Post session - Quick review

Consolidation gripped equity markets after previous regular session’s run-up rally, as bourses trading listlessly in the range-bound session of trade, failed to gain significant traction. However, after getting a quiet start, benchmark equity indices managed to negotiate slender gains, although the efforts remained lackadaisical as investors were cautious of adding position ahead of the release of factory output data on Wednesday for further cues on RBI’s stance in its upcoming mid-quarterly policy review on September 17, 2012. Street is widely expecting the index of industrial production to edge up 0.3 percent year on year in July, after shrinking 1.8 percent in June, which was the third contraction in four months.

Beside, investor’s also preferred cashing profits as hopes for fiscal reforms receded post oil Minister S. Jaipal Reddy said on Friday that India has no immediate plan to raise domestic fuel prices. In the low volume session of trade, 30 share barometer index of Bombay Stock Exchange (BSE), Sensex, gained mere 15 points to shut shop above the 17700 mark. Similarly, the widely followed index of National Stock Exchange (NSE), Nifty, too added a little above its neutral line, to conclude above the 5350 crucial mark. Meanwhile, the broader indices managed to outperform the frontline equity indices, as both Midcap and SmallCap index ended with gains of over 0.25% and 0.50% respectively.

Besides absence of fresh trigger in home markets, mixed trend of regional counterparts also became one of the reasons behind the lackluster performance of the bourses. Asian pacific shares ended mixed as weak Chinese economic data offset rising hopes for stimulus measures from the Federal Reserve following Friday's weaker-than-expected U.S. jobs data. Stocks were higher across the region early in the session, but dipped lower after China announced that its trade surplus widened in August as imports dropped unexpectedly. This add to figures released over the weekend showing industrial production continued to slow in August, up 8.9% on year compared with July's 9.2% rise, its lowest rate since May 2009.

Additionally, European shares too trimmed previous session’s gains early on Monday, with investors in consolidation mode awaiting catalysts such as potential stimulus from the United States and a German constitutional court ruling on the euro zone's bailout fund.

Closer home, stocks from Health Care, Consumer Durable and Metal counters, were the star performers on the BSE sectoral front, which building up on gains, lifted the markets higher. On the flip side, stocks from Realty, Bankex and Power counters were beaten out of shape. Rate sensitive Bankex and Realty counters lost steam on worries delayed fiscal reforms preventing RBI from lowering interest rates. Meanwhile, Power counter was dragged by the plunge of Bharat Heavy Electricals which hitting its lowest since October 2008, falls 2.4 percent, on renewed concerns of coal block cancellations after the controversial government sales process dubbed 'Coalgate”. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1477:1342 while 131 scrips remained unchanged. (Provisional)

The BSE Sensex gained 17.13 points or 0.10% and settled at 17766.78. The index touched a high and a low of 17810.90 and 17728.12 respectively. 15 stocks were seen advancing against 15 declining on the index (Provisional).

The BSE Mid-cap index was up 0.28% while Small-cap index was up 0.70%. (Provisional)

On the BSE Sectoral front, CD was up 0.99%, HC up 0.95%, Metal up 0.71%, Auto up 0.49% and TECk up by 0.19% were the top gainers, while Realty down 0.78%, Bankex down 0.77%, Power down 0.44%, FMCG down 0.23% and CG down 0.05% were the losers in the space.

The top gainers on the Sensex were Sun Pharma up 2.93%, Bharti Airtel  up 2.14%, Coal India up by 1.50%, Tata Steel up 1.26% and Hero MotoCorp up1.25% while, BHEL down 2.32%, SBI down 2.06%, Jindal Steel down 1.99%, Wipro down 1.42% and Tata Power down 1.35% were the top losers in the index. (Provisional)

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.

India VIX, a gauge for markets short term expectation of volatility gained 3.45% at 15.27 from its previous close of 15.26 on Friday. (Provisional)

The S&P CNX Nifty gained 4.75 points or 0.99% to settle at 5,363.45. The index touched high and low of 5,375.45 and 5,349.10 respectively. 23 stocks advanced against 27 declining ones on the index. (Provisional)

The top gainers on the Nifty were Sun Pharma up 2.77%, Bharti Airtel up 2.20%, Bajaj-Auto up 1.71%, Coal India up 1.71% and Tata Steel was up 1.27%. Other hand, Axis Bank down 2.89%, BHEL down 2.32%, SBI down 2.13%, Jindal Steel down 1.86% and DLF down 1.47% were the top losers. (Provisional)

The European markets were mostly trading in green with, France’s CAC 40 up 0.01%, Germany’s DAX up 0.08% and the United Kingdom’s FTSE 100 down 0.05%.

Asian markets ended mixed on Monday, on the back of weak data from China and the United States which raised hopes for new stimulus measures ahead of Federal Reserve meeting. Japan's Nikkei 225 ended lower on the government’s statement that the economy grew at a slower pace than earlier estimated for the April-June quarter. Growth stood at an annual 0.7%, slower than the 1.4% given in August. Meanwhile, Hong Kong shares held on to gains on Monday despite less contribution from the investors after last week's sharp run-up as optimism over Chinese infrastructure spending was tempered by weak monthly trade data that pointed to a worsening economic outlook.