Markets close flat, await global cues

Indian markets remained sideways for the entire trading session today. European stocks declined, as investors were reluctant to buy stocks before the Euro leaders explain how they will fund their expanded bailout package. Among the sectoral indices, FMCG and Bankex showed some strength, while the Metal and Oil and Gas indices were down by 2%.

The Nikkei closed in the red zone after Japanese companies slashed their bottomline forecast. The Chinese market closed on a very flat note, amidst speculation that the government will ease curbs on the real estate industry.

Dow Jones Futures is currently trading 103 points, or 0.85% down at 12065, indicating a negative sentiment in the US markets.

Among the Sensex stocks, Hindalco gave up Friday’s strong gains, and closed 4% down at Rs 136.50. Other stocks like Sterlite Industries, Jindal Steel, Reliance Industries, ONGC, etc. closed down 2-4%. Hindustan Unilever was up by a whopping 7.38% at Rs 375.25, after posting robust Q2 FY12 numbers. Its topline increased by 18% to Rs 5522.16 crore and the bottomline increased by 22% to Rs 688.92 crore. Other gainers include Hero MotoCorp, Infosys, Tata Steel, NTPC, etc., which were up in the range of 0.5-1%.

Today, ICICI Bank also posted its Q2 FY12 earnings. Its Net Profit rose by 22% to Rs 1503 crore. The bank’s Net NPAs decreased by 11 basis points to 0.81% on a QoQ basis. However, the scrip remained quiet and closed 0.26% down at Rs 930.50.

BPCL reported a Net Loss of Rs 3229 core in Q2 FY12, versus a Net Profit of Rs 2142 crore in Q2 FY11. This was majorly on the back of higher under-recoveries. The scrip closed down by 2.27% at Rs 623.25.

We advise our readers to keep track of companies like ACC, Ambuja Cement, Central Bank, Punjab National Bank, Divi’s Labs, HPCL, etc., as they are going to post their Q2 FY12 numbers tomorrow.

The BSE clocked a turnover of Rs 2183 crore, lower than Rs 2502 crore as on 28th October, 2011. The market breadth, which indicates the overall health of the market, was positive. Out of the total of 3286 stocks traded, 1640 stocks advanced, 1534 declined, and 112 remained unchanged.

In conclusion, we at DSIJ expect the markets to remain sideways for tomorrow’s trading session. Investors are also waiting for the monetary policy meeting by the European Central Bank and the U.S Federal reserve, as well as the G-20 summit, with a focus to stabilise the global financial markets.