Domestic benchmarks continue listless trading

Key Indian equity benchmarks continue to struggle for direction in the late trade, with the BSE Sensex and the NSE Nifty trading near their previous close level, as investors stayed away from taking any big bet ahead of IIP data and inflation numbers, due to be announced later this week. Moreover, global market too remained extremely quite with European indices trading flat amid concern about slowdown in top economies such as the US, China and Japan while, Asian counters too remain mixed as investors digested a slew of disappointing reports on the state of the world’s top three economies. Moreover, all eyes will now be on the two-day FOMC policy meeting that begins on September 12, 2012. Federal Reserve Chairman Ben S Bernanke has in the recent past indicated his willingness to introduce QE3 in a bid to shore up the world's largest economy and boost employment in an election year.

Back home, metal stocks continued to provide strength to the key benchmarks as metal shares like NMDC, Hindalco, Sail, Tata Steel, JSW Steel and Sterlite Industries edged higher as LMEX, a gauge of six metals traded on the London Metal Exchange, jumped 3.01% on September 7, 2012. Moreover, Auto space too remained one of the top gainer after Petroleum Minister Jaipal Reddy stated that state-run oil companies don’t have an immediate plan to increase the prices of fuel products such as gasoline and diesel despite their mounting revenue losses. On the flip side, Bankex, Realty and power stocks remained the major laggard on BSE sectoral front. The broader indices were outperforming benchmarks while, the market breadth on the BSE was positive; there were 1,393 shares on the gaining side against 1,251 shares on the losing side while 121 shares remained unchanged. 

The BSE Sensex is currently trading at 17,757.39, up by just 7.74 points or 0.04% after touching a high of 17,810.90 and low of 17,728.12. There were 16 stocks advancing against 14 declines on the index.

The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices were trading higher by 0.30% and 0.62% respectively.

On the BSE sectoral space, Consumer Durables up by 0.87%, Metal up by 0.81%, Healthcare up by 0.76%, Auto up by 0.29% and Capital Goods up by 0.07% were the prominent gainers. While, Bankex down by 0.85%, Realty down by 0.77%, Power down by 0.48%, IT down by 0.19% and Oil and Gas down by 0.14% were the top losers on the index.

The top gainers on the Sensex were Bharti Airtel up by 2.30%, Sun Pharma up by 2.09%, Tata Steel up by 1.77%, Coal India up by 1.65% and Hindalco Industries up by 1.45%.

On the flip side, BHEL down by 2.15%, Jindal Steel down by 2.12%, SBI down by 1.55%, Tata Power down by 1.19% and ICICI Bank down by 1.18% were the top losers on the Sensex.

Meanwhile, to revive the ailing pharma industry by boosting exports, the government of India has formed a consultative group comprising government officials and industry representatives. The group members will look into various issues in the industry and also plan ways to garner more investments into the sector.

The centre’s main motive in forming the group includes, leveraging brand India as the best source of affordable, safe and quality medicines and capture the major share of international pharmaceutical market. The panel will be responsible for developing new approaches in production, exports, sharing services and will also focus on more innovations, including all aspects for generic pharmaceutical stores in India.

The pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectables. The Indian pharmaceutical industry, consists of about 10,000 firms, and is estimated as a Rs 1 lakh crore industry, where Rs 60,000 crore accounts from domestic market.

The S&P CNX Nifty is currently trading at 5,358.00, lower by 0.70 points or 0.01% and touched a high and a low of 5,375.45 and 5,349.10 respectively. There were 26 stocks advancing against 24 declines on the index.

The top gainers of the Nifty were Bharti Airtel up by 2.20%, Sun Pharma up by 2.10%, Coal India up by 1.79% Tata Steel up by 1.78% and SAIL up by 1.53%.

On the flip side, Axis Bank down by 2.41%, BHEL down by 2.30%, Jindal Steel down by 2.16%, SBI down by 1.79% and Tata Power down by 1.35%, were the major losers on the index.

Asian equity indices were trading mixed; Shanghai Composite gained 0.34%, Taiwan Weighted surged 0.78%, Strait Times climbed 0.07% and Hang Seng was trading higher by 0.13%. On the flip side, Jakarta Composite dipped 0.01%, KLSE Composite declined 0.22%, Nikkei 225 lost 0.03% and Kospi Composite surrendered 0.25%.

European markets have managed to gain some traction after subdued start; CAC 40 added 0.04%, DAX gained 0.02% and FTSE 100 declined 0.21%.