The BSE Sensex and Nifty gained slightly to extend a winning streak to a fourth day but the markets were extremely flat in the absence of domestic or global cues. Clearly P Chidambaram taking over the finance ministry didn’t offer any relief for the markets. Perhaps the next big trigger would be the reforms agenda.
The 30-share BSE Sensex rose 21.20 points to close at 17,257.38 and the 50-share NSE Nifty went up 11.50 points to 5,240.50. The gains at Dalal Street however remain curbed, with the release of manufacturing activity data, which grew at a slower clip in July.
According to the HSBC purchasing managers’ index (PMI), a headline index designed to measure the overall health of the manufacturing sector, India expanded at the slowest pace in the past eight months to 52.9 in July, 2012 as against 55.0 in the previous month of 2012.
Foreign investors bought a net Rs 11,152 crore in July, according to provisional regulatory data, their biggest purchases since February. Foreign inflows into stocks so far in 2012 now stand at a net Rs 52,266 crore.
The cautious undertone of global equity markets transpired into the domestic markets, on renewed doubts of the European Central Bank’s scope for further measures to fight the region’s debt crisis.
“Downbeat manufacturing data from China added to uncertainty ahead of two important central bank meetings of US and Europe this week. Participants are likely awaiting cues from global developments such as the US Federal Reserve’s interest rate decision and Federal Open Market Committee meeting on Wednesday and the European Central Bank meeting on Thursday,” says Amar Ambani, Head of Research, IIFL.
Meanwhile, monthly release of auto sales number was a mixed bag, on one hand, Maruti Suzuki India and Mahindra & Mahindra slipped by 0.70% after reporting July sales number. Sales at India’s largest passenger car maker Maruti Suzuki rose 9% year-on-year to 82,234 units in July, while the Utility vehicle major Mahindra & Mahindra, reported a 18.73% rise in sales at 47,059 units for July against 39,633 units in the same month last year. On the other hand, TVS Motors Company gained over percentage and half even after reporting 15% drop in July vehicle sales number.
Cipla, Kotak Bank, Ambuja Cem, JP Associates, Reliance Infra and BHEL were the notable gainers on the Sensex and the Nifty today.
Coal India, ONGC, Sesa Goa, Hero Motocorp, TCS and Tata Steel were among the losers on the Nifty.
RBI sounded its concerns and reduced the estimate of growth to 6.5% from 7.3%. Inflation is forecast at 7% at the end of the year, against earlier estimates of 6.5%.
Stocks in news
Drug maker Cipla rallied 4.5 percent, having earlier hit its highest since January 2011, after posting a much better-than-expected net profit in the April-June quarter.
Coal India fell 2.6 percent after its agreement to supply at least 80 percent of the coal needed to fuel new power projects was seen exposing the miner to risks to its margins.
The company beat profit estimates in the June quarter. Infra major Jaiprakash Associates advanced 3.5 per cent on the back of strong quarterly earnings.
Deccan Chronicle Holdings slipped to a new closing low after a financial services firm filed a forgery case against the promoters of DCHL leveling allegations of misrepresentation among other things.