Bourses sustain their positive tempo despite subdued European markets start

Although not showing much of vigor, Indian equity markets have managed to sustain their positive tempo in absence of fresh positive triggers, as investors await the release of IIP and inflation data later this week, which would provide cues on RBI’s stance in its upcoming monetary policy review on September 17, 2012. 30 share barometer index, Sensex, gaining close to 0.15%, is trading above 17700 level, while widely followed index of National Stock Exchange (NSE), Nifty, holding in green, is oscillating above 5350 mark. Meanwhile, the broader indices continue to trade in fine fettle.

On the global front, European markets are trading subdued as macroeconomic concerns have prompted investors to take some profits off the table following last week's rally. However, losses could be limited as soft Chinese and U.S. economic data boosted expectations of further economic stimulus from global central banks. Meanwhile, Asian shares continue to showcase mixed trend.

Closer home, stocks from Metal, HealthCare and Consumer Durable are mainly supporting the uptrend of the bourses. Meanwhile, losses of Bankex, Power and Information Technology are capping the gains of the bourses. Metal shares on BSE is trading green tracing LMEX, a gauge of six metals traded on the London Metal Exchange, which jumped by 3.01% on September 7, 2012. The overall market breadth on BSE is in the favour of advances which have thumped declines in the ratio of 1426:1063, while 112 shares remained unchanged

The BSE Sensex is currently trading at 17,774.61, up by 24.96 points or 0.14% after touching a high of 17,810.90 and low of 17,731.75. There were 19 stocks advancing against 11 declines on the index.

The broader indices were trading in green; the BSE Mid cap and Small cap indices were trading higher by 0.47% and 0.72% respectively.

The top gaining sectoral indices on the BSE were, Metal up by 1.20%, HC up by 0.90%, CD up by 0.82%, Auto up by 0.35% and PSU up by 0.30%. While, Bankex down by 0.39%, Power down by 0.20%, IT down by 0.19%, Fast Moving Consumer Goods down by 0.11% and Realty down by 0.08% were the top losers on the index.

The top gainers on the Sensex were Sun Pharma up by 2.33%, Tata Steel up by 2.29%, Bharti Airtel up by 1.96%, Hindalco Industries up by 1.92% and Coal India up by 1.57%.

On the flip side, BHEL down by 1.73%, Jindal Steel down by 1.55%, HUL down by 0.98%, SBI down by 0.92% and TCS down by 0.82% were the top losers on the Sensex.

Meanwhile, underscoring the fears of sluggish economic growth in Asia's third-largest economy, domestic passenger car sales registered its first fall in 10 months in August at 118,142 units compared to 145,066 units in the same month in 2011, thereby recording a plunge of 18.56 percent. Total passenger vehicles sales also declined in August 2012 by almost 4 percent over same month last year.

According to the data released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in last month dropped for the first time since 2009 to 766,127 units from 836,887 units in the same month previous year, clocking drop of 8.46 per cent.  Meanwhile, total two-wheeler sales in August 2012 decreased by 4.50 per cent to 1057,925 units from 1107,782 units in the same period of previous year. However, on cumulative basis two-wheelers registered a growth of 6.80 percent during April-August 2012.

Further, total sales of vehicles across categories registered a dip of 3.90 per cent to 1354,436 units in August, against 1409,412 units in the corresponding month of the previous year. The overall growth in domestic sales during April-August 2012 was 6.61 percent over same period last year. However, total sales of commercial vehicles for the month under review have risen by 3.92 per cent to 66,767 units from 64,248 units in the year-ago period.

Soaring fuel prices, costly loans as well as fears of job losses in a slowing economy have crimped demand for cars and sport-utility vehicles. Thus, the falling trend has forced many automakers into production cuts and temporary shutdowns over the past three months. 

SIAM has further averred that, 'now we are entering a desperate zone,' and ‘if the negative trends continue in September as well, we will have to revise our targets downwards.' The SIAM has already pruned its car sales growth target to 9% from 10-12% due to high fuel prices and expensive interest rates.

The S&P CNX Nifty is currently trading at 5364.90, higher by 6.20 points or 0.12% and touched a high and a low of 5,375.45 and 5,350.40 respectively. There were 29 stocks advancing against 21 declines on the index.

The top gainers of the Nifty were Tata Steel up by 2.34%, Sun Pharma up by 2.18%, Hindalco up by 2.01% Bharti Airtel up by 2.00% and Coal India up by 1.75%.

On the flip side, BHEL down by 1.98%, Jindal Steel down by 1.55%, Axis Bank down by 1.47%, SBI and HUL were down by 1.19%, were the major losers on the index.

Asian equity indices were trading mixed; Shanghai Composite gained 0.14%, Jakarta Composite rose 0.05%, Taiwan Weighted surged 0.78% and Hang Seng was trading higher by 0.04%. On the flip side, KLSE Composite declined 0.20%, Nikkei 225 lost 0.03%, Strait Times was trading lower by 0.01% and Kospi Composite surrendered 0.25%.

European markets have managed to gain some traction after subdued start; CAC 40 added 0.15%, DAX gained 0.15% and FTSE 100 rose 0.09%.