Benchmarks make flat start; Auto down about a percent

A day after a strong rally triggered by rate cut hopes, domestic benchmarks have started off on a cautious note stalling their rally as investors opted to book profits. However, global cues remained supportive as US markets made a good comeback overnight recovering all their last session's losses after Spanish bond yields came off earlier highs and as investors focused on the possibility of more monetary stimulus from the Federal Reserve while, most of the Asian equity indices were trading in the green at this point of time. Back home, profit-booking by participants at improved levels led to a fall in stock prices but firming trend on the other Asian bourses following overnight gains at the US market capped the losses. Meanwhile, telecom stocks were trading with great amount of traction as the Reserve Bank of India has approved the proposal to allow mobile phone companies to mortgage airwaves that will allow the companies to use spectrum as collateral and raise funds from banks for the upcoming auctions. However, Auto stocks like, Maruti Suzuki, Tata Motors and M&M were down 1% each on the buzz that diesel cars may get expensive by Rs 2.55 lakh, with the oil ministry plan of imposing a special tax on diesel using vehicles. The broader indices were outperforming benchmarks.

The BSE Sensex opened at 16,865.72; about 3 points higher compared to its previous closing of 16,862.70, and has touched a high and a low of 16,875.03 and 16,826.64 respectively. The index is currently trading at 16,828.30, down by 34.40 points or 0.20%. There were 13 stocks advancing against 17 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.25% and 0.43% respectively.

The top gaining sectoral indices on the BSE were, HC up by 0.71%, Metal up by 0.44%, FMCG up by 0.37%, Realty up by 0.35% and TECk up by 0.04%. While, Auto down by 0.88%, Oil and Gas down by 0.27%, CG down by 0.25%, Bankex down by 0.21% and IT down by 0.14% were the top losers on the index.

The top gainers on the Sensex were Bharti Airtel up by 1.07%, HUL up by 0.97%, Tata Steel up by 0.92%, Coal India up by 0.69% and Hindalco up by 0.65%.

On the flip side, Maruti Suzuki was down by 2.28%, M&M was down by 1.84%, Tata Motors was down by 1.05%, ONGC was down by 0.67% and NTPC was down by 0.51% were the top losers on the Sensex.

Meanwhile, as per Reserve Bank of India’s (RBI) discloser, the Indian companies raised $2.73 billion in April from overseas markets, through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs).Though, the amount raised was about 29 per cent lower than the previous month but was 32 percent higher than the same month last year of $2 billion.

In the borrowers list, Go Air topped raising $795 million through the approval route, Posco Maharashtra Steel borrowed $423 million under the automatic route. Software company, 3i Infotech, raised $130 million under the FCCB route. Five entities as on whole mopped up about $1.11 billion through the approval route, while 66 companies raised around $1.62 billion through ECBs or FCCBs route.

As per Reserve Bank data, most of the borrowings were for import of capital goods, modernization, new projects and rupee expenditure for import of capital goods. ECBs are used by Indian companies to access foreign funds at cheaper rates.

The S&P CNX Nifty opened at 5,117.55; about 2 points higher compared to its previous closing of 5,115.90, and has touched a high and a low of 5,122.45 and 5,106.20 respectively.

The index is currently trading at 5,111.50, down by 4.40 points or 0.09%. There were 27 stocks advancing against 23 declines on the index.

The top gainers of the Nifty were JP Associates up by 1.52%, Bharti Airtel up by 1.38%, IDFC up by 1.20%, HUL up by 1.10% and Ranbaxy up by 0.88%.

On the flip side, Maruti Suzuki down by 2.28%, M&M down by 1.92%, Tata Motors down by 1.05%, ONGC down by 0.65% and Cairn down by 0.65%, were the major losers on the index.

Most of the Asian markets were trading in the green; Shanghai Composite advanced 11.46 points or 0.50% to 2,301.25, Hang Seng Index rose 39.18 points or 0.21% to 18,911.74, Jakarta Composite added 4.95 points or 0.13% to 3,857.53, KLSE Composite gained 2.92 points or 0.19% to 1,578.99, Nikkei 225 ascended 28.43 points or 0.33% to 8,565.15 and Taiwan Weighted inched up 0.66 points or 0.01% to 7,072.74.

On the other hand, Straits Times Index declined 6.73 points or 0.24% to 2,790.35 and KOSPI Composite Index eased 1.70 points or 0.09% to 1,853.04.