Market reverses early losses to trade in green

Indian markets have started showing diverse trend to the global markets on Wednesday; a day when global markets have lost traction on concern that US Federal Reserve will soon begin scaling down its asset buying program, the Indian markets after a gap-down start, recovered within few minutes. Though, there was not much buying support at the higher levels, still the major indices were trying to hold the green forte. Rupee after seven days of decline showed some sign of recovery on speculated RBI intervention, however the mood remained somber, as driven by food prices, the annual consumer price inflation quickened to 10.09 percent in October from 9.84 percent in September.  Also, IIP for September grew 2% compared to a contraction of by 0.7% in the corresponding period last year but was lower than expected 3%. Back on street, the mood is still not firm with broader indices slipping into red, while on sectoral front rate sensitive banking was taking the maximum hit, followed by capital goods, PSU and realty, while the healthcare and auto stocks were trying to hold the markets in green.

The broader indices were trading subdued, while the market breadth on the BSE was negative; there were 605 shares on the losing side against 525 shares on the losing side while 52 shares remain unchanged.

The BSE Sensex opened at 20248.52; about 33.39 points higher compared to its previous closing of 20281.91, and has touched a high and a low of 20322.53 and 20224.19 respectively. The index is currently trading at 20286.94, up by 5.03 points or 0.02%. There were 12 stocks advancing against 18 declines on the index.

The broader indices got off to a subdued start; with BSE Mid cap index now trading lower by 0.07% and Small cap index lower by 0.19%

The top gaining sectoral indices on the BSE were, Health Care up by 0.79%, Auto up by 0.69%, TECK up by 0.46%, Information Technology up by 0.35% and Consumer Durables up by 0.23%, while Bankex down by 0.67%, Realty down by 0.49%, Capital Goods down by 0.41%, PSU down by 0.35% and Metal down by 0.27% were the top losers on the sectoral index.

The top gainers on the Sensex were Sun Pharma up by 3.22%, Tata Motors up by 1.83%, BHEL up by 1.33%, Tata Steel up by 1.18% and M&M up by 0.77%. On the flip side, SSLT  down by 1.41%, L&T down by 1.11%, Cipla down by 1.06%, Tata Power down by 0.95% and Coal India down by 0.91% were the top losers on the Sensex.

Meanwhile, in a recipe of another rate hike, the provisional annual inflation rate based on all India general Consumer Price Index (CPI) (Combined) for October 2013 on point to point basis (October 2013 over October 2012) accelerated to 10.09%, higher than expectation of over 10% and much higher as compared to 9.84% for the previous month of September 2013. The corresponding provisional inflation rates for rural and urban areas for October 2013 stood at 10.11% and 10.20% respectively, compared to 9.71% and 9.93% respectively in September. 

The surge in retail Inflation data is mainly on account of spike up of food inflation, which accelerated to 12.56% against 11.44% in September. Meanwhile, Fuel and Light; Clothing, bedding and foot-ware segment registered growth of 6.97% and 9.18% over a period ago.

The data has added to the concern of policy makers, which are already struggling to combat inflation, thereby hinting that 25 basis points hike would be in store for markets, as Reserve Bank of India gears up for next monetary policy review in mid-December. Reacting on the higher-than-expected CPI number, C Rangarajan of PMEAC too has said, 'CPI at over 10% is a disturbing sign.

The CNX Nifty opened at 5,998.85; about 19.20 points lower as compared to its previous closing of 6,018.05, and has touched a high and a low of 6,025.65 and 5,994.25respectively.

The index is currently trading at 6,012.45, down by 5.60 points or 0.09%. There were 20 stocks advancing against 30 declines on the index.

The top gainers of the Nifty were Sun Pharma up by 3.23%, Tata Motors up by 1.93%, Tata Steel up by 1.16%, BHEL up by 1.14% and HCL Technologies up by 0.74%. On the flip side, Axis Bank down by 1.89%, Asian paints down by 1.76%, IDFC down by 1.52%, DLF down by 1.11% and L&T down by 1.07% were the top losers on the index.

The Asian equity indices were languishing in red; Shanghai Composite down by 17.09 points or 0.80% to 2,109.68, Nikkei 225 down by 61.89 points or 0.43% to 14,532.09, Seoul Composite slid  25.47 points or 1.27% to 1,971.34, Taiwan Weighted surrendered 60.38 points or 0.74% to trade at 8,135.62, Hang Seng lost 296.11 points or 1.29% to 22,605.30, KLSE Composite declined by 7.93 points or 0.44% to 1,786.87, Jakarta Composite was down by 83.77 points or 1.92% to 4,299.26, and Straits Times was down by 12.57 points or 0.40% to 3,168.22.