Benchmarks remain flat with positive bias ahead of European markets opening

Indian equity markets, in the choppy and highly range-bound session of trade, continued trading flat but with positive bias ahead of the opening of European markets. Both Sensex and Nifty were holding above the crucial 20,350 and 6,050 bastions respectively in the positive territory. Meanwhile, broader indices continuing degree of outperformance were trading up with gains in the range of 0.30%-0.50%. Sentiments were upbeat after Central Statistics Office (CSO), pegged economic growth rate for 2013-14 at 4.9, which is higher against 4.5 percent in 2012-13 and also tad higher than the general expectation of a growth of 4.7-4.8 percent, while the rise of 113,000 US payrolls fell well short of a forecast increase of 185,000, not bad enough to sway the Federal Reserve from steadily winding down its bond-buying stimulus.

On the global front, Most Asian markets made guarded gains on Monday, encouraged with Wall Street was able to weather a seemingly disappointing US jobs report, though there was more than enough event risk ahead to keep investors cautious.

Closer home, sectorally, Realty, Consumer Durables and Healthcare counters were the notable gainers of the session, while TECK, FMCG and Information Technology counters were the prominent losers. FMCG shares witnessed profit taking ahead of consumer price inflation data as higher inflation reduces the purchasing power of consumers, while Information Technology shares witnessed drubbing on Rupee’s appreciation. Furthermore, telecom shares remained under pressure amid concerns of rising acquisition costs of spectrum. The overall market breadth on BSE is in the favour of declines in the ratio of 1194:930; while 137 shares remained unchanged.

The BSE Sensex is currently trading at 20381.44 up by 4.88 points or 0.02% after trading in a range of 20,434.50 and 20,366.15. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices continued trading in fine fettle; the BSE Mid cap index was up by 0.31%, while Small cap index up by 0.54%.

The gaining sectoral indices on the BSE were Realty up by 2.05%, Consumer Durables up by 1.57%, Healthcare up by 0.98%, Capital Goods up by 0.81%, Oil and Gas up by 0.57%. While, Teck down by 0.47%, FMCG down by 0.33%, IT down by 0.22%, Bankex down by 0.09% and Power down by 0.04% were the losing indices on BSE.   

The top gainers on the Sensex were Dr Reddy’s Lab up by 2.05%, Sun Pharma up by 1.98%, Tata Motors up by 1.27%, L&T up by 1.22% and RIL up by 1.11%. On the flip side, Gail India down by 1.88%, HUL down by 1.85%, TCS down by 1.84%, Bharti Airtel down by 1.82%, and SSLT down by 0.89%.

Meanwhile, adding optimism to the economy’s advanced growth estimate by the Central Statistics Office (CSO), the Prime Minister's Economic Advisory Council Chairman (PMEAC) C Rangarajan has stated that the decline in Indian economic growth has bottomed out and there is probability that gross domestic product (GDP) growth figure for 2013-14 will be revised upwards. PMEAC expects Indian economic growth at around 5.3 percent for the current fiscal.

The CSO pegged economic growth rate for 2013-14 at 4.9 percent which was tad higher than the general expectation of a growth of 4.7-4.8 percent. Rangarajan further added that as per the CSO estimate, the growth in second quarter of current fiscal will be more than 5 percent as Indian economy grew by 4.6 percent in the April-September period. Agriculture sector is likely to add significantly to country’s economic growth as CSO has projected a growth rate of 4.6 percent in agriculture and allied sectors in current fiscal. 

Indian economy’s growth slowed down to a decade low of 4.5 percent in the previous fiscal on account of low investment, weak domestic demand, rupee depreciation and global economic turmoil. Rising inflation too has become a hurdle for Indian economic growth as it has been eroding consumers and business confidence in the country.

The CNX Nifty is currently trading at 6,064.00, up by 0.80 points or 0.01% after trading in a range of 6,083.05 and 6,051.30. There were only 27 stocks advancing against 22 declining on the index, while 1 share remained unchanged.

The top gainers of the Nifty were DLF up by 4.20%, Dr Reddy’s Lab up by 1.94%, Sun Pharma and IDFC were up by 1.92% and Tata Motors up by 1.55. On the flip side, HUL down by 1.97%, Gail down by 1.94%, TCS down by 1.86%, Bharti Airtel down by 1.77% and Kotal Bank down by 1.50% were the major losers on the index.

 The Asian equity indices were trading in green; Seoul Composite up by 0.04%, Nikkei 225 up by 1.77%, Jakarta Composite up by 0.33%, KLSE Composite up by 0.54%, Taiwan Weighted up by 0.05% and Shanghai Composite up by 2.03%.While, Straits Times down by 0.07% and Hang Seng down by 0.06%.