power, cement, steel and fertiliser sectors. Further, gain in the rupee value also added to the optimistic sentiments. Investors hope that current account deficit CAD, which widened to 4.9% of GDP in the first quarter, is likely to come down in the subsequent quarters as gold imports restrictions imposed by the government has started yielding results. On sectoral front, auto stocks were trading up by over 1 percent higher on BSE on expectation of higher sales in September. Buying was also witnessed in capital goods, banking and realty stocks.

On global front, most of the Asian equity indices were trading in green with Japanese index Nikki 225 up by 0.20%. Back home, the market breadth remained positive, out of 1,894 stocks traded, 1,036 stocks advanced, while 759 stocks declined on the BSE.   

The BSE Sensex is currently trading at 19,463.90 up by 84.13 points or 0.43% after trading in a range of 19,471.59 and 19,264.72. There were only 20 stocks advancing against 10 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.35%, while Small cap index up by 0.46%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.53%, Bankex up by 1.42%, Auto up by 1.16% and Realty up by 1.01%. While, Metal down by 1.06%, Power down by 0.53%, PSU down by 0.43% and FMCG down by 0.41% were remained the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 3.57%, Maruti Suzuki up by 2.80%, HDFC Bank up by 1.82%, Tata Motors up by 1.72% and SBI up by 1.44%. On the flip side, Tata Power down by 2.90%, Sesa Goa down by 2.55%, NTPC down by 2.23%, Hindustan Unilever down by 1.94% and Jindal Steel down by 1.57% were the only losers on the Sensex.

Meanwhile, in a big sign of relief to Indian policymakers, eight core industries posted a 7-month high growth rate of 3.7 percent in August mainly on the back of strong performance of power, cement, steel and fertiliser sectors. The eight industries - crude oil, petroleum refinery products, natural gas, fertilisers, coal, electricity, cement and finished steel - have a weightage of 37.9% in the overall Index of Industrial Production (IIP). However, growth of the core sectors was lower as compared to 6.1 percent recorded in the same month last year.

Petroleum refinery production, representing 5.94% weight in IIP index grew by 4.9% in August, 2013 over August 2012. Cumulative growth of Petroleum refinery production during April-August, 2013-14 was at 4.8% over the index of corresponding period of previous year. Electricity generation having 10.32% weight in index registered a growth of 6.7% in August, 2013 over the same month of corresponding period. During April to August 2013-14 it recorded a growth of 4.1% over the index of corresponding period of previous year.

Fertilizer production with weightage of 1.25% in IIP index registered a growth of 1.7% in August, 2013 over August, 2012. The cumulative index of Fertilizer production during April to August 2013-14 grew at 1.8% on YoY basis.

Steel and Cement sectors having weightage of 6.68% and 2.41% respectively in IIP index, registered a growth of 4.3% and 5.5% respectively, in the month under review over August 2012. In cumulative terms, steel and cement production was 4.1 % and 3.2% during April to August 2013-14.

Crude oil, with weightage of 5.22% in index moderated by 1.5% in August, 2013 over August, 2012, while its cumulative index during April to August 2013-14 moderated by 1.6% over corresponding period of previous year. Further, coal production with weightage of 4.38% in index registered a growth of 5.5% in August, 2013 over the same period of corresponding period. However, on cumulative basis, growth during April-August, 2013-14 was increased by 0.5% compared to April- August 2012-13.

Natural Gas production having weightage 1.71% in IIP index declined by 16.1% in August 2013 as compared to the month in August, 2012. The cumulative index for Natural Gas production during April to August 2013-14 declined by 17.0% over corresponding period of previous year.

The CNX Nifty is currently trading at 5,757.50 up by 22.20 points or 0.39% after trading in a range of 5,762.40 and 5,700.95. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were BHEL up by 3.57%, DLF up by 3.01%, Ranbaxy up by 2.95%, Maruti Suzuki up by 2.75% and Indusin Bank up by 2.32%. On the flip side, Sesa Goa down by 2.99%, Tata Power down by 2.90%, BPCL down by 2.73%, Ambuja Cement down by 2.11% and Hindustan Unilever down by 1.98% were the major losers on the index.

The most of the Asian equity indices were trading in green; Straits Times up by 0.40%, Jakarta Composite up by 1.40%, Seoul Composite up by 0.10%, Taiwan Weighted up by 0.16%, and Nikki 225 up by 0.20%. While, KLSE Composite down by 0.13%.