Weakness persists in market; banking stocks dip on inflation data

After opening on a negative note this morning, Indian stock market continued to trade marginally lower, following weak cues from Asian peers and pressing sales at several counters. Meanwhile, the wholesale price index (WPI), India's main inflation gauge, unexpectedly rose to its highest level in the year at 7.81% for the month of September, as compared to 7.55% (Provisional) for the previous month, but lower than the growth rate of 10% during the corresponding month of the previous year. Moreover, higher-than-comfortable inflation rate has limited the possibility of policy rate cut. In currency markets, rupee extended previous sessions losses against dollar amid increased demand for the American currency. On sectoral front bank, capital goods and automobile stocks were trading weak, while select realty, information technology and oil stocks edged higher. In global markets, most Asian stocks were trading lower, as hopes dimmed for aggressive moves by China to stimulate its slowing economy. Back home, the market breadth favoring positive trend; there were 1,249 shares on the gaining side against 1,140 shares on the losing side while 129 shares remain unchanged.

The BSE Sensex is currently trading at 18,612.36 down by 62.82 points or 0.34% after trading in a range of 18,690.99 and 18,596.65. There were 11 stocks advancing against 19 declines on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.05% and Small cap index was up by 0.52%.

The top gainers on the BSE sectoral space were, HC up by 0.56%, Oil & Gas up by 0.24% and Realty up by 0.06%. While, CD down by 0.86%, Bankex down by 0.64%, TECk down by 0.55%, IT down by 0.47% and PSU down by 0.43% were the top losers on the sectoral space.

The major gainers on the Sensex were Hindalco Industries up by 1.44%, Cipla up by 0.98%, Dr Reddys Lab up by 0.73%, Bajaj Auto up by 0.48% and Sun Pharma up by 0.40%. On the other hand, Maruti Suzuki down by 1.85%, Gail India down by 1.28%, Bharti Airtel down by 1.25%, Sterlite down by 1.22% and Coal India down by 0.97% were major losers on the Sensex.  

Meanwhile, sticking to its reform agenda the government has ruled out a rollback or modification of its decision to cap supply of subsidised cooking gas (LPG) at 6 cylinders per household in a year. Earlier, on September 13 the government had decided to cap supply of subsidised LPG with a view to check burgeoning subsidy bill and any requirement over and above the six subsidised cylinders would have to be procured at market price.

Oil Minister S Jaipal Reddy was reported saying that 'I have nothing new to say on this issue.' For the current financial year (beginning April 2012 and ending March 2013) Reddy said that ‘irrespective of how many subsidised LPG cylinders the consumer may have consumed in the first half of current fiscal that began in April, they will get three 14.2-kg LPG cylinders at subsidised rates during the period till March 31, 2013. There is no ambiguity on that.’

However, the oil ministry has decided to lift the cap of six subsidised LPG cylinders for flats with reticulated gas connection irrespective of the number of dwelling units in it. An apartment complex with reticulated system will not be considered as a single unit. Each flat in the complex will be counted as a separate unit entitled for subsidised LPG. For reticulated LPG consumers or piped LPG, the number of cylinders to be supplied at subsidised rates to the Housing Society will be limited to the net entitled quantity based on individual consumption but not more than 3 cylinders of 14.2 kg till March 2013 and not more than 6 cylinders per annum from April 1, 2013.

The S&P CNX Nifty is currently trading at 5,655.40, down by 20.65 points or 0.36% after trading in a range of 5,676.85 and 5,651.05. There were 16 stocks advancing against 34 declines on the index.

The top gainers of the Nifty were Ranbaxy up by 1.32%, Ambuja Cement up by 0.98%, Hindalco up by 0.97%, Dr Reddys Lab up by 0.92% and Cairn was up by 0.87%. While, Maruti down by 1.85%, Bharti Airtel down by 1.33%,  DLF down by 1.28%, Sesa Goa down by 1.27% and GAIL down by 1.22% were the losers on the index

Asian equity indices were trading mostly in the red; Kospi Composite was down by 0.40%, Shanghai Composite was down by 0.60%, Taiwan Weighted was down by 0.24%, Hang Seng was down by 0.15%, Jakarta Composite down by 0.14%, KLSE Composite was down by 0.17% while Nikkei 225 was up by 0.51%, Straits Times was up by 0.12% were the gainers.