Markets tread water tailing mostly lower Asian counterparts; Sensex holds above 20,850 level

Indian equity benchmarks paring most of their gains are just about floating in green, with slender gains, mirroring the fading optimism of regional counterparts that are now trading mostly lower on instilled caution about a possible bubble in stock markets fueled by easy monetary policy.

Local equity markets currently are trading sideways awaiting signs on when central bank will start reducing its purchases of government bonds and mortgage securities totaling $85 billion a month. Just managing to keep their head above water, while Sensex is oscillating above the psychological 20,850 level, Nifty is trading shy of 6,200 mark. Meanwhile, broader indices too paring most of their gains are just about trading above the equator.

Earlier in the session, investors’ sentiment got some support after Economic Affairs Secretary Arvind Mayaram underscored that the government was taking measures to provide a boost to economic growth.  Further, PMEAC Chairman C Rangarajan statement that country’s current account deficit (CAD) will be contained below target limit also added to the optimism.

Sectorally, Realty, Capital Goods and Oil & Gas counters were witnessing maximum traction, while Fast Moving Consumer Goods, Metal and Consumer Durables are undergoing massive drubbing. Meanwhile, Aviation stocks, viz Spicejet, Jet Air India, etc too are flying higher since early deals on news that the domestic airlines flew 50.08 lakh passengers in October this year, up by almost 10% over the 45.55 lakh passengers carried by them in the same period last year. The overall market breadth on BSE is in the favour of declines which are outpacing advances in the ratio of 1066:1062; while 155 shares remained unchanged.

The BSE Sensex is currently trading at 20862.92, up by 12.18 points or 0.06% after trading in a range of 20,934.40 and 20851.55. There were 14 stocks advancing against 16 declining on the index.

The broader indices too pared most of their gains; while BSE Mid cap index was up by 0.08%, Small cap index was hanging in green with gains of 0.06%.

The gaining sectoral indices on the BSE were Realty up by 0.99%, Capital Goods up by 0.96%, Oil and Gas up by 0.32%, Technology up by 0.22%, and Auto up by 0.11%. While, FMCG down by 0.43%, Metal down by 0.42%, Consumer Durables down by 0.38%, Healthcare down by 0.21%, and PSU down by 0.17%, were losing indices on BSE.

The top gainers on the Sensex were Hindalco Inds up by 3.07%, Maruti Suzuki up by 3.07%, Jindal Steel up by 2.15%, Gail India up by 1.79%, and Bharti Airtel up by 1.61%.

Meanwhile, in a temporary arrangement, the Ministry of Information & Broadcasting (I&B) has decided to grant an interim hike of 19% in the existing rates for the advertisements released by the Directorate of Audio-Visual Publicity (DAVP) in the print media, till a committee appointed by it, finalizes new rates.

I&B Minister Manish Tewari underscored that DAVP's print media advertisement policy mandates constitution of Rate Structure Committee (RSC) every three years for consideration of revision of rates. The Minister highlighted that while the rates recommended by sixth Rate Structure Committee (RSC) were effective for a period of three years up-to October 14 this year and the seventh RSC, which was constituted in the Ministry on May 31, would soon submit its recommendations.

He, however, added that the validity of last rate card was effective only upto October 14, 2013 and the Ministry had received representations for grant of interim relief to meet the pending revision of rate card. However, this proposal for grant of an interim hike was considered by the I&B Ministry in consultation with Finance ministry and concurrence of the Election Commission.

The CNX Nifty is currently trading at 6,191.70, up by 2.70 points or 0.04% after trading in a range of 6,212.40 and 6,186.15. There were 24 stocks advancing against 26 declining on the index.

The top gainers of the Nifty were Hindalco Inds up by 3.11%, Maruti Suzuki up by 2.93%, Jindal Steel up by 2.02%, GAIL up by 1.82%, and Bharti Airtel up by 1.55%. On the flip side, SSLT down by 2.76%, Dr. Reddy’s Lab down by 1.21%, BPCL down by 1.18%, HDFC Bank down by 1.17%, and Bajaj Auto down by 1.11%, were the major losers on the index.

The Asian equity indices were trading mixed; Taiwan Weighted up by 0.84%, Seoul Composite surged 1.04%, KLSE Composite surged 1.03%. On the flip side, Shanghai Composite down by 0.26%, Hang Seng edged lower by 0.02%, Straits Times declined 0.20%, Jakarta Composite slid by 0.11%, and Nikkei 225 shed 0.25%.