Markets End Flat Over Mixed Domestic, Global Cues

The Indian markets opened on a flat note today as multiple domestic and international cues left them directionless. The lacklustre trading continued around yesterday’s closing till noon. After this, however, the markets dived low as the unruly proceedings in both the houses of Parliament dampened investor sentiment. Work was halted in the Parliament following the opposition's uproar over retail FDI and the SC/ST Bill. Moreover, global cues being mixed could not have a significant influence on the direction of the markets. With this, the Sensex ended the day lower by 10.77 points or 0.06% at 18506.57 and Nifty closed down by 1.15 points or 0.02% at 5626.60.

The Asian markets were trading higher today as data from China kept the sentiments up. The preliminary reading of the Chinese manufacturing Purchasing Managers’ Index by HSBC and London-based Markit Economics for the month of October 2012 came in at 50.4. This figure has gone beyond the 50 mark for the first time in 13 months. (Any reading above 50 indicates expansion while one below 50 is indicative of contraction.)

European markets have been flat-to-positive today although the German GDP grew as estimated at 0.4% YoY and the German Ifo Business Climate Index climbed to 101.4 as compared to the previous 100.0. The uncertainty over a decision being taken over Greek funding has been keeping the markets from seeing significant moves on either side.

Domestically, while the broader indices remained flat, the BSE midcap and smallcap indices ended the day up by 0.06% and 0.20% respectively. The overall market breadth was slightly negative, with 1315 (44.5%) advances and 1498 (50.69%) declines. Of the 13 sectoral indices, 6 ended the day positive. No significant gains were seen in any of the sectors. However, Auto gained 0.33%, lifted higher by Hero MotoCorp and Tata Motors which saw gains of 1.21% and 0.71% respectively.

Hindustan Copper hit the 20% lower circuit today as the market was disappointed over the floor price (set at Rs 155 apiece) for the partial stake sale by the government. The stock ended the day at Rs 213.05 per share.

NTPC’s share price dropped by 2.57% today. The government had recently announced that it would divest a 9.5% stake in the power major.

Among other losers on the bourses today were Ranbaxy Labs, GAIL and Grasim, which lost 3.18%, 2.14% and 1.87% respectively.

On the other hand, Asian Paints, BHEL and HCL Tech were the top gainers, up by 2.17%, 1.54% and 1.46% respectively.

Though today’s trading ended on a flat note, the week has seen gains of over 1%. We expect the next week to be directionally influenced by various domestic and global factors including the winter session of the Parliament and the decision of European ministers over financing Greece, among others.