Monday, March 11, 2013

 

Markets flat in afternoon trades; IT, auto shares decline


Markets continued to move on a lacklustre note this afternoon. The Sensex, after touching a high of 19754 was trading at 19,687 - up just four points. Nifty was up seven points at 5,952.

In Asia, markets were steady but demand for riskier assets was curbed by a mixed bag of Chinese data which pointed to a patchy recovery in the world's second-largest economy. On the other hand, the yen's slide bolstered Japanese equities, with the Nikkei stock average closing up 0.5 percent after hitting a fresh 4-1/2-year high.

Back home, investors would be looking at a slew of macro economic data including IIP and inflation numbers, which is set to come out this week. Markets may also react to the advance tax payment for the final installment for the current fiscal.

PSU Bank stocks gained on news that the government will provide Rs 14,000 crore for capital infusion in public sector banks in FY 2014. However, BSE bankex was down 0.1% at 13,963. Auto shares declined  0.3% at 10844 on news that domestic passenger car sales declined by 25.71% to 158,513 units in February, the biggest fall in more than 12 years and the fourth consecutive monthly slide. This was due to sluggish economic growth continues to weigh on demand in the once-booming market.

BSE Realty Index continued to lead gains on hopes of revival of new home sales post the Budget proposal for additional tax deduction for new home loan borrowers up to Rs 25 lakhs. Further, hopes of a rate cut by the central bank at its policy meet next week has also boosted sentiment. The index was up 1.1% at 2,098.

Bank of America-Merrill Lynch upgraded Reliance Industries Ltd to "neutral" from "underperform", citing increasing evidence of an improving refining outlook and an expected earnings growth recovery. Reliance was flat at 851.

Larsen & Toubro, which has been banned by the World Bank for six months, was trading at Rs 1499.

Sun Pharma, after touching a record high was up 2% at Rs 835. HDFC, Gail India, Tata Power were some of the other key gainers.

On the other hand, Hero MOtoCorp shed 2.5% at Rs 1700. Jindal Steel dropped as well. IT shares were weak on a rising rupee. The rupee was trading at 54.34 against the dollar today. Wipro, Infosys and TCS shed 0.8-1% each.

The market breadth in BSE remains neutral. Out of 2868 stocks traded, 1416 shares declined while 1326 shares advanced.

Paritosh Ranjan
PGDM 2sem

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