Choppy Markets Close Flat

At the end of a lacklustre trading day, the Indian markets closed flat. The BSE Sensex closed with a loss of 13 points and Nifty closed down 2 points at 5683.

Earlier today, a host of economic data showed that industrial production has not picked up in the country. The Sept 2012 IIP data that came in at -0.4% indicates negative growth in industrial production. The markets were expecting about 3% growth in the IIP index, especially after the positive numbers posted in the previous month. The CPI figure at 9.75% has further increased the worries of the country, as inflation is still nowhere near the RBI’s comfort zone.

The scenario remained mixed in the Asian markets. Nikkei was down nearly 1% as data showed that the Japanese economy shrunk in the third quarter of the year. The shares on Hang Seng advanced 0.21%. The Shanghai index rose 0.49% after another set of data was released that indicated that the world's second largest economy, China, is recovering from the recent slowdown.

The European stocks are also trading on a mixed note at this time of the day ahead of the discussion of the European finance ministers over the bailout package to Greece. Earlier last week, Greece approved the budget. UK’s FTSE is trading 0.23% up, while DAX is up 0.29%. CAC is down 0.09% at this time.

Among the indices, Realty, Bankex and CD stocks were up 1% each by closing hour. SBI’s revision of its NPAs lifted the stock up 1.5%, improving the sentiment on Bankex. The FMCG and IT indices were up about 0.5% each, while HC and PSU were flat by end of the day. Oil & Gas, Power, Auto, Metals and CG ended in the red.

Among the Sensex stocks, HDFC Bank gained 1.85%. Bharti Airtel gained 1.63% as the much-awaited 2G auction saw a poor response. There are no bidders for the Delhi, Mumbai, Rajasthan and Kolkata circles and no player has applied for a pan-India license. IT majors TCS and Infosys gained about 0.5% each over the rupee depreciation and NASSCOM’s positive remarks. Dr. Reddy’s Labs closed with 0.47% gains after its initial losses turned into profits. NTPC, Bajaj Auto, Sterlite, ICICI Bank and Tata Motors also featured in the gainers list.

The shares of Tata Steel on the other hand closed down 1.72% as the company reported a quarterly loss of Rs 364 crore on Friday. The weak demand and lower prices in the European market have taken a toll on its business in the Sept quarter. Hero MotoCorp, Tata Power and ITC were also down nearly 1.5% each.

Coal India and ONGC slipped into the negatives today after their Q2 numbers were declared. Sun Pharma saw some profit booking. The company has told the exchange that it will acquire the US-based company Dusa. IT major Wipro was down 0.4%.

In other shares, Suzlon Energy was down over 1% after its quarterly results. The company has posted a loss of Rs 809 crore. The company is seeking CDR help for revival.

United Spirits surged 35% as Diego PLC made an open offer to buy a 53.4% stake in the company. The shares of Kingfisher rose 5% on this news. United Breweries, on the other hand, declined 4.48%.

Shree Cement saw some profit booking as its shares came down by 2.5%.

Realty major DLF was down 2.4% ahead of its results. The market expects 26% decline in its profit.

The advance-decline ratio on the BSE remained negative as the declines outnumbered the advances.

In conclusion, the market seems to be resisting going down from this level even though the global markets are showing trades on both sides. The IIP data was a shocker today, but the market did not show any strong negative reaction. The WPI data is expected to come in on Wednesday, which will further decide the movement of the market. Meanwhile, the markets will be open for 45 minutes tomorrow for ‘Muhurat trading’ after which they will be closed on Wednesday on the occasion of Diwali.

We wish you a very Happy Diwali and a Prosperous Samvat 2069