Local barometer gauges, cooling from intra-day's low level, have cut short some of its losses on the back of recovery in the Information Technology (IT), Fast Moving Consumer Goods (FMCG) and Technology counters. Finding some support near the bottoms, 30 scrip sensitive index, Sensex, is oscillating above the 16350 bastion. While the widely followed 50 share index, Nifty, albeit recuperating from low's, is staggering below the 5000 fortress. Additionally, the broader indices, too have clawed back some ground, as Midcap and Smallcap indices, pruned losses.
Gloomy global design, right from the start of the trade, has dissuaded market-men to invest their finances into risky bets. Mounting worries over Spain's borrowing cost spiraling towards unsustainable levels, has kept Asian counterparts in tizzy. Moreover, the US future indices too continued to show sharp downtick in the screen trade.
Closer home, murky results of country's largest car maker- Tata Motors along with weakness in the rupee, which again breached Rs 56 level against the US dollar casted its shadow on the trading sentiments, triggering selling. Tata Motors' turned biggest loser after the company reported drop of 31% in its full year's net profit of Rs 1242.23 crore as compared to Rs 1811.82 crore for the year ended March 31, 2011. However, weak rupee came as comforting factor for IT stocks, which derive lion share of the revenue from exports. On the flip side, rate sensitive, Auto, Realty and Bankex stocks featured in the list of 'worst performers'.
The BSE Sensex is currently trading at 16,359.46, down by 79.12 points or 0.48%. The index has touched a high 16,391.90 and low 16,299.53 of respectively. There were 11 stocks advancing against just 19 declines on the index. The overall market breadth on BSE was largely in the favour of advances which piped declines in the ratio of 957:1060, while 89 shares remained unchanged.
The broader indices too have gained some additional traction; the BSE Mid cap and Small cap indices down by 0.44% and 0.19% respectively.
The top gaining sectoral indices on the BSE were Fast Moving Capital Goods (FMCG) up by 0.31%, Information Technology (IT) up by 0.29%, TECk up by 0.19%, and HC up by 0.10%. While, Auto down by 3.07%, Realty down by 1.11%, Bankex down by 1.11%, Capital Goods (CG) down by 0.63% and Power down by 0.37% were losers on the index.
The top gainers on the Sensex were Tata Power up by 1.67%, Sun Pharma up by 1.56%, Wipro up by 1.25%, ONGC up by 0.84%, and Maruti Suzuki up by 0.81%.
On the flip side, Tata Motors down by 8.17%, DLF down by 1.78%, BHEL down by 1.42%, SBI down by 1.15% and HDFC Bank was down by 1.13%, were the major losers on the index.
Meanwhile, Industrial production is expected to accelerate to 6.9% in FY13 as compared to the projected 3.9% in FY12, as per the economic think tank Centre for Monitoring Indian Economy (CMIE). The acceleration is expected to be on account of the easing of supply side constraints especially an increase in the output of mining sector and also an increase in the generation of electricity. The manufacturing sector is too expected to do substantially better.
The mining sector will show good recovery and will pull up the overall industrial production in FY13. Output in mined products is expected to grow by 5.5% in FY13, after falling by 2% in the preceding year. Coal, which accounts for one third of the mined products output is expected to grow by a healthy 8% on the back of fresh capacity additions. ONGC's capacity addition is expected to increase production of crude oil as well as natural gas. Crude oil is expected to grow by 6.5% whereas natural gas might see a production increase of 3% as compared to 1% and -9% respectively in FY12.
Power generation is also expected to grow by 13.2% in FY13 as compared to 8% in FY12. Improvement in the availability of coal and capacity additions will push up the generation of thermal power to 14%. This assumes importance as thermal power accounts for 80% of the country's total power production. Generation of nuclear power may rise by 17.2%.
The manufacturing sector is also expected to show good growth on the back of increase in purchasing power of both urban as well as rural sector and an improvement in the availability of raw materials. Substantial capacity additions are also hinting towards a future growth in the sector. It is expected that the manufacturing will grow by 5.8% in FY13 as compared to 3.9% in FY12. This acceleration is expected to be fuelled by a 10% growth in automobiles and basic metals industries.
The S&P CNX Nifty is currently trading at 4,962.20, lower by 27.90 points or 0.56%. The index has touched a high and low of 4,966.40 and 4,945.70 respectively. There were 15 stocks advancing against 35 declines on the index.
The top gainers of the Nifty were Sun Pharma up by 1.47%, Tata Power up by 1.10%, Wipro up by 1.10% HCL Tech up by 0.84%, and ITC up by 0.78%.
On the flip side, Tata Motors down by 8.30%, BPCL down by 2.30%, BHEL down by 2.13%, DLF down by 2.05% and Reliance Infra down by 1.89% were the major losers on the index.
Most of the Asian equity indices continued to reel under pressure; Jakarta Composite down 0.21%, Shanghai Composite down 0.23%, Hang Seng Index down 1.99%, Straits Times Index down 0.39%, KOSPI Composite Index down 0.51%, Taiwan Weighted down 0.96%, and Nikkei 225 was down 0.81%.
On the other hand, KLSE Composite up by 0.17% was only gainer in the Asian pack.
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