Indian frontline equity indices managed to escape the wild swings in the dying hours of trade unaffected as they finished the session with over half a percent gains. Just when it appeared that the benchmarks will conclude another positive session with good gains, hefty bouts of selling emerged abruptly in the last leg of trade which dragged the key gauges to the lowest point in the session. However, the selling pressure was countered immediately before the close of session and the bulls had the last say as they stalled the declining momentum of the benchmarks and took the key indices to the highest point in the session. Index heavyweight Reliance Industries led the late recovery for the markets as it bounced back to end with over a percent gains ahead of its third quarter earnings announcement. After the previous sessions over a percent rally in the markets, investors chose to indulge in stock specific activity amid a slew of earnings announcements by heavyweight companies. One of IT heavyweights Wipro reported better than expected earnings for the December quarter and got commended for the performance by investors. However, FMCG bellwether ITC reported its third quarter earnings which were largely in line with street's expectations but got punished by marketmen. Meanwhile the rate sensitive banking stocks witnessed heavy buying interests a day after the pre-budget meeting of Banking and Financial Institutions' representatives and Union Finance Minister, where Pranab Mukherjee called for united efforts towards strengthening India's economy. Leads from the Asian peers too remained impressive as most markets in the region traded in the positive terrain. The optimism was spurred by upmove on Wall Street overnight on the back of encouraging earnings announcements by majors like IBM Corp, Bank of America and Morgan Stanley coupled with the upbeat US employment reports. While, the European markets exhibited sluggish trends in early trades amid concerns over the outcome of Greece debt swap talks.
Earlier on Dalal Street, the benchmark got off to an encouraging opening tracking the impressive leads from Asian markets tailing encouraging performance from the US. Thereafter, the bourses remained in fine fettle through the first half. But in second half the optimism in the markets showed signs of petering out in the mid noon trades as sudden selling pressure dragged the bourses into the negative terrain. However, the resilient indices did not capitulate to the extreme volatility and rebounded to touch the highest levels in the day. Eventually, the NSE's 50-share broadly followed index Nifty, climbed by over half a percent to settle just shy of the crucial 5,050 support level while Bombay Stock Exchange's Sensitive Index, Sensex garnered around a hundred points and ended just below the psychological 16,750 mark. Moreover, the optimism in broader markets fizzled out completely by the end as they settled with only marginal gains, underperforming their larger peers. On the BSE sectoral space, rate sensitive Banking counter remained the top gainer in the space with strong gains of over three and half a percent while the Consumer Durable sector too gained a lot of traction and settled with over two percent gains. On the flipside, the defensive - FMCG counters remained the top laggard with over two percent cuts mainly due to the sharp plunge in heavyweight ITC post announcing its quarterly numbers. The market breadth remained negative as there were 1363 shares on the gaining side against 1481 shares on the losing side while 112 shares remained unchanged.
Finally, the BSE Sensex rose 95.27 points or 0.57% to settle at 16,739.01, while the S&P CNX Nifty up by 30.20 points or 0.60% to close at 5,048.60.
The BSE Sensex touched a high and a low of 16,788.48 and 16,611.71 respectively. The BSE Mid cap and Small cap indices were up by 0.20% and 0.10% respectively.
The major gainers on the Sensex were Bajaj Auto up 6.18%, ICICI Bank up 5.81%, Jindal Steel up 3.35%, BHEL up 3.09% and Hero MotoCorp up 2.63%. While, ITC down 3.59%, M&M down 2.67%, Maruti Suzuki down 2.62%, Hindalco Inds down 1.98% and Coal India down 1.86%, were the major losers on the index.
On the BSE sectoral space, Bankex up 3.51%, Consumer Durables (CD) up 2.31%, Power up 1.04%, Oil & Gas up 1.04% and Auto up 0.72% were the top gainers, while FMCG down 2.01%, Health Care down 0.37%, Metal down 0.32% and TECk down 0.08% were top losers.
Meanwhile, India's mineral production grew 4.27% higher in the month of November 2011 as compared to the preceding month according to the data released by ministry of mines. However, the data also showed that mining sector activity measured by the index of mineral production, registered negative growth of 4.44% during November as compared to that of the corresponding month of 2010. The recent decline in iron ore and coal production owing to ban in some key mining areas has become a major issue with mining ministry and companies.
Out of the six minerals which together contributed about 95% of the total value of mineral production in November 2011, the petroleum (crude) remained the highest contributor at Rs 5,567 crore which is 35% of Rs 15,692 crore, the total value of mineral production (excluding atomic & minor minerals) during the month under review. Coal production was next in the order of importance with a value of Rs 4,628 crore, which is around 29.49% of the total value followed by Iron Ore which contributed Rs 2,788 crore, around 18% of the total value. Natural gas (utilized), Lignite and Limestone contributed Rs 1,409 crore, Rs 301 crore and Rs 282 crore respectively which is around 9%, 2% and 2% of the total value correspondingly.
Among important minerals, production level for coal was the highest at 481 lakh tonnes registering an increase of coal 20.15% followed by lignite at 29 lakh tonnes, a growth of 9.32%. Production level of other important minerals in November 2011 were natural gas (utilized) 3764 million cu. m., petroleum (crude) 31 lakh tonnes, bauxite 1075 thousand tonnes, chromite 283 thousand tonnes, copper conc. 10 thousand tonnes, gold 108 kg., iron ore 121 lakh tonnes, lead conc. 14 thousand tonnes, manganese ore 171 thousand tonnes, zinc conc. 135 thousand tonnes, apatite & phosphorite 180 thousand tonnes, dolomite 413 thousand tonnes, limestone 199 lakh tonnes, magnesite 20 thousand tonnes and diamond 2047 carat.
In November 2011 the output of magnesite increased by 46.52%, diamond 38.22%, zinc conc. 19.44%, manganese ore 18.05%, chromite 11.60%, lead conc. 4.90%, gold 3.85%, dolomite 3.38%, bauxite 1.96 percent. However, the production of limestone decreased by 0.44%, copper conc. 2.56%, petroleum (crude) 4.13%, natural gas (utilized) 4.27%, apatite & phosphorite 5.49%, and iron ore 6.36%.
The S&P CNX Nifty touched a high and low of 5,064.15 and 5,004.30, respectively.
The top gainers on the Nifty were Bajaj Auto up 6.63%, Axis Bank up 6.59%, ICICI Bank up 6.25%, Kotak Bank up 4.36% and BHEL up 4.18%.
On the flip side, ITC down 4.40%, DR Reddy down 3.48%, RPower down 2.46%, Reliance Infra down 2.40% and Maruti Suzuki down 2.19% were the top losers on the index.
The European markets were trading mixed. France's CAC 40 down 0.13%, Britain's FTSE 100 gained 0.09% and Germany's DAX down by 0.33%.
Asian bourses ended firm on Friday as strong earnings and positive jobs data of the US added to hopes that the economic recovery in the world's largest economy is for real. Chinese shares and commodities rose, shrugging off the HSBC flash manufacturing purchasing managers index (PMI), the earliest indicator of China's industrial activity, which stood nearly steady at 48.8 in January from 48.7 in December. Meanwhile, it's been reported that China's PBOC has been doing a reverse-repo operation this week, totaling $95B, equivalent to a 75bp cut in the reserve requirement ratio. However, traders expect further cuts after the Lunar New Year. IBM Corp's fourth-quarter earnings beat Wall Street expectations, while Bank of America and Morgan Stanley both reported results that were better than analysts were expecting, which helped lift shares in Japan's major banks.
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