BEAR GRIP

After getting a steady start for the fresh month's F&O series, barometer gauges have lured additional weakness as market-men cashed out profits after India's HSBC manufacturing Purchasing Managers' Index (PMI), compiled by Markit, slipped marginally to 54.8 in May from 54.9 in April. Pounded by Information Technology (IT), TECK and Power stocks, 30 scrip sensitive index, Sensex, is currently oscillating near the 16150 fortress, with a cut of over 50 points. However, gains of Consumer Durable, Fast Moving Consumer Goods (FMCG) and Bankex, counters, are limiting the downside for the bourses. Meanwhile, 50 share index, Nifty, holding above the 4900 bastion, is currently trading with a loss of over 0.50%.  Trend is diverse for broader indices, with Midcap index, showcasing an uptick, while Smallcap index, depicting a downtick marking.

Gloomy start to the Auto sales numbers, appears to be patchy for Indian equity markets, which in the previous session, have managed to absorb the Q4 GDP shockers, that slowing to a decade low level, stood at 5.3 percent in the January-March quarter of the financial year as against 7.8 per cent in the same quarter last year. Meanwhile, Country's largest carmaker Maruti Suzuki India (MSI) has reported 4.98% dip in sales to 98,884 units during May, 2012 as compared to 104073 units in May last year.

However, even the pessimistic global design is giving enough reason for investor's to exit the risky equity markets. Asian shares extended losses on Friday after China's factory activity data delivering its weakest reading this year, highlighted concerns over the worsening euro zone debt crisis further undermining global economic growth. China's official purchasing managers' index (PMI) fell to 50.4 in May, down from April's 13-month high of 53.3 and below the 52.2 forecast. Further, US future indices too were showing sharp downtick.

The BSE Sensex is currently trading at 16,155.45, down by 63.08 points or 0.39%. The index has touched a high 16,226.19 and low of 16,146.81 respectively. There were 10 stocks advancing against 20 declines on the index. The overall market breadth on BSE was in the favor of advances in the ratio of 1108:855, while 94 shares remained unchanged.

The broader indices were exhibiting mixed trend; the BSE Mid-cap index was down 0.11% while Small-cap index was up by 0.24%.

The gaining sectoral indices on the BSE were Consumer Durables (CD) up by 1.34%, Fast Moving Capital Goods (FMCG) up by 0.25%, and Bankex up by 0.11% While, Information Technology (IT) down by 1.59%, TECk down by 1.29%, Power down by 0.73%, Capital Goods (CG) down by 0.64% and Oil &Gas down by 0.61% were losers on the index.

The top gainers on the Sensex were ICICI Bank up by 1.22%, Hindalco Industries up by 1.20%, SBI up by 0.82%, ITC up by 0.76% and Tata Steel up by 0.76%.

On the flip side, Jindal Steel down by 1.82%, Wipro down by 1.72%, TCS down by 1.63%, Infosys down by 1.56% and Bajaj Auto was down by 1.39%, were the major losers on the index.

Meanwhile, oil companies have gone ahead and reduced the prices of jet fuel prices by 2%. This is the fourth straight reduction in prices after April. Jet fuel prices will be reduced by Rs 1,376.81 per kl or to Rs 65,670.14 per kl in New Delhi with effect from midnight of June 01, 2012. In Mumbai, jet fuel will now cost Rs 66,587.90 per kl against Rs 68,022.08 per kl.

The three earlier reductions were to the tune of Rs 753.8 per kl in three previous fortnights. Despite the recent cut in prices of aviation turbine fuel (ATF), it still remains high and is higher than the level of Rs 62,557.12 per kl before the three price increases. However, any reduction in fuel prices will be welcomed by the cash strapped airlines industry as jet fuel forms 40% of their operating cost.

The three fuel retailers, IOC, Hindustan Petroleum and Bharat Petroleum, revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight. 

The S&P CNX Nifty is currently trading at 4,904.55, lower by 19.70 points or 0.40%. The index has touched a high and low of 4,925.00 and 4,900.45 respectively. There were 13 stocks advancing against 37 declines on the index.

The top gainers of the Nifty were ITC up by 1.33%, ICICI Bank up by 1.24%, JP Associates up by 1.21% Hindalco up by 1.07% and Axis Bank up by 0.89%. 

On the flip side, Cairn down by 3.85%, Asian Paints down by 3.39%, SAIL down by 2.78%, Bank Baroda down by 2.42% and IDFC down by 2.39% were the major losers on the index.

All the Asian equity indices continued to reel under pressure; Jakarta Composite down 0.23%,  Straits Times Index  down  0.56%, KOSPI Composite Index  down  0.47%, Taiwan Weighted  down 2.53%,  Nikkei 225 was down  1.32% and KLSE Composite down by 0.44%. 

On the other hand, Shanghai Composite up 0.34% and Hang Seng Index up 0.33% were the only gainers in Asian pack.