CAUTIOUS MARKETS

The Indian equity markets have made a dismal start following disappointing results from Index heavyweight Reliance Industries. However, the benchmarks recovered immediately to trade flat led by banks and technology stocks. Even the buyback offer from Reliance supported the stock to cut all the losses. Globally, the US markets closed mixed on last trading day of the week on the back of mixed earnings number and eyeing the talks between Greece and its lenders. In Asia, most of the markets are closed today, though those who are trading, are marginally in green. Back home, RIL lost about 3 percent due to disappointing results in Q3, but the downside was capped led by company's buyback offer. On the sectoral front banking witnessed the maximum gain in trade followed by power and consumer durables while, oil and gas, capital goods and fast moving consumer goods remained the top losers on the BSE sectoral space. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 1,025 shares on the gaining side against 505 shares on the losing side while 70 shares remained unchanged.

The BSE Sensex opened at 16,667.02; about 72 points lower compared to its previous closing of 16,739.01, and has touched a high and a low of 16,766.93 and 16,659.32 respectively.

The index is currently trading at 16,754.89, up by 15.88 points or 0.09%. There were 18 stocks advancing against 12 declines on the index.

The overall market breadth has made a strong start with 64.06% stocks advancing against 31.56% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.66% and 0.53% respectively.

The top gaining sectoral indices on the BSE were, Bankex up by 1.49%, Power up by 1.15%, CD up by 0.93%, TECk up by 0.65% and PSU was up by 0.60%. While, Oil and Gas down by 1.64%, CG down by 0.17%, FMCG down by 0.14% and Metal down by 0.04% were the only losers on the index.

The top gainers on the Sensex were ICICI Bank up by 3.06%, Tata Power up by 1.86%, Tata Motors up by 1.71%, NTPC up by 1.52% and BHEL was up by 1.46%.

On the flip side, RIL was down by 2.72%, Coal India was down by 1.63%, Sterlite Industries was down by 1.62%, Hero MotoCorp was down by 1.58% and L&T was down by 1.15% were the top losers on the Sensex.

Meanwhile, Coal producing states and companies have been asked to take appropriate steps to curb and check the theft of coal. In a statement, the Ministry of Coal said, 'law and order was a state subject and state/district administrations were requested to take necessary action to stop or curb the theft and black marketing of coal.

It stated that companies, on their part, had taken various measures to prevent the theft of the fuel. These included establishing check posts at vulnerable points, wall fencing, lighting arrangements and deployment of armed guards round-the-clock around the coal dumping yards. Regular patrolling in and around the mines was being done, including the Over Burden dumps. Armed guards had been deployed at Railway sidings. The company managements are also interacting and liaisoning with District Officials at regular intervals and holding meetings with District Collector & District Administration every month.

Further, to check theft, challans for coal transportation by trucks outside the district were issued after fixing hologram and putting signatures of authorized officials of Central Industrial Security Force (CISF). Regular FIRs were lodged by the Management of the collieries and CISF with local police stations against the theft of coal. A close watch on the activities of criminals is being maintained by CISF. In a phased manner, managements had been taking action for filling/dozing/scaling/blasting of the old/abandoned exposed coalfaces.

The statement comes at a time when the country is facing an acute shortage of coal. It is estimated that the country requires an additional 142 million tonnes of coal to meet its domestic demand. Recently there have been reports of widespread theft and illegal mining activity at Coal India (CIL) assets. CIL accounts for 80% of production of coal in the country.

As majority of mines are operated by Coal India's subsidiaries like Central Coalfields, Bharart Coking Coal, Mahanadi Coalfileds and Eastern Coalfields in Jharkhand, Odisha and West Bengal have reported several such incidents of theft and illegal mining. Early this month, Eastern Coalfields  also said that illegal mining and increased mafia operations had caused them a loss of about Rs 30 crore as production had been delayed at many of its mines.

The S&P CNX Nifty opened at 5,025.35; about 23 points lower compared to its previous closing of 5,048.60, and has touched a high and a low of 5,057.60 and 5,021.35 respectively.

The index is currently trading at 5,051.80, higher by 3.20 points or 0.06%. There were 32 stocks advancing against 18 declines on the index.

The top gainers of the Nifty were ICICI Bank up by 3.05%, AXIS Bank up by 2.06%, Grasim up by 1.88%, Tata Power up by 1.76% and JP Associates up by 1.71%.

On the flip side, RIL down by 2.83%, Coal India down by 1.71%, Maruti Suzuki down by 1.63%, Sterlite Industries down by 1.62% and Hero MotoCorp down by 1.47%, were the major losers on the index.

In Asia, most of the markets are closed today, though those who are trading, are marginally in green. Japanese Nikkei up 12.30 points or 0.14% to 8,778.66 as US home sales rose to the highest level in almost a year, overlooking Greece's struggle to reach a deal with creditors to ease its debt burden.