Benchmarks trade negative tracking weak Asian stocks; industrial output data eyed

The Indian equity markets are trading in the negative terrain after making a flat start as the global cues remain mixed as US markets made a bounce back overnight breaking their six days long losing streak while, most of the Asian counterparts were trading in the negative terrain at this points of time. Back home, sentiment turned bearish on sustained selling by funds and retail investors ahead of the release of index of industrial production (IIP) data for the month of April later on today. On the sectoral front, realty witnessed the maximum gain in trade followed by healthcare and consumer durables while, fast moving consumer goods, auto and oil and gas remained the top losers on the BSE sectoral space. The broader indices witnessed some traction and were outperforming benchmarks. Meanwhile, the PSU oil marketing companies viz., BPCL, HPCL and IOC all were edged lower by over half a percent in the trade as the international crude oil prices rose further while the auto stocks like, Mahindra & Mahindra, Maruti Suzuki, Hero Honda too edged lower on report that car sales rose 7 percent in May, their slowest pace of growth in two years. The market breadth has made a positive start; there were 922 shares on the gaining side against 629 shares on the losing side while 73 shares remained unchanged.

The BSE Sensex opened at 18,390.41; about 6 points higher compared to its previous closing of 18,384.90, and has touched a high and a low of 18,399.02 and 18,332.19 respectively.

The index is currently trading at 18,344.02, down by 40.88 points or 0.22%. There were 14 stocks advancing against 16 declines on the index.

The overall market breadth has made a positive start with 56.77% stocks advancing against 38.73% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices were up by 0.22% and 0.28% respectively. 

The top gaining sectoral indices on the BSE were, Realty up by 0.65%, HC up by 0.42%, CD up by 0.41%, IT up by 0.18% and TECk was up by 0.11%. While, FMCG down by 1.12%, Auto down by 0.40%, Oil and Gas down by 0.39%, Power down by 0.25% and PSU down by 0.15% were the top losers on the index.

The top gainers on the Sensex were Hindalco up by 0.82%, TCS up by 0.79%, DLF up by 0.57%, ONGC up by 0.38% and HDFC Bank was up by 0.30%.

On the flip side, ITC down by 2.00%, Maruti Suzuki down by 1.80%, RIL down by 0.66%, Hero Honda down by 0.65% and NTPC down by 0.59% were the top losers on the index.

Meanwhile, Domestic car sales in India expanded at the slowest pace in 24 months, posting a tepid growth of 7% to 1,58,817 units in the month of May against the 30 percent jump in the same month last year, according to the data released by the Society of Indian Automobile Manufacturers (SIAM). Sales of Automobile surged 30% in the financial year ended March 31, the fastest since 1999-2000, driven by a rapidly increasing aspirational middle class, easier availability of low-cost loans, introduction of new models and rising incomes in an expanding economy.

However, the demand for new vehicles has taken a hit in the recent past because of higher interest rates, non-availability of finance, rising fuel prices and higher prices of vehicles. The price of fuel was raised by a record 8.6% in May. The rampant inflation remained the biggest dampener as it compelled Reserve Bank of India to hike interest rates nine times since March last year.

The data released by SIAM also showed that motorcycle sales in the world's second-fastest growing auto market grew by 14.33% during the May month to 8,29,255 units from 7,25,311 units in the corresponding month last year. Total two-wheeler sales increased by 14.49% last month to 10,72,287 units from 9,36,555 units in May, 2010.

Sales of commercial vehicles jumped by 16.16% to 56,314 units from 48,479 units in the year-ago period while total sales of vehicles across categories registered a growth of 13.40% to 13,70,786 units in May, as against 12,08,820 units in the same month last year, according to SIAM.  

The S&P CNX Nifty opened at 5,518.05; about 3 points lower compared to its previous closing of 5,521.05, and has touched a high and a low of 5,521.45 and 5,501.75 respectively.

The index is currently trading at 5,505.95, down by 15.10 points or 0.27%. There were 19 stocks advancing against 31 declines on the index.

The top gainers of the Nifty were Hindalco up by 1.04%, Ranbaxy up by 0.95%, Sun Pharma up by 0.80%, TCS up by 0.64% and DLF up by 0.59%.

Maruti Suzuki down by 1.53%, Reliance Capital down by 0.94%, Ambuja Cement down by 0.87%, ACC by 0.78% and SAIL was down by 0.78%, were the major losers on the index.

Most of the Asian markets were trading in the red; Shanghai Composite was down 5.35 points or 0.20% to 2,697.99, Hang Seng was down 155.13 points or 0.69% to 22,454.70, Jakarta Composite was down 5.45 points or 0.14% to 3,800.74, Straits Times was down 5.46 points or 0.18% to 3,092.11, Seoul Composite was down 11.51 points or 0.56% to 2,059.91 and Taiwan Weighted was down by 95.15 points or 1.06% to 8,905.79.

On the flip side, KLSE Composite was up 6.74 points or 0.43% to 1,557.63 and Nikkei 225 was up by 89.76 points or 0.95% to 9,556.91.

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