Sensex, Nifty erases early gains on profit taking

After a firm opening tracking firm trends in global markets, Indian local equity markets retreated from higher levels erasing large portion of gains on profit booking. Major benchmarks trading with marginal gains, using result seasons as an excuse to consolidate. In currency markets, Indian rupee appreciated against dollar on the back of improved global risk sentiments after stronger than expected US retail sales data. On sectoral front realty, information technology and consumer durables stocks were mostly steady. FMCG, pharmaceuticals, bank and power stocks were off their earlier high levels. Oil stocks have given up most of their gains and slipped into negative territory. In global markets, most Asian stocks were trading in green, as hopes dimmed for aggressive moves by China to stimulate its slowing economy. Back home, the market breadth favoring positive trend; there were 1,383 shares on the gaining side against 1,023 shares on the losing side while 108 shares remain unchanged.

The BSE Sensex is currently trading at 18,753.31 up by 39.76 points or 0.21% after trading in a range of 18,801.10 and 18,729.60. There were 21 stocks advancing against 9 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.36% and Small cap index was up by 0.52%.

The top gainers on the BSE sectoral space were, TECk up by 0.87%, IT up by 0.71%, Realty up by 0.70%, CD up by 0.52% and FMCG up by 0.30%, while, Oil & Gas down 0.09% and Auto down by 0.04% were only losers on the sectoral space.

The major gainers on the Sensex were, Maruti Suzuki up by 1.52%, Bharti Airtel up by 1.41%, HDFC up by 1.28%, TCS up by 1.00% and Tata Power up by 0.97%.

On the other hand, Tata Motors down by 1.71%, Gail India down by 0.88%, Hindustan Unilever down by 0.75%, Dr Reddys Lab down by 0.39% and Hindalco Industries down by 0.33 % were major losers on the Sensex.  

Meanwhile, reflecting a slow-down in economic activity, indirect tax collections, comprising of customs, excise and service tax, grew at a low rate of 15.6 per cent to Rs 2.17 lakh crore in April-September against the annual target of Rs 5.05 lakh crore for the current fiscal, an increase of about 27 per cent from 2011-12 target.

The excise duty collection during the period aggregated to Rs 80,000 crore, while customs duty collection totaled at Rs 77,000 crore. Meanwhile, the service tax collection was at Rs 60,000 crore during the period.

In September, the tax collection witnessed a growth of about 19 per cent at Rs 22,000 crore, over the realization in the same month last fiscal. Out of this, revenue from Customs duty summed up to Rs 8,000 crore and from excise aggregated to Rs 8,110 crore. Service tax collection stood at Rs 5,890 crore in September.

The collection from service tax is expected to be higher from October, as the government has imposed the duty on railways also, which till September was exempted from the ambit of the tax. The exchequer from this is expected to earn about Rs 3,000 crore from the service tax decision coming into force from October 1. Meanwhile, the gross direct tax collection during the first six months of 2012-13 has registered growth of 5.87% at Rs 2.72 lakh crore as against Rs 2.57 lakh crore in the corresponding period last year.

The S&P CNX Nifty is currently trading at 5,699.90, up by 12.65 points or 0.22% after trading in a range of 5,714.00 and 5,693.05. There were 34 stocks advancing against 16 declines on the index.

The top gainers of the Nifty were Axis Bank up by 3.11%, Maruti up by 1.69%, HDFC up by 1.22%, Cairn up by 1.18% and Bharti Airtel up by 1.16%. While, Tata Motors down by 1.74%, ACC down by 1.24%, BPCL down by 1.01%, Ambuja Cement down by 1.00% and HUL down by 0.80% were top losers on the index.

All Asian equity indices were trading in the green; Kospi Composite was up by 0.83%, Shanghai Composite was up by 0.30%, Taiwan Weighted was up by 0.70% Hang Seng was up by 0.18%, Jakarta Composite up by 0.05%, KLSE Composite was up by 0.04%, Nikkei 225 was up by 1.44% and Straits Times was up by 0.18%.