Sensex closes flat; auto stocks skid; inflation eyed

Equity benchmarks closed flat on Wednesday after a day of 195 points rally on the Sensex on anticipation of rate cut hopes. The market is keenly waiting for inflation data for May that will be announced tomorrow; analysts on average expect around 7-7.5%.

Inflation after a flat industrial output for April will be key factors for the Reserve Bank of India while taking decision on monetary easing. Strong expectations have been building up since last month that the central bank may cut repo rate or cash reserve ratio by 50 basis points to give a boost to sluggish economic growth.

Today's consolidation seemed to be an indication that the market priced in rate cut hopes. The BSE benchmark rose 17.71 points, to close at 16,880.51 and the NSE benchmark went up 5.55 points to 5,121.45. Both benchmarks rallied more than 5.5% in last seven out of eight sessions.

Tirthankar Patnaik, Religare Capital Markets expects a 50 bps cut in repo rate on Monday.

He explains that the rate cut expectations have been led by deterioration in economy data and warns that the market may see sell-off if RBI disappoints next week. He also advises to remain cautious at 5200-5250.

The Indian rupee appreciated by 25 paise to 55.54 as against the US dollar at the time of closing of Indian equities.

At 14:46 hours IST: Sensex flat amid seesaw trade; Kingfisher, USL, UB up 5-8%

The BSE Sensex and NSE Nifty rose 0.4% each in afternoon trade led by capital goods, FMCG, banks and technology stocks. State-owned oil & gas producer ONGC surged over 2%, but the fall of 0.84% in index heavyweight Reliance Industries capped the upside.

The BSE benchmark rose 64.68 points to 16,927.48 and the NSE benchmark moved up 21 points to 5,136.95 amid volatility. The Indian rupee too appreciated by 9 paise to 55.71 as against the US dollar.

Country's largest lenders State Bank of India and ICICI Bank were up 1.2% and 1.5%, respectively. Technology majors Infosys, TCS and Wipro gained around 1%.

FMCG company Hindustan Unilever jumped over 2%. Even shares of Sun Pharma and Jindal Steel climbed 2% each.

However, diesel vehicle makers Maruti Suzuki, Tata Motors and M&M plunged 2-3%. Sterlite Industries fell nearly 2% on profit booking after rising consistently for previous three sessions.

Liquor baron Vijay Mallya-led UB group's United Breweries, United Spirits and Kingfisher Airlines surged 5-8%. United Breweries Holdings shot up 19%.

At 13:33 hours IST: Volatile Nifty holds 5100; L&T spikes 3%, Maruti tanks 3%

The BSE Sensex and NSE Nifty extended gains amid choppy trade in afternoon, helped by capital goods, banks, FMCG and technology stocks. European markets too gained further after initial flat trade; France's CAC, Germany's DAX and Britain's FTSE rose 0.6-0.8%.

The BSE benchmark climbed 62 points to 16,925.06 and the NSE benchmark was up 21 points at 5,137.25.

Country's largest private sector lender ICICI Bank rallied 1.7% while its rival State Bank of India went up 0.77%.

Engineering and construction major by sales Larsen & Toubro topped the buying list, rising 3% and state-owned capital goods company BHEL moved up 1%.

FMCG majors HUL and ITC were up 2% and 0.4%, respectively. India's largest software services exporters TCS, Infosys and Wipro gained 0.6-1%.

State-owned oil & gas producer ONGC rose 1% whereas rival Reliance Industries, index heavyweight dropped 0.7% that capped the upside.

Auto stocks stayed on bears' radar after reports that government may hike diesel car rates. Tata Motors and M&M fell nearly 2%. Top car maker Maruti Suzuki tanked 3% and Hero Motocorp was down 1.5%.

In the second line shares, HOEC, Parsvnath Developers, Shree Global, Jaypee Infra and India Cements rallied 5-7% whereas Eicher Motors, Maharashtra Seamless, Godrej Properties, Motilal Oswal and Unitech lost 2.5-4%.

At 12:28 hours IST: Sensex, Nifty choppy; L&T, HUL, Sun Pharma top gainers

Indian equity benchmarks continued to move around their previous closing values on Wednesday. It looked like a consolidation after more than 1% rally yesterday on hopes of further monetary easing by the RBI on June 18.

The BSE benchmark declined 9 points to 16,853.65 while the NSE benchmark was flat at 5,116.35. The broader markets too were flat.

Engineering and construction major by sales Larsen & Toubro and FMCG major HUL were up 1.6% each. Drug maker Sun Pharma too gained 1.6%.

State-owned capital goods company BHEL rose over 1%. Shares of Infosys, ICICI Bank, ONGC and Wipro moved up 0.4-0.9%.

However, auto stocks remained under selling pressure after The Times of India reported that the government may hike diesel car rates.

Top car maker Maruti Suzuki was down 3.35% and utility vehicle manufacturer M&M fell 2.6%. Commercial vehicle maker Tata Motors and top two-wheeler maker Hero Motocorp were down 1.5% each.

Index heavyweight Reliance Industries went down over 1% and HDFC Bank slipped 0.6%.

Most active shares on the BSE were IDFC (up 1.4%) with 61,84,960 shares, United Spirits (rose 5.5%) 4,91,107 and Reliance Capital (up 1.2%) with 8,36,244 shares.

At 11:37 hours IST: Nifty tests 5100 amid volatility; RIL, SBI, HDFC Bank down

The 50-share NSE Nifty tested the 5100 level amid marginal selling pressure on Wednesday. It was weighed down by Reliance Industries and State Bank of India. Auto (four-wheeler) stocks extended losses on reports of hike in diesel car rates.

Country's largest car manufacturer Maruti Suzuki topped the selling list, falling 3.5%. Utility vehicle maker M&M and top commercial vehicle maker Tata Motors were down 2-2.5%. Two-wheeler major Bajaj Auto and Hero Motocorp too were under pressure, losing 1% each.

The BSE benchmark declined 49 points to 16,814 and the NSE benchmark was down 14 points to 5,101.85, even after positive Asian markets. Shanghai jumped 1% and Nikkei was up 0.77%. Hang Seng, Kospi and Taiwan Weighted gained 0.3%.

Reliance Industries, India's most valued stock dropped 1%. Top lender State Bank of India and housing finance company HDFC fell over 0.5%.

Private sector lender HDFC Bank slipped 0.8% while its rival ICICI Bank gained 0.2%.

Steel company Sterlite Industries tanked 2.6% on profit booking after it rallied for previous three consecutive sessions.

However, FMCG majors ITC and HUL moved up 0.35% and 1%, respectively. Software services exporters Infosys and Wipro went up 0.5%.

Country's largest engineering and construction company by sales Larsen & Toubro and state-owned capital goods company BHEL were up 0.4%.

At 10:18 hours IST: Nifty, Sensex lacklustre; broader markets outperform

The BSE Sensex and NSE Nifty were lacklustre in trade on Wednesday. A consolidation after yesterday's 195 points rally on the Sensex seemed to be an indication that the market priced in rate cut hopes and global stimulus hopes. The Indian rupee too was flat at 55.80 as against the US dollar.

The BSE benchmark moved up 5 points to 16,867.98 and the NSE benchmark was up 4 points to 5,119.85 while the broader markets outperformed benchmarks. The BSE Midcap Index was up 0.75% and Smallcap up 0.5%.

Country's largest lenders State Bank of India and ICICI Bank gained 0.2% and 0.7%, respectively.

Top telecom operator Bharti Airtel and FMCG major rallied over 1%.

Reliance Communications surged 3% after Singapore Exchanges granted Flag Telecom (a subsidiary of Reliance Communications) a 'eligibility to list'.

Largest coal mining company Coal India rose 1% after sources said the PMO would hold meet with Coal Ministry and company's CMD on June 22.

Infosys, India's No. 2 software services exporter moved up 0.3% and state-owned capital goods company BHEL went up 0.9%.

However, top commercial vehicle maker Tata Motors, top car manufacturer Maruti and utility vehicle maker M&M were down 1.5%, 2.5% and 1.75%, respectively after The Times of India reported that government may hike diesel car rates.

Index heavyweight Reliance Industries declined 0.3%. HDFC and HDFC Bank were down 0.2% each.

Advancing shares outnumbered declining by 707 to 430 on the National Stock Exchange.

In the second line shares, Kalpataru Power, Parsvnath Developers, Hathway Cable, Sadbhav Engg and Sintex Industries gained 3-6% whereas Maharashtra Seamless, Jindal Saw, Voltas, Godrej Properties and Hexaware Tech declined 2-3%.

Most active shares on the BSE were Sun TV Network (up 0.33%) with 10,19,390 equity shares, United Spirits (up 6%) with 2,97,273 and Reliance Capital (up 1.5%) with 2,98,397 shares.

On the global front, Asian markets like Shanghai and Nikkei climbed 0.8% and 0.6%, respectively. Nikkei rose 0.3% and Kospi gained 0.2%.

At 9:20 hours IST: Sensex, Nifty flat; Maruti, M&M, Tata Motors fall 1%

The 30-share BSE Sensex and 50-share NSE Nifty opened flat on Wednesday after yesterday's more than 1% rally on rate cut hopes.

The BSE benchmark fell just 25.5 points to 16,837.32 and the NSE benchmark slipped 6 points to 5,110.05.

Technical analyst Sudarshan Sukhani, s2analytics.com expects the market to get choppier than yesterday.

"We are going to see wild swings on the downside and upside which means buying should be done only when one gets a dip, if one doesn't then it is wise to step aside," he said.

Reports of central banks may come out with stimulus for global economy helped global markets stay stable. Asian markets were marginally higher - Shanghai advanced 0.8%. Nikkei gained 0.55% and Hang Seng was up 0.3%.

Back home, Maruti Suzuki, Tata Motors and M&M were down 1% each after The Times of India reported that government may hike diesel car rates.

L&T, TCS, NTPC, HDFC, ICICI Bank, ONGC, SBI and Infosys too were under pressure.

However, PNB, SAIL, IDFC, JP Associates, BPCL, Tata Steel, Bharti, Kotak Mahindra Bank, HUL, Cipla, Dr Reddy's Labs, Sun Pharma, Coal India, Wipro and Ranbaxy Labs gained.

The CNX Midcap Index rose 14 points to 7,092. About two shares advanced for every share declining on the National Stock Exchange.

In the second line shares, Sintex and Punj Lloyd were up over 0.5%.

IVRCL, DCB, Vijaya Bank, Allahabad Bank, Syndicate Bank, UCO Bank and SKS Microfinance gained 1.5-2%.

Kingfisher Airlines shot up 3% on stake sale buzz. United Spirits

However, Voltas, GVK Power and Pantaloon Retail were down 0.5-1%.