SLENDER GAINS

After getting a muted start for the new financial year, benchmark 30 share index-Sensex- has pared substantial gains on the back of tepid macro-economic data, which renewing fears over the growth story of India, ate into the investor's risk appetite. The expansion of India's factory sector slowed for a third month in March as growth in new orders eased and costs for raw materials kept rising, a business survey showed on Monday. The HSBC manufacturing Purchasing Managers' Index (PMI), compiled by Markit, eased to 54.7 in March from 56.6 in February. 

Further, trade deficit data too was worrisome. India's trade deficit for the month of February widened to $15.2 billion during the month from $14.8 billion in January, while exports between April and February grew 21.4 per cent to $267.4 billion.

Powered by power stocks in early trade, Sensex touched an intra-day high, to cross the 17450 bastion, however, the profit booking which emerged thereafter took off significant gains of the barometer gauge, thereby letting it skate on thin layer of the ice. The 30 share benchmark index of Bombay Stock Exchange - Sensex- was holding up by mere 15 points, while, the National Stock Exchange -Nifty- slipped down in red terrain to trade below the 5300 psychological level. The broader indices, on the other hand, put forth a good show as they clinched gains of over 0.75% each.

Power stocks like Adani Power, Tata Power Company, CESC shot up in the range of 0.50%-1.50% after Tamil Nadu Electricity Regulatory Commission (TNERC) approved a steep 37% hike in power tariff for one year, effective from April 1. However, Positive global set up may reverse the story going further. Surprisingly firm China manufacturing data, which dispelled fears of a hard landing in the world's second biggest economy, led to positive Asian shares. Meanwhile, the US future indices were showing an uptick after positive close of Wall Street on Friday night.

The BSE Sensex is currently trading up by 16.01 points or 0.09% at 17,420.21. The index has touched a high and a low of 17,487.97 and 17,382.38 respectively. There were 17 stocks advancing against 13 declines on the index. The overall market breadth on BSE held in the favour of advances which emerged victorious against declines in the ratio of 1531:605, while 74 shares remained unchanged.

The broader indices were outperforming the benchmarks; the BSE Mid cap and small cap indices were up by 0.76% and 1.17% respectively.

The top gaining sectoral indices on the BSE were CD up by 3.27%, Power up by 1.28%, CG up by 1.18%, Realty up by 0.83% and Bankex up by 0.60%. While, Oil & Gas down by 0.50%, Metal down by 0.23% and Health Care (HC) down by 0.05% were the only losers.

The top gainers on the Sensex were DLF up by 1.86%, L&T up by 1.47%, NTPC up by 1.38%, TCS up by 1.23% and BHEL up by 1.07%.

On the flip side, Bajaj Auto down by 2.20%, Coal India down by 1.92%, HUL down by 1.20%, RIL down by 0.91% and Sterlite Industries down by 0.68% were the top losers on the Sensex.

Meanwhile, the expectation of a price rise after the budget has prompted people to buy cars before the end of the fiscal. Consequently car manufacturers have posted record sales for the month of March. About seven vehicle makers have announced healthy sales in March 2012 over the corresponding period a year ago with Tata Motors crossing one lakh unit sales mark.

Car prices are expected to go up in this fiscal as the Finance Minister has announced a hike in excise duty from the current 10% to 12%. As per leading car makers, this hike will lead to an increase in prices upto 3 lakh.  The biggest jump has come in for Toyota Kirloskar Motor (TKM) which has reported an increase of 87% in car sales to 18,220 units in March, driven by highest ever monthly sales of its 'Etios' and 'Liva' models.

Tata Motors has reported a jump of 20% in total vehicle sales during March at 100,414 units compared to 83,363 units sold in the same month last year. Its total passenger vehicle sales in the domestic market rose 34% at 36,984 units in March, highest ever in a month, over 27,678 vehicles sold in the year-ago period. In the commercial vehicles segment, the company sold 58,063 units in the domestic market last month against 49,753 units in the same period last year, up 17%.

Mahindra & Mahindra has registered a 25% increase in sales at 47,001 units in March - the highest ever monthly sales number in the history of the company. Similarly, Honda Siel Cars India, joint venture between Japanese auto major Honda and the Siel Group, recorded a three-fold jump in its sales for March 2012 at 11,016 units.

German luxury car maker Audi reported 47% jump at 1,002 units. Two-wheeler maker India Yamaha Motor posted a 14% increase in its total sales at 41,886 units. VE Commercial Vehicles (VECV), a joint venture between the Volvo Group and Eicher Motors, announced a 19.5% rise in its total sales at 6,051 units in March, 2012.

Auto makers like Maruti Suzuki, Hyundai, Tata Motors, Mahindra & Mahindra and India Yamaha had earlier expressed their unhappiness over the government's decision to hike the duties in the Budget.

The S&P CNX Nifty is currently trading at 5,292.10, down by 3.45 points or 0.07%. The index has touched a high and low of 5,315.80 and 5,278.80 respectively.  There were 24 stocks advancing against 25 declining on the index, while 1 stock remained unchanged.

The top gainers of the Nifty were Reliance Infra up by 2.45%, RPower up by 2.18%, SAIL up by 1.80%, Kotak Bank up by 1.77% and DLF up by 1.56%.

On the other hand, Bajaj Auto down by 2.35%, Coal India down by 2.24%, Ambuja Cement down by 1.74%, Ranbaxy down by 1.69% and ACC down by 1.43% were the major losers on the index.

Most of the Asian equities were trading in green; Jakarta Composite gained 0.73%, Nikkei 225 surged by 0.41%, Straits Times added 0.27%, Seoul Composite surged 0.75% and KLSE Composite rose 0.13%.

On the other hand, Hang Seng declined 0.32% and Taiwan Weighted lost 0.73%.

Shanghai Composite will remain closed till Wednesday for a public holiday and will open on Thursday.