Post Session: Quick Review

It turned out to be flat closing yet again for the bourses at Dalal Street after a choppy session of trade, which in absence of any positive trigger, failed to gain any traction, with Sensex ending the session down in red. Market adopted a wait and watch approach ahead of September's non-farm payrolls data of US, due to release later in the evening, which is likely to offer clues on the strength of the economic recovery and on how long the Fed might maintain its easy policy stance. Local equity markets, after recovering in green for couple of times, failed to maintain fervor as vindictive bears fought back with vigor. At close, both Sensex and Nifty ended near their previous closing level, above psychological 20,850 and 6,200 mark respectively. Meanwhile, broader indices outperforming the larger peers by fat margins, ended with gains of over half a percent.

On the global front, Asian shares made a mixed closing as investors hedged their bets in case the delayed US payrolls report for September was stronger than expected. On the other hand, European shares were trading mostly negative as investors awaited delayed US jobs data, some suspecting that this month’s acrimonious budget tussle in Washington will have diluted their value.

Closer home, in sector specific activities, Power stocks in demand on renewed buying activities. Following it were the stocks of Capital Goods and Public Sector Undertaking (PSU) counters.  Majority of the state-run banks spiked up on the reports that government earmarked Rs 14,000 crore for capital infusion in the public sector banks during the current fiscal. Besides, sugar stocks continued their bull run for the second consecutive day, on report that sugar production dropped by 4.5% to 25.14 million tonnes in 2012-13, nevertheless sufficient enough to fulfill domestic consumption, which grew by 3.6% to 22.8 million tonnes in 2012-13 over previous year. Banking stocks tied up some gains after the industry body in their pre-policy meeting with the RBI governor, Raghuram Rajan, demanded announcement that there would be no further tightening and the Central Bank would start to move to a more accommodative monetary stance. Meanwhile, most of the earnings reported today were encouraging, Yes Bank rose over 4% on reporting 21.3% rise in its quarter ended net profit of Rs 371.1 crore on the back higher interest income and growth in non-interest income. Rallis India too rallied over 2% on reporting 21.42% rise in consolidated net profit at Rs 74.75 crore.

The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1497: 1042, while 134 scrips remained unchanged. (Provisional)The BSE Sensex lost 23.56 points or 0.11% to settle at 20870.33.The index touched a high and a low of 20948.91 and 20810.25 respectively. Among the 30-share Sensex, 13 stocks gained, while 17 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 0.66% and 1.13% respectively. (Provisional)

On the BSE Sectoral front, Power up by 1.77%, Capital Goods up by 1.25%, PSU up by 0.78%, IT up by 0.47% and Teck up by 0.39% were the top gainers, while Consumer Durables down by 1.01%, Auto down by 0.54%, Oil & Gas down by 0.42%, Realty down by 0.23% and FMCG down by 0.01% were the only losers in the space. (Provisional)

The top gainers on the Sensex were Tata Power up by 2.82%, Sun Pharma up by 2.10%, Coal India up by 1.91%, Gail India up by 1.83% and Wipro up by 1.71%, while, Hindalco Industries down by 1.86%, Mahindra & Mahindra down by 1.48%, RIL down by 1.37%, HDFC down by 1.13% and Hero MotoCorp down by 1.32% were the only losers in the index. (Provisional)

Meanwhile, following the Deputy Chairman of the Planning Commission and echoing the government’s intentions, the Chairman of the Economic Advisory Council to Prime Minister (PMEAC) C Rangarajan has said that the Current Account Deficit (CAD) will go down well below $70 billion for the FY13-14.

Rangarajan pointing to the present trend in exports and imports said that if it continues, the overall CAD will reduce lower than $70 billion or 3.8% of the GDP. Further, noting the Indian rupee over the last few weeks had remained stable at around 61-62 against the US dollar, he said the rupee was well corrected for inflation differential.

The PMEAC chairman had earlier expressed optimism that India’s GDP growth would touch 5%-5.5% this year, as monsoon has been good this year leading to rise in agricultural production and pick up in rural demand and the good monsoon will also lead to improved exports figures.   India VIX, a gauge for markets short term expectation of volatility lost 1.09% at 19.96 from its previous close of 20.18 on Monday. (Provisional)

The CNX Nifty lost 2.15 points or 0.03% to settle at 6,202.80. The index touched high and low of 6,220.10 and 6,181.80 respectively. Out of the 50 stocks on the Nifty, 24 ended in the green, while 25 ended in the red and one stock remains unchanged.

The major gainers of the Nifty were Tata Power up 2.75%, HCL Tech up by 2.72%, Power Grid up by 2.46%, Axis Bank up by 2.05% and Gail up by 2.03%. The key losers were Hindalco down by 1.82%, Ranbaxy down by 1.45%, Hero MotoCorp down by 1.42%, M&M down by 1.41% and DLF down by 1.20%. (Provisional)

Most of the European markets were trading in red with, France’s CAC 40 down by 0.06% and Germany’s DAX down by 0.07%, while the United Kingdom’s FTSE 100 up by 0.14%.

The Asian markets concluded Tuesday’s trade on a mixed note ahead of important US jobs data. There was also some weakness in Hong Kong-listed Chinese developers, after data showed that new home prices rose on year in September in 69 of 70 cities. Average prices of new homes in 70 Chinese cities in September rose to another fresh high, spurred by price gains in major cities that concern local officials. For the eighth consecutive month, growth in median home prices rose in September from year-ago levels, after a turnaround that began in January. Prices were up in 69 of the 70 cities in September, unchanged from August. The growth in individual income tax and property transaction tax has contributed to a faster rise in China’s tax revenue in the first three quarters of this year despite weak import tariffs, the Ministry of Finance stated.

Taiwan’s export orders in September grew 2 percent year on year, the third monthly rise in succession, on strong European and US demand for smartphones, the island’s authorities stated. Export orders, which are filed to manufacturers one or two months ahead of delivery, are a key sign for the island’s export-reliant economy. The September figure came in at $38.4 billion, following a 0.5 percent rise in July and August.