TIGHT BAND

Oscillating in a tight band, benchmark equity indices virtually are trading listless in absence of any positive trigger both from home as well as global front. Bourses for second trading session are showing signs of fatigue as consolidation seem to be game changer for indices at Dalal Street post initial two session's of run up rally. Stocks from Capital Goods (CG), Realty and Power counters are blurring the picture for 30 scrip sensitive BSE's benchmark index-Sensex- which gyrating in proximity to its neutral line, is currently afloat in negative terrain to trade sub 17400 bastion, a level, which is close to its intra-day low. However, the broader indices holding their neck in green for second consecutive session are outperforming the benchmarks. The widely followed index of National Stock Exchange-Nifty- on other hand, albeit turning flat is currently showing up in green, to trade above 5300 crucial level.

On the global front, Asian shares too moved in a narrow range on Thursday after the previous day's rally as investors grew cautious ahead of a key Spanish bond sale that would assess the country's ability to service its sizable debt burden, however Australian dollar and stocks got a lift from a report that China will continue to deliver policy easing steps.

Back on the home turf, however, Cement makers ACC and Ambuja Cements have managed to gain traction ahead of their quarterly results. Ambuja Cements is expected to announce its 1QCY2012 results. On the topline front, the company is expected to post a 19.7% YoY growth to Rs 2,643 crore. Meanwhile, ACC is expected to post a topline growth of 17.8% YoY to Rs 2,826cr on account of higher volumes and improved realization. However, even steel companies stocks in the likes of JSW Steel, Tata Steel and SAIL have managed to hog limelight on reports stating the likelihood of Steel companies hiking prices for third time in a month. However, even stocks from Auto, Health care and Information Technology have managed to lure attention. The overall market breadth on BSE continues to support advances which have thumped declines in the ratio of 1146:856, while 90 shares remained unchanged.

The BSE Sensex is currently trading at 17,392.16, down by 0.23 points. The index has touched a high and low of 17,448.44 and 17,371.35 respectively.  There were 14 stocks advancing against 16 declines on the index.

The broader indices continued to show resilience; the BSE Mid cap and Small cap indices were trading up by 0.35% and 0.24% respectively.

The top gaining sectoral indices on the BSE were, Auto up by 1.04%, HC up by 1.01%, IT up by 0.38%, CD up by 0.36% and TECk up by 0.32%. While, CG down by 0.68%, Realty down by 0.51%, Power down by 0.39%, Oil & Gas down by 0.34% and Bankex down by 0.32% were the top losers on the index.

The top gainers on the Sensex were Tata Motors up by 1.84%, Tata Power up by 1.69%, Maruti Suzuki up by 1.51%, Coal India up by 1.05% and Sun Pharma up by 1.01%.

On the flip side, BHEL down by 2.28%, ICICI bank down by 1.58%, Hindalco down by 1.57%, Sterlite Industries down by 1.24% and SBI down by 1.04%% were the top losers on the Sensex.

Meanwhile, Oil companies have threatened to raise oil prices if the government does not compensate them for the losses incurred. They have asked the government to allow them to increase the price of petrol by Rs 8.04 per litre (excluding state levies) with immediate effect.

As per oil companies they are suffering losses to the tune of Rs 2,287 crore which have now become unsustainable. If the situation persists, it will impede the ability of the companies to import crude oil and may affect product supply-demand balance.

Indian Oil, which is India's biggest fuel retailer by volume, has stated that state-run refiners cannot sustain a scenario where they import crude oil at $121.29 per barrel and sell at $109.03 per barrel. It is of the view that the government should temporarily regulate petrol prices and pay them the 100% compensation or reduce the excise duty on petrol from Rs14.78/litre by an amount equivalent to the under-recoveries on petrol and simultaneously advise the states to reduce the rates of sales tax, which vary from 15% to 33%. The RBI too in its recent credit policy has spoken in favour of increasing oil prices.

The outburst is a reminder of the fact that petrol prices continue to be controlled by the government inspite of them being officially deregulated. In the month of November-December, crude oil prices shot up to $125 per barrel but the oil companies were not allowed to raise prices in tandem because of the crucial assembly elections. Petrol prices were last revised on December 1 and have remained unchanged from December 16 to March 31.

Indian Oil is also seeking an increase in prices of the three fuels (diesel, kerosene, LPG) sold at subsidized rates as in 2012-13. The combined revenue losses of refiners on such sales could surge to Rs 2.04 trillion from Rs 1.39 trillion a year ago, against which full compensation is yet to be received.

The S&P CNX Nifty is currently trading at 5,303.45, up by 3.45 points or 0.07%. The index has touched a high and low of 5,320.65 and 5,294.55 respectively.  There were 21 stocks advancing against 29 declines on the index.

The top gainers of the Nifty were Tata Motors up by 2.05%, Tata Power up by 1.83%, Ranbaxy up by 1.62%, Maruti Suzuki up by 1.48% and Cipla up by 1.31%.

On the flip side, BHEL down by 1.99%, Reliance Infra down by 1.85%, Hindalco down by 1.49%, Sterlite Industries down by 1.10% and Wipro down by 1.09%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite declined by 0.12%, Jakarta Composite shed 0.36%, KLSE Composite slid 0.17%, Nikkei 225 descended by 0.90%, Seoul Composite surrendered 0.28%, Straits Times capitulated by 0.04% and Taiwan Weighted was trading flat.

On the flip side, Hang Seng up by 0.37% was the lone gainer on the index.