Sensex ends flat; global cues positive but CAG sours mood

Indian equity benchmarks closed flat on Friday after erasing gains in the second half of trade. The 30-share BSE Sensex gained as much as 144 points in an intraday trade due to stability in global markets on hopes of easing Eurozone credit crisis after German Chancellor Angela Merkel's support to ECB President Mario Draghi's announcements in last ECB meet.

But the three CAG (Comptroller and Auditor General) reports tabled in parliament in afternoon trade washed out gains of the market. The index rose just 33.87 points to close at 17,691.08. Meanwhile, the 50-share NSE Nifty failed to hit the 5400 mark as it has touched an intraday high of 5399.95, which went up 3.35 points to close at 5,366.30.

The rise in FMCG, technology, auto stocks and ICICI Bank counter balanced the fall in metals, power, capital goods stocks and HDFC Bank.

Three CAG reports focus on the alleged losses to the government because of violation of norms in allocation of coal blocks, the concession agreement and land given to DIAL, and award of UMPP to companies like Reliance Power and Tata Power.

The CAG report states that allocation of coal blocks during the period from 2004 to 2009 was a bigger scam than 2G, and has pegged presumptive losses to the government on these allocations at Rs 1.86 lakh crore for 17.40 billion tonne of coal. The CAG said 25 firms including Essar Power, Hindalco, Reliance Power, Tata Steel, Tata Power and JSPL were benefited from these coal blocks.

Reliance Power is said to have gained Rs 29,003 crore as the bidding process is said to be vitiated by allowing Reliance Power to use excess coal from three blocks allocated to Sasan project. The stock was down 5.6% while Tata Power tanked 3.7%.

Hindalco Industries declined 2.5% and Jindal Steel plunged 4%. Tata Steel and Sterlite Industries were down over 0.8%.

CAG has questioned role of the then Civil Aviation minister, Praful Patel for favouring GMR and has said in its report that the company received undue benefits of Rs 3,400 crore. GMR Infrastructure declined 3%.

For the week, the NSE Nifty gained 0.86% while the BSE Sensex rose 0.76%. These benchmarks rallied more than 6% since July 27 and in those 15 days, foreign institutional investors have bought more than Rs 7,000 crore worth of equity shares in India.

FMCG majors ITC and HUL were up around 1.5%. Software services exporters TCS, Infosys and Wipro moved up 1-1.6%.

Top commercial vehicle maker Tata Motors rallied 2% after its global sales increased 21% YoY to 101,605 units in July.

Private sector lender ICICI Bank rose 0.5% while its rival HDFC Bank declined 0.9%.

Engineering and construction major Larsen & Toubro tanked 1.5% and state-owned power equipment manufacturer BHEL was down 0.5%.

State-owned ONGC, NTPC and GAIL slipped 0.7%-1.7%.

Decliners outnumbered advancers by 797 to 654 on the National Stock Exchange.

On the global front, France's CAC, Germany's DAX and Britain's FTSE were marginally higher. Asian markets like Hang Seng and Nikkei gained 0.77% each. Shanghai closed flat.

Indian shares were lacklustre after rub out of gains due to Comptroller and Auditor General's (CAG) report on coal scam. The fall in metals, capital goods, power stocks and SBI cancelled out gains in FMCG, auto, technology stocks and ICICI Bank.

The BSE benchmark rose 45.54 points to 17,702.75 and the NSE benchmark went up 6 points to 5,368.85.

In a report, tabled in Parliament, CAG said 25 firms including Essar Power, Hindalco, Tata Steel, Tata Power and Jindal Steel and Power were benefited to the tune of Rs 1.86 lakh crore from coal blocks allocated to them on nomination basis, instead of competitive bidding.

"Delay in introduction of the process of competitive bidding has rendered the existing process beneficial to the private companies. Audit has estimated financial gains to the tune of Rs 1.86 lakh crore likely to accrue to private coal block allottees," CAG said in a report on allocation of coal blocks. The CAG said it has arrived at the estimates based on the average cost of production and average sale price of opencast mines of Coal India in the year 2010-11. "A part of this financial gain could have accrued to the national exchequer by operationalising the decision taken years earlier to introduce competitive bidding for allocation of coal blocks," CAG said.

Tata Power and Jindal Steel crashed more than 3.5%. Hindalco fell 2.7% and Tata Steel declined 1.2%.

Reliance Power plunged 5.6% and Reliance Infrastructure was down 3% after the CAG said the Anil Ambani-led firm got undue benefit of Rs 29,033 crore when the government allowed use of surplus coal from blocks alloted to Sasan power plant for its other projects.

Engineering and construction major Larsen & Toubro dropped over 1% and state-owned power equipment manufacturer BHEL was down 0.5%.

Shares of ITC, Infosys, Tata Motors, TCS, HUL, Wipro and Dr Reddy's Labs gained 1-2%. ICICI Bank, HDFC, Bharti and M&M were up 0.3%-0.8%.

Indian shares trimmed gains after all three CAG (Comptroller and Auditor General) reports (coal, power and aviation) tabled in Rajya Sabha. CAG report says the coal scam is bigger than 2G case. The report indicated that the presumptive loss to government stands at Rs 1.86 lakh crore, which is quite higher than the notional loss of Rs 1.75 lakh crore due to 2G scam.

Metals stocks like Tata Steel, Hindalco Industries and Jindal Steel lost 1.2-1.8% while Sterlite Industries lost gains to trade with 0.5% losses.

Private power producers Tata Power and Reliance Infrastructure topped the selling list with fall of over 2% as CAG report said the loss was due to allocation of coal mines to private players.

The 30-share BSE Sensex gained just 25 points at 17,682 (which was up 145 points before the CAG report) while the 50-share NSE Nifty moved fell 2 points to 5,361, majorly supported by global markets. France's CAC, Germany's DAX and Britain's FTSE were up 0.2-0.4%.

Engineering and construction major Larsen & Toubro was down 1.3% and state-owned power equipment manufacturer BHEL declined 0.5%.

Country's largest lenders State Bank of India and ICICI Bank erased gains whlie their rival HDFC Bank fell over 1%.

Index heavyweight Reliance Industries dropped 0.4% after erasing all gains.

Commercial vehicle maker Tata Motors trimmed gains to 2% from 3%. FMCG majors like ITC and Hindustan Lever remained strong with more than 1.5% gains.

India's largest software services exporter TCS and Infosys too stayed higher with 1.3% upmove.

In the second line shares, GRUH Finance, S Mobility, CMC, Dewan Housing and Aban Offshore gained 3.5-6% whereas Glodyne Tech, Shree Global, Jain Irrigation, BEML and Century Textiles lost 2.5-5%.

Indian equity benchmarks continued to trade higher due to buying interest ITC and Infosys. Tata Motors, ICICI Bank, Reliance Industries, TCS and SBI too were supportive, but the fall in L&T and HDFC Bank has limited the upside.

The market recovered yesterday's losses also on hopes of easing Eurozone credit crisis after the German Chancellor Angela Merkel agreed yesterday to support ECB President Mario Draghi's announcements made in the last ECB meet. European markets opened marginally higher today.

The BSE Sensex gained 126.38 points at 17,783.59 and the NSE Nifty went up 30.45 points to 5,393.40.

Commercial vehicle major Tata Motors extended gains to 3% on value buying after its total global sales increased 21% year-on-year to 101,605 units in July. Jaguar & Land Rover's sales were up 41% to 26,921 units while commercial vehicle sales rose 1% to 47,776 units during the same period.

FMCG majors ITC and Hindustan Unilever rallied 1.8% each. Software services exporters TCS and Infosys were up 1% and 1.5%, respectively.

Country's largest lenders State Bank of India and ICICI Bank gained more than 1%. Housing finance company HDFC too was up 1%.

Index heavyweight Reliance Industries trimmed gains to 0.6% from 1%. Vedanta group's Sterlite Industries rebounded with more than 1% gains.

Utility vehicle maker Mahindra and Mahindra rallied 1.5% while top car maker Maruti was up 0.6%.

Engineering and construction major Larsen & Toubro declined 1%. Shares of HDFC Bank, Tata Steel and Hindalco Industries were down over 0.5%.

The NSE benchmark was inching towards the 5400 level while the BSE benchmark remained higher with more than 100 points gains. Asian equities too were steady; Hang Seng was up 0.5% and Nikkei moved up 0.8% while Shanghai was flat.

The 30-share BSE Sensex gained 123.22 points at 17,780.43 and the 50-share NSE Nifty rose 30 points to 5,392.60. The broader markets outperformed benchmarks marginally; the BSE Midcap Index went up 0.8% and Smallcap up 0.9%.

ITC, which holds maximum share in cigarette business, rebounded with 1.5% gains after falling 3% yesterday due to the news that Australian court approved logo ban on cigarette packs. Hindustan Unilever jumped nearly 2%.

Infosys, country's second largest software services exporter gained 1.4% while its rivals TCS and Wipro were up nearly 1%.

Top private sector lender ICICI Bank rose 1.2% and public sector lender State Bank of India was up 0.6% whereas their rival HDFC Bank fell 0.2%.

Commercial vehicle major Tata Motors retained its top position in the buying list with 2.6% gains. Utility vehicle maker M&M rallied 1.5% and top car maker Maruti Suzuki advanced 1%.

Index heavyweight Reliance Industries extended its gains by 0.86% today after rising nearly 3% yesterday on value buying.

Engineering and construction major Larsen & Toubro fell 1%. Metals stocks like Sterlite, Hindalco and Tata Steel declined 0.4%-0.8%.

Advancers outnumbered decliners by 1452 to 879 on the Bombay Stock Exchange.

The BSE Sensex extended gains more than 100 points due to further buying interest in technology, fast moving consumer goods, auto, banks and Tata group stocks. Index heavyweight Reliance Industries too was quite supportive with 1% gains.

The BSE benchmark moved up 127.4 points to 17,784.60 and the NSE benchmark climbed 32 points to 5,394.75. The broader markets too gained 0.7%.

Standard Chartered Securities feels the stability in global markets will support equities. According to him, top-end of the Nifty band may expand to 6,000.

Top lenders State Bank of India and ICICI Bank were up 0.9% and 1.24%, respectively. FMCG majors ITC and HUL went up 1.3-1.7%.

Country's largest car maker Maruti was up 1% after the RC Bhargava Chairman of the company said they would start Manesar plant from August 21. Analysts on an average feel the stock has already priced in all bad news and from here on, it will gain momentum ahead of festive season.

Good global sales numbers in July helped commercial vehicle major Tata Motors rally 2.44%. Group total global sales jumped 21% to 1,01,605 units and Jaguar & Land Rover sales rose 41% YoY to 26,921 units, but commercial vehicle sales increased just 1% YoY to 47,776 units.

India's largest software services exporters TCS and Infosys were up 1% each while their rival Wipro gained 0.7%. Housing finance company HDFC moved up 1%.

Engineering and construction major Larsen & Toubro was down 0.4%. Vedanta group's Sterlite Industries declined 0.9% as it will be excluded from Nifty 50 with effect from September 28.
 
In the second line shares, SKS Microfinance, United Spirits, UB Holdings, Manappuram Finance, Alok Industries and Shree Renuka Sugars rallied 2.5-3%. Great Offshore shot up 17% and TBZ surged 19%.

Nearly three shares advanced for every share declining on the National Stock Exchange.

Indian equity benchmarks rebounded on Friday with gaining all yesterday's losses following a rally in US and European markets. Commercial vehicle major Tata Motors surged 2.6% after global sales numbers in July. Total sales jumped 21% YoY to 1,01,605 units.

The BSE Sensex rose 79 points to 17,735.97 and the NSE Nifty went up 20 points to 5,382.45.

Sandeep Bhatia, Kotak Institutional Equities feels it is completely liquidity driven rally. Foreign institutional investors have been bought more than Rs 7,000 crore worth of equities since July 27. However, first quarter earnings were not strong and the cut in policy rates won't happen in September, he quickly says.

The US data and positive Eurozone newsflow aided upmove in the US equity markets on Thursday. S&P 500 Index closed at a 4-month high. In case of Eurozone, German Chancellor Angela Merkel publicly supported the ECB President Mario Draghi's announcements in the last ECB meet.

Back home, top car maker Maruti Suzuki gained nearly 1% as the company will start work at its Manesar Plant from August 21.

Reliance Infrastructure and Tata Power were up 1.5% after Maharashtra government hiked power tariffs by 16.48% w.e.f August 1.

Cairn India rose over 1% as the company has acquired 60% in offshore Block 1 in South Africa.

ITC bounced back with marginal gains after more than 3% fall yesterday due to sentiment effect.

IDFC, BHEL, Infosys and Tata Steel too gained. However, Sterlite Industries, Sesa Goa, SAIL, Wipro continued to trade lower.

The CNX Midcap Index moved up 28 points to 7,314 as about two shares advanced for every share declining on the National Stock Exchange.

Ultratech Cements rose 0.5% and Lupin rallied over 2% as both stocks will be added in Nifty from September 28 in place of SAIL and Sterlite.

In the second line shares, Mastek surged 4.5% and Geodesic shot up 7%.

SKS Microfinance, Manappuram Finance, United Spirits, Alok Industries, Great Offshore, Delta Corp, Shree Renuka Sugars, PFC and REC were up 1-4%.

Jain Irrigation declined over 1% after falling 8% yesterday due to disappointing results in Q1.