Market manages a green start after five days of beating

Indian markets overcoming the sluggishness of last five sessions have made a good start on Tuesday mornings. Though, profit booking is still persisting, restricting markets from a bigger upmove, with traders opting to remain on sidelines and booking every opportunity of gains ahead of important macro data announcements later in the day. Index of industrial production (IIP) and CPI inflation data are scheduled to be announced after the market hours, while the CPI is placed on the higher side at around 10%, there might be some improvement in the overall IIP data for the month of September, given the strong growth in core sector. Traders were getting support with the good export data announced yesterday, exports rose by 13.47 percent to $ 27.27 billion in October. Meanwhile, cheering the rise in exports, India Inc has said that the turnaround was on account of rebound in US and European economies and urged the Government to restore duty drawback rates to bring down the trade deficit. Sectorally rate sensitive realty has taken the lead, rejoicing the Maharashtra state government’s clearing all hurdles before the Navi Mumbai International Airport project. However, metal, auto and PSU were dragging the markets, while the broader markets after a day of pause are once again outperforming the benchmarks.

The broader indices too were trading with traction, while the market breadth on the BSE was positive; there were 716 shares on the gaining side against 491 shares on the losing side while 46 shares remain unchanged.

The BSE Sensex opened at 20510.31; about 20 points higher compared to its previous closing of 20490.96, and has touched a high and a low of 20584.22 and 20485.74 respectively.

The index is currently trading at 20516.05, up by 25.09 points or 0.12%. There were 16 stocks advancing against 14 declines on the index.

The overall market breadth has made a strong start with 56.04% stocks advancing against 40.05% declines. The broader indices too were trading in green; the BSE Mid cap index up by 0.46% and Small cap index up 0.35%. 

The top gaining sectoral indices on the BSE were, Realty up by 1.73%, Capital Goods up by 0.69%, FMCG up by 0.59%, IT up by 0.54% and Teck up by 0.53%, while Metal down by 0.93%, Auto down by 0.60%, PSU down by 0.30%, Power down by 0.17% and Consumer Durables down by 0.12% were the top losers on the sectoral index.

The top gainers on the Sensex were Hindalco Industries up by 2.02%, Wipro up by 1.57%, Maruti Suzuki up by 1.07%, ITC up by 0.93% and L&T up by 0.82%. On the flip side, SSLT  was down by 2.24%, Tata Motors was down by 2.00%, Jindal Steel was down by 1.75%, Coal India was down by 1.18% and Tata Steel was down by 1.07% were the top losers on the Sensex.

Meanwhile, after falling to a two-and-a-half-year low the previous month, India's trade deficit widened to $10.56 billion in October against $6.7 billion in September as higher demand for oil and gold pushed up imports. However, that is unlikely to worry the authorities as although the gap widened from that in September, it remained way below last year’s level, when the gap was at $20.21 billion.

However, in a positive sign, exports rose year-over-year (Y-o-Y) for the fourth straight month at a double-digit pace, at $27.27 billion, up 13.47% from October 2012 and almost the same as September's $27.68 billion. On the other hand, imports shrank to $37.83 billion against $44.24 billion a year earlier. However, gold and silver imports for the month crept higher at $1.3 billion from $0.8 billion in September, but was way lower than $6.8 billion a year ago. Further, even oil imports rose to $15 billion in October from $13.19 billion in September due to rise in fuel consumption.

India's ballooning trade deficit has been a key contributor of Current-Account Deficit, which widened to a record 4.8% of Gross Domestic Product (GDP) in the last fiscal year and in turn weighed on the rupee currency, raising concerns on how the country would manage to finance the current-account shortfall once the U.S. Federal Reserve begins unwinding its easy-money policies. However, the government in the past has taken slew of measures to clamp down its gold imports as well boost exports, which in turn has brought back the trade deficit to manageable levels. Nevertheless, with the rise in gold imports again, Economist Pronob Sen underscored that although the core gold demand will continue, higher exports will also remain sustainable on lower base.

The CNX Nifty opened at 6,087.25; about r point higher as compared to its previous closing of 6,078.80, and has touched a high and a low of 6,108.70 and 6,078.40 respectively.

The index is currently trading at 6,085.45, up by 6.65 points or 0.11%. There were 26 stocks advancing against 24 declines on the index.

The top gainers of the Nifty were Hindalco up by 1.75%, DLF up by 1.65%, IDFC up by 1.36%, Kotak Bank up by 1.26% and Cairn up by 1.19%. On the flip side, SSLT down by 2.47% Tata Motors down by 2.09%, Jindal Steel down by 1.54%, Bharti Airtel down by 1.23% and Tata Steel down by 1.05% were the top losers on the index.

The Asian equity indices were trading mixed; Shanghai Composite was up by 5.31 points or 0.25% to 2,114.79, Nikkei 225 surged by 240.72 points or 1.69% to 14,510.56, Seoul Composite was up by 18.97 points or 0.96% to 1,996.12 and Taiwan Weighted gained 15.28 points or 0.19% to 8,196.39.

On the other hand, Hang Seng lost 156.43 points or 0.68% to 22,913.42, KLSE Composite declined by 6.46 points or 0.36% to 1,797.75, Jakarta Composite was down by 20.95 points or 0.47% to 4,421.33, and Straits Times was down by 0.91 points or 0.03% to 3,185.57.