Sensex closes flat; midcap, smallcap indices gain 1%

It was completely lacklustre session for the Indian equity benchmarks on Wednesday due to lack of local and global cues.

Today's consolidation after nearly 600 points rally on the Sensex in previous three sessions indicated that the market seems still hopeful for some actions on reforms after cabinet reshuffle. Even the outcome of Federal Reserve's meeting and European Central Bank's meeting will also be closely watched by the market.

Indian shares closed higher for the fourth consecutive session today. 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.

However, the broader markets outperformed benchmarks; the BSE Midcap and Smallcap indices gained 1% each as about two shares advanced for every share declining on the National Stock Exchange.

At 15:31 hours IST, France's CAC and Germany's DAX were off day's high on renewed doubts on the European Central Bank's scope for further measures to fight the region's debt crisis. Britain's FTSE went up 0.7% while Spain and Italy markets declined 1%. The Dow Jones futures gained 55 points ahead of policy decisions by US Federal Reserve.

Back home, drug producer Cipla was the top gainer among largecaps, rising 4.4% after the company's net profit rose higher than expected 58% year-on-year to Rs 401 crore in the first quarter of FY13. Sun Pharma and Dr Reddy's Labs gained more than 1%.

Housing finance company HDFC and country's largest lender State Bank of India too rallied over 1% while private sector lenders HDFC Bank and ICICI Bank were marginally down.

Major largecaps like Reliance Industries, ITC, Larsen & Toubro and HUL moved up 0.35%-0.7%. State-owned power equipment manufacturer BHEL surged 2%.

Top commercial vehicle maker Tata Motors gained 0.6% after its total sales for July jumped 15% year-on-year to 74,159 units. Bajaj Auto went up 0.85% ahead of sales numbers tomorrow.

Two-wheeler major Hero Motocorp tanked 1.7% ahead of sales numbers for July that schedule to be announced today after market hours. Top car maker Maruti Suzuki went down 0.8% after weak numbers on month-on-month basis.

Country's largest software services exporters TCS and Infosys were down 1% and 0.4%, respectively. Steel producers Sterlite Industries and Tata Steel fell 1% each.

State-owned oil & gas producer ONGC dropped 2% and top telecom operator Bharti Airtel was down 0.9%.

Coal India, country's largest coal mining company, tumbled nearly 3% after the company agreed to supply at least 80% of the coal needed to fuel new power projects.

In the second line shares, BASF, Century Textiles, Dishman Pharma, PVR, Ceat and Bajaj Corp rallied 4-13% after strong results in the quarter ended June 2012.

Voltas fell nearly 5% ahead of numbers today after market hours. Deccan Chronicle crashed 10% after reports that Karvy filed forgery case against the company.

Adani Power fell nearly 1% after the company posted consolidated loss of Rs 810 crore in the June quarter.

On the National Stock Exchange, advancers outnumbered decliners by 947 to 490.

Indian shares remained in a consolidation mode in afternoon trade while broader markets continued to outperform benchmarks. On the National Stock Exchange, advancers outnumbered decliners by 921 to 471.

FMCG, capital goods and healthcare stocks were supporting the market whereas metals, private banks and technology stocks were under pressure.

The 30-share BSE benchmark moved up 29.45 points to 17,265.63 and the 50-share NSE benchmark rose 10.40 points to 5,239.40.

Among banking and financials stocks, housing finance company HDFC and country's largest lender State Bank of India gained nearly 1.5% whereas private sector lenders HDFC Bank and ICICI Bank were marginally lower.

Index heavyweight Reliance Industries went up 0.9% while state-owned oil & gas producer ONGC was down nearly 1%.

Drug producer Cipla rallied nearly 4% after better than expected numbers in first quarter of FY13.

Engineering and construction major Larsen & Toubro rose 0.6% and state-owned power equipment manufacturer BHEL surged 2%.

Top commercial vehicle maker Tata Motors climbed 0.9% as the company's total sales jumped 15% year-on-year to 74,159 units in July.

Technology majors TCS, Infosys and Wipro declined 0.5-1%. Top telecom operator Bharti Airtel was down 0.65%.

Coal India, country's largest coal mining company tanked over 3% after the company has agreed to supply at least 80% of the coal needed to fuel new power projects.

Most active shares on exchanges were SBI, Orissa Minerals, United Spirits, Cipla, Amar Remedies, ICICI Bank, Tata Motors and Reliance Industries.

The 50-share NSE Nifty remained in a narrow range of 5215-5240 since early trade due to lack of global and local cues. The market is waiting for some actions on reforms from new finance minister P Chidambaram, and outcome of Federal Reserve's meeting (that will end today) and European Central Bank's meeting (that scheduled for Thursday).

The BSE benchmark gained 18.51 points at 17,254.69 and the NSE benchmark rose 5.3 points to 5,234.30. However, the broader markets outperformed benchmarks - BSE Midcap and Smallcap indices were up over 0.8%.

Country's largest lender State Bank of India rallied 1.66% while its rivals HDFC Bank and ICICI Bank were down 0.6% and 0.2%, respectively.

Drug producer Cipla shot up 4.5% due to higher than expected numbers in the quarter ended June 2012.

FMCG major Hindustan Unilever, housing finance company HDFC, India's second largest two-wheeler maker Bajaj Auto and private power producer Tata Power rallied 1%
each.

Index heavyweights Reliance Industries and ITC moved up marginally.

Engineering and construction major Larsen & Toubro and state-owned power equipment manufacturer BHEL went up 0.44% and 1.65%, respectively.

Country's largest software services exporters TCS, Infosys and Wipro were down between 0.6% and 0.9%.

Telecom operator Bharti Airtel, state-owned oil & gas producer, two-wheeler major Hero Motocorp and top car maker Maruti Suzuki declined 1% each.

Coal India, one of the world's largest coal mining company remained down more than 3% after the board members yesterday agreed to supply at least 80% of the coal needed to fuel new power projects, a condition set by the government, but stipulated it could use a mix of 15% imported coal versus 65% domestic.

In the second line shares, Dewan Housing, HT Media, Bayer Cropscience, Delta Corp and Anant Raj Industries gained 5-8% while Glodyne Tech, Voltas, Schneider Electric, Godfrey Phillip and Tulip Telecom slipped 2-5%.

The BSE Sensex and NSE Nifty were completely lacklustre in trade as they were moving just around their previous closing values. The market needs a fresh trigger to take three-day rally further - the trigger may be in the form of reforms by the Indian government and globally it may be outcome of European Central Bank and Federal Reserve's meet.

The BSE benchmark was down 0.5 points to 17,235.68 and the NSE benchmark was flat at 5,228.50, but the broader markets outperformed benchmarks. The BSE Midcap Index rose 0.8% and Smallcap gained 1%.

Drug producer Cipla trimmed gains to 4% from 6.5% due to profit booking. The stock reacted to the strong results, wherein the profit after tax rose by 58% year-on-year to Rs 401 crore in the quarter ended June 2012.

Housing finance company HDFC, engineering and construction major Larsen & Toubro and country's largest lender State Bank of India moved up around 1%.

Index heavyweight Reliance Industries and top commercial vehicle maker Tata Motors gained 0.4% and 0.6%, respectively.

State-owned power equipment manufacturer BHEL went up over 1.5% while private power producer Tata Power was up 1%.

Shares of HDFC Bank, Infosys, TCS, ONGC, Bharti Airtel, Sun Pharma, Hero Motocorp, Maruti and Wipro were down 0.65%-1%.

Coal India, country's largest coal mining company tanked more than 3% as the company has agreed to supply at least 80% of the coal needed to fuel new power projects, a condition set by the government, but stipulated it could use a mix of 15% imported coal versus 65% domestic. It, however, deferred a decision on penalties the company will pay in case it does not meet the supply guarantees, company officials said on Tuesday.

In the second line shares, S Mobility, Dewan Housing, Delta Corp, Bayer Cropscience and Anant Raj Industries rallied 4-7%.

Among smallcaps, Symphony shot up 20%. Dishman Pharma, SKS Microfinance, MT Educare and Disa India were up 6-8.5%.

About two shares advanced for every share declining on the National Stock Exchange.

The BSE Sensex and NSE Nifty started off trade on a flat note on Wednesday as it seemed to have entered into consolidation mode after a rally in previous three sessions.

The market seems still hopeful for some form of action in terms of reforms or diesel price after the Cabinet reshuffle. P Chidambaram will be new Finance Minister and Sushil Kumar Shinde will become new Home Minister. Veerappa Moily will hold additional charge of power.

The BSE benchmark moved up 7.35 points to 17,243.53 and the NSE benchmark was up 0.60 points at 5,229.60.

Asian markets were mixed ahead of outcome of Federal Reserve' meeting (that will be ending today) and European Central Bank's meet that will begin on Thursday. Shanghai rose 1% after HSBC final manufacturing PMI for July increased to 49.3 as against 48.2 in previous month.

Nikkei was down 1% while Hang Seng, Kospi, Straits Times and Taiwan Weighted were flat.

Back home, drug producer Cipla shot up more than 6% after stronger than expected numbers in the first quarter of FY13. Its net profit jumped 58% YoY to Rs 401 crore.

Bharti, Bank of Baroda, Kotak Mahindra Bank, SBI, Ambuja Cements, Dr Reddy's Labs and Ranbaxy Labs were on buyers' radar.

However, Coal India went down 1% after the company agreed to supply at least 80% of the coal needed to fuel new power projects, a condition set by the government, but stipulated it could use a mix of 15% imported coal versus 65% domestic.

Tata Power, SAIL, Sterlite, Hindalco, ICICI Bank, HDFC Bank, Reliance Industries, Tata Motors, ITC and L&T were under pressure in early trade.

The CNX Midcap Index rose just 10 points to 7,179. The market breadth was neutral.

In the second line shares, Unitech fell 1.4% after Uninor decided to auction its business of mobile services and issued public auction notice with August 6 deadline.

Voltas dropped 3% ahead of first quarter numbers today.

After results announced yesterday, IDBI Bank, HOEC, Bhushan Steel and Elecon Engineering were down 1-2.5%. However, Delta Corp gained 2%.

OnMobile Global gained 1.6% after the company doubled its profit to Rs 9.5 crore in the quarter ended June 2012 YoY.

Dishman Pharma shot up 6%. Sun TV Network added another 2% to yesterday's rally.

Godrej Properties went up 2% as the company is going to develop 1.85 lakh sqft Ghatkopar Township.

Petronet LNG was up 1%. Manappuram Finance rose 3% ahead of Q1 numbers today.