Markets continue to trade lackluster in absence of positive cues; IIP, CPI data eyed

After reversing directions for couple of times in the session, benchmark equity indices are oscillating near their equator on account of prevailing caution ahead of release of key macro-economic data later in the evening, viz IIP and CPI, which have made investors finicky of investing into local equities. Further, absence of positive trigger amidst subdued regional counter parts are also contributing to the lackluster moves of Indian equity market. Although, off early lows, both Sensex and Nifty, are now trading sub 20,500 and 6,100 levels respectively. Meanwhile, on the global front, Asian shares were trading mixed, with investors turning their attention to the Chinese Communist Party policy meeting for clues to its economic agenda for the next decade.

Closer home, broader indices showing outperformance are trading up with gains of about half a percent. Benchmarks after dipping their head to day’s low and subsequently bouncing in green terrain, has yet again slipped below the neutral line in absence of any positive trigger which could take the markets higher. Sectorally, Metal, Auto and Power counters are the weak spell of trade, while Realty, Health Care and Fast Moving Consumer Goods counters are witnessing some traction. Meanwhile, besides the drubbing in Realty counter, Auto stocks ran out of steam after an industry body, SIAM forecasted India car sales to fall in the current financial year that ends in March, thereby marking a second straight year of decline, as high interest rates and a slowing economy force consumers to delay purchases. The overall market breadth on BSE is in the favour of declines which have thumped advances in the ratio of 1065:1056; while 124 shares remained unchanged.

The BSE Sensex is currently trading at 20476.51, down by 14.45 points or 0.07% after trading in a range of 20,584.22 and 20402.99. There were 14 stocks advancing against 16 declining on the index.

The broader indices were trading in green; with BSE Mid cap index was up by 0.45%, while Small cap index up by 0.20%.

The gaining sectoral indices on the BSE were Realty up by 1.72%, Healthcare up by 0.78%, FMCG up by 0.66%, Bankex up by 0.22%, and Capital Goods up by 0.19%. While, Metal down by 1.10%, Auto down by 0.69%, Power down by 0.52%, PSU down by 0.51%, and Oil & Gas down by 0.28% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco Inds up by 2.02%, Maruti Suzuki up by 1.91%, Sun Pharma up by 1.18%, Wipro up by 1.05%, and ITC up by 0.63%. On the flip side, SSLT down by 2.84%, Tata Motors down by 2.73%, Tata Steel down by 1.75%, ONGC down by 1.53%, and Coal India down by 1.07% were the top losers on the Sensex.

Meanwhile, as per the industry body Ficci survey, Indian manufacturing sector is likely to witness subdued growth in the October-December quarter of current fiscal particularly due to the concerns over high interest rates. The Ficci’s report, based on the survey of thirteen manufacturing industries,   has found that prevailing high cost of credit is impacting the margins of the manufacturing industries and the sector like automotive, capital goods and electronics are expected to witness sluggish growth in Q3 FY14. Presently, interest rate paid by the manufacturers ranges from 8 to 16 percent with average interest rate at around 12 percent per annum.

Meanwhile, the survey revealed that five out of thirteen sectors are likely to witness low growth (less than 5 percent). Two sectors such as leather and paper, are expected to have a strong growth of over 10 percent in Q3 2013-14 while remaining sectors are likely to witness moderate growth. Further, the investment into manufacturing sector is also likely to remain subdued in reported quarter as 72 percent respondents not having any plans for capacity additions for the next six months as compared to 74 percent respondents in the previous survey. Further, outlook on hiring people also looks miserable in manufacturing sector with over 75 percent of the respondents unlikely to hire additional workforce in next three months.

Meanwhile, the survey noted that demand conditions appear to be slightly better in Q3 2013-14 as 44 percent respondents reporting higher order books for the quarter under review as compared to 32 percent respondents in the previous quarter.

The CNX Nifty is currently trading at 6,077.80, down by 1 point or 0.02% after trading in a range of 6,108.70 and 6,054.25. There were 24 stocks advancing against 24 declining ones on the index, while 2 stocks remained unchanged.

The top gainers of the Nifty were Hindalco Inds up by 2.07%, kotak Bank up by 1.82%, Maruti Suzuki up by 1.80%, DLF up by 1.69%, and Ranbaxy up by 1.54%. On the flip side, SSLT down by 2.94%, Tata Motors down by 2.76%, Tata Steel down by 2.05%, ONGC down by 1.57%, and ACC down by 1.54% was the major loser on the index.

The Asian equity indices were trading mostly in green; Nikkei 225 up by 2.23%, Shanghai Composite up by 0.75%, Taiwan Weighted up by 0.16% , Straits Times up by 0.01% and Seoul Composite up by 0.92%. While, KLSE Composite down by 0.35%, Hang Seng down by 0.57% and Jakarta Composite down by 0.38%.