Sensex closes flat but earnings are the next big trigger

It was an uneventful day for the markets as the benchmark indices closed in the red, snapping three consecutive sessions of mild gains. The BSE Sensex, the barometer of the Indian economy, closed down marginally by 17 points to 17,521. However, it was up 96 points from the day’s low. The S&P CNX Nifty also closed lower by 10 points to 5,317.

The market breath was negative. On the BSE, 1,536 stocks declined while 1,360 advanced. Among sectoral indices, realty (-1.35 percent) was the biggest loser followed by consumer durables.

In the 30-share Sensex pack, 18 stocks declined led by a sharp fall in Jindal Steel (-3.17 percent), Sterlite Inds (-2 percent) and Tata Power (-2 percent). The top gainers was ICICI Bank (1.55 percent).

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The next trigger for the markets would be from the earnings. According to Jyotivardhan Jaipuria, Head of Research, BofA Merrill Lynch, says that Sensex earnings growth are expected to be below 10 percent. He further added that he sees earnings downgrades post first quarter result performance by India inc.

Stock specific news :

•India Cements gained 1.2 percent after Prince Holdings, a promoter led company, acquired 2.47 percent stake in the company. Total promoter holding has now risen to 28.24 percent from 25.77 percent earlier.

•Bajaj Auto fell 1 percent after news that the company has cut prices of its products in Sri Lanka in order to increase volumes post the excise duty hike.

•Jain Irrigation closed up 2.2 percent after the company got the RBI nod for launch of NBFC.

•Jindal Steel & power closed lower by 3.2 percent after the company suspended operations at its iron ore mine in Bolivia due to legal problems.