Sensex closes flat; Tata group stocks fall for 2nd day

The NSE Nifty closed lower for the fifth consecutive session on Tuesday, weighed down by capital goods, oil & gas, steel, auto and power stocks. The market opened the trade with more than 100 points gap up following positive Asian cues, but that could not sustain for long as traders opted to book profits (amid monsoon worries) in second half of trade.

The BSE benchmark rose 1.99 points to close at 17,105.30 while the NSE benchmark declined 4.4 points to 5,192.85. But the broader markets fell more than benchmarks - BSE Midcap and Smallcap indices were down over 0.8%.

Tata group stocks slipped for the second consecutive session. Country's largest software services exporter TCS tanked 2% and top commercial vehicle maker Tata Motors was down 1.5%. Tata Steel and Tata Power went down 0.7% each.

Two-wheeler manufacturer Bajaj Auto topped the selling list, losing 2.43% (ahead of earnings tomorrow) and utility vehicle maker Mahindra & Mahindra was down 1.66%.

Index heavyweight Reliance Industries went down after the company warned the government that output at KG D6 may stop by 2015 if fresh capex was not announced, according to sources.

State-owned oil & gas producer ONGC fell 1.3%. Power equipment manufacturer BHEL dropped 1.6% and engineering and construction major by sales Larsen & Toubro slipped 0.4%.

Among metals and mining stocks, Sterlite Industries and Jindal Steel plummeted around 0.8% whereas Hindalco rose 1% and Coal India gained 0.8%.

Top telecom operator Bharti Airtel trimmed gains to 0.4% from around 3% due to profit booking. Yesterday the stock had rallied 4%.

Software services exporter Wipro rose nearly 2% while its rival Infosys was flat.

Axis Bank fell 2% on rising non-performing assets during the first quarter. Its net profit rose more than 22% year-on-year to Rs 1,150 crore, boosted by a robust loan book that grew nearly 30% y-o-y to Rs 1.71 lakh crore. However, the lender's net non-performing asset (NPA) ratio increased to 0.31% from 0.25% in January-March quarter. Similarly, gross NPA ratio too rose to 1.06% as against 0.94% sequentially.

Country's largest lenders State Bank of India, ICICI Bank and HDFC Bank closed flat.

Healthcare stocks like Dr Reddy's Labs and Sun Pharma gained 1.7% and 1.3%, respectively. Cigarette major ITC went up 1.55%.

In the second line shares, Cadila Healthcare surged nearly 5% after the US Food and Drugs Administration (FDA) gave a clearance to the company's facilities at Moraiya in Gujarat. Cadila Healthcare.

Hercules Hoists rallied 12% ahead of earnings. Crompton Greaves, United Spirits and Mahindra Satyam were up 1-1.7%.

However, Adani Enterprises, Adani Power, Shree Renuka, Bajaj Hindusthan and Indiabulls Real Estate were down 3-8%.

Anil Dhirubhai Ambani Group stocks like Reliance Infrastructure, Reliance Power and Reliance Communications tanked 2-3.5%.

About two shares declined for every share advancing on the National Stock Exchange.

On the global front, US stock index futures pointed to a higher open on Wall Street today (gained 66 points) as investors speculated Federal Reserve chairman Ben Bernanke may give fresh clues about further stimulus measures after a series of weak economic reports pointed to a slowdown in the economy. (With inputs from CNBC.com)

Among Asian markets, Shanghai, Nikkei, Kospi, Straits Times and Taiwan Weighted went up 0.2-0.6% while Hang Seng rallied 1.75%. European markets were mixed.

Indian stock markets have been awash with worries about a weak monsoon, but a look at the historic performance of the Sensex the June-September season may dispel those fears.

Lack of monsoon rain may not mean stocks pain
Stock investors tend to track the monsoon season, given lower-than-expected rainfalls can raise inflation worries and hit rural consumption.

However, a look at how Sensex has performed over the monsoon season shows little actual impact from rainfalls. In 2009, a year when India suffered a drought, the BSE index went on to gain 17.1% during the June-September period.

In fact, the Sensex has only fallen twice during periods of short monsoon rainfalls in the past 10 years: when the global financial crisis was percolating in 2008 and during the midst of global bear markets in 2002.

Indian equity benchmarks were completely lacklustre in trade as ITC, Bharti, ICICI Bank and SBI were supporting the market whereas TCS, ONGC and auto stocks were under pressure. Index heavyweight Reliance Industries too was quite volatile in trade today after sources said the company warned government saying gas output at KG-D6 may stop by 2015.

The 30-share BSE Sensex rose 28 points to 17,131.03 and the 50-share NSE Nifty gained just 4 points at 5,201. The Indian rupee was quite volatile today, appreciating by 33 paise to 54.96 against the US dollar.

Country's largest software services exporter Tata Consultancy Services tanked more than 2% while its rival Wipro gained over 1%.

Two-wheeler maker Bajaj Auto plunged nearly 3% ahead of first quarter numbers tomorrow. Commercial vehicle manufacturer Tata Motors and utility vehicle maker M&M were down 0.5-1% whereas Hero Motocorp and Maruti were flat.

State-owned oil & gas producer ONGC and power equipment manufacturer BHEL declined 0.5%-0.8%.

Among metals stocks, Sterlite Industries and Tata Steel fell over 0.6% whereas Jindal Steel and Hindalco gained 0.5-1%.

The 50-share NSE Nifty and 30-share BSE Sensex were trading with marginal gains following positive European cues. France's CAC, Germany's DAX and Britain's FTSE rose 0.2-0.5%. The Dow Jones futures gained 66 points ahead of Federal Reserve meet that scheduled for two days.

The BSE benchmark rose 49 points to 17,152.64 and the NSE benchmark gained 13 points at 5,210. Even the Indian rupee, which showed nice recovery of 43 paise in morning trade, trimmed gains to 17 paise to 55.13 against the US dollar.

Index heavyweight Reliance Industries turned flat after sources said the company has warned Indian government saying gas output at KG-D6 may stop by 2015. RIL and its partner BP told Government of India to approve FY13 capex to avoid shutdown, say sources.

Top software services exporter TCS extended losses, falling 2.5% while its rival Infosys reversed earlier gains.

Bajaj Auto, country's second largest two-wheeler manufacturer, tanked 2.5% ahead of first quarter earnings tomorrow.

Private sector lender HDFC Bank dropped 0.4% whereas top lenders State Bank of India and ICICI Bank gained 0.5%-0.8%.

State-owned power equipment manufacturer BHEL and power producer NTPC were up around 0.5%.

However, top telecom operator Bharti Airtel shot up nearly 3% while healthcare stocks like Dr Reddy's Labs and Sun Pharma jumped 2-2.5%.

The broader markets turned lower as declining shares outnumbered advancing by 804 to 568 on the National Stock Exchange.

The BSE Sensex and NSE Nifty erased somewhat gains as the Indian rupee too trimmed gains. Asian markets too were trading off day's high - Shanghai, Nikkei, Straits Times, Kospi and Taiwan Weighted were up 0.3-0.6% while Hang Seng gained 1.6%.

The BSE benchmark moved up 56 points to 17,159.13 and the NSE benchmark gained 14 points at 5,211.40. Even the market breadth turned neutral.

Country's largest software services exporter TCS tanked more than 2% for second consecutive session whereas its rival Infosys trimmed gains to 0.16% from 0.7%.

Top private sector lender ICICI Bank rose nearly 1% while its rival State Bank of India was up 0.66%.

Cigarette major ITC, oil & gas producer Reliance Industries, housing finance company HDFC and FMCG major HUL were up 0.6% each.

Telecom operator Bharti Airtel gained nearly 2%. Healthcare stocks like Dr Reddy's Labs and Sun Pharma remained higher by 2% while Cipla rose 1%.

Shares of Larsen & Toubro, Tata Motors, ONGC, Coal India and HDFC were trading marginally higher.

Bajaj Auto, second largest two-wheeler company, dropped 2% and state-owned power equipment manufacturer BHEL declined 0.6%.

In the second line shares, Glodyne Tech, Shree Global, Biocon, Bajaj Finance (after results) and EID Parry rallied 2.5%-5% while Jaypee Infra, ALSTOM India, Shree Renuka, Alstom T&D and Bajaj Hindusthan lost 3-4%.

The BSE Sensex gains 0.6 percent, while the 50-share Nifty advances 0.55 percent. Bargain-hunting after the indexes fell for the previous four consecutive sessions driving the gains.

BSE Sensex recovers; Infosys gains
Infosys gains 0.72 percent, after falling 12.1 percent for three consecutive sessions.

Energy conglomerate Reliance Industries gains 1 percent after falling 2.4 percent this month as of Monday's close, under-performing the 1.6 percent fall in the main NSE index.

However, gains in Indian shares lag the 1.2 percent gain in the MSCI Asia-Pacific ex-Japan index, which rose on short-covering and bargain-hunting ahead of Fed Chairman Ben Bernanke's Congressional testimony later in the day.

Indian equity benchmarks continued to hold early gains due to buying interest in oil & gas, financials, FMCG, healthcare, power and metals stocks. The Indian rupee too appreciated by 49 paise to 54.81 against the US dollar.

The BSE benchmark gained 100.22 points at 17203.53 and the NSE benchmark rose 28 points to 5,225.40 after a fall in previous four sessions.

Asian markets too maintained morning gains ahead of Federal Reserve meeting today and tomorrow - Hang Seng surged 1.75% while Shanghai, Nikkei, Kospi and Straits Times were up 0.55%-0.75%. Taiwan Weighted rebounded with 0.2% gains.

Back home, cigarette major ITC went up 0.9% and top telecom operator Bharti Airtel rallied 2% (rising for second consecutive session as it had shot up 4% yesterday).

Country's largest private sector lender ICICI Bank moved up over 1% while its rival State Bank of India was up 0.6%.

Oil & gas producers Reliance Industries and ONGC gained nearly 1% and 0.7%, respectively.

Infosys, India's No. 2 software services exporter bounced back, rising 0.7% after a fall in three previous sessions due to disappointing numbers in Q1. However, its rival TCS dropped 1.3%, losing for second consecutive session today.

Healthcare stocks like Dr Reddy's Labs, Ranbaxy Labs and Sun Pharma rallied 2% each on value buying while Cipla rose 1%.

Housing finance company HDFC and FMCG major HUL moved up 0.6% each.

Metals stocks, which tanked yesterday, gained quite smartly. Tata Steel, Sterlite Industries, Hindalco and Jindal Steel were up 0.4-1%.

Engineering and construction major by sales Larsen & Toubro went up 0.3% whereas state-owned power equipment manufacturer BHEL fell 0.7%.

The broader markets were up 0.5% as about two shares advanced for every share declining on the National Stock Exchange.

The 30-share BSE Sensex started off trade with more than 100 points gap up following positive Asian cues on Tuesday. Banking, infrastructure, pharma and auto stocks were driving the market higher.

The market bounced back as it may be looked oversold in previous four sessions. The BSE benchmark rose 108 points to 17,211.49 and the NSE benchmark gained 30 points at 5,226.85.

Rising Indian rupee too was quite supportive; it appreciated by 41 paise to 54.88 against the US dollar.

Larsen & Toubro, Axis Bank, PNB, State Bank of India, HDFC Bank, ICICI Bank, Coal India, Sun Pharma, Dr Reddy's Labs, Cipla, Hindalco, Tata Steel, TCS, Hero Motocorp, Maruti and Tata Motors were on buyers' radar in early trade.

HUL, ACC, Reliance Industries and SAIL were marginally higher.

However, GAIL lost over 2% after PNGRB has slashed company's tariff for Dadri-Nangal pipeline by 57%.

BPCL was down over 1% on rising crude oil prices.

Asian markets reversed course to trade higher as investors awaited Federal Reserve Chairman Ben Bernanke's view on the US economy later in the day, after weak US retail sales and a lower International Monetary Fund global growth forecast raised hopes of more stimulus from the Fed.

Shanghai, Nikkei, Straits Times and Kospi gained 0.6%-0.9% while Hang Seng rallied 1.8%.

Back home, the CNX Midcap Index rose 35 points to 7,426. About three shares advanced for every share declining on the National Stock Exchange.

In the second line shares, Tata Coffee was up 2% and Exide Industries moved up nearly 1% post first quarter earnings.

SKS Microfinance rose 0.7%. Bajaj Hindusthan gained more than 1%.

NCC, IVRCL, HDIL, Indiabulls Real, Praj Industries and OnMobile Global were up 1-3%.

Rice stocks: KRBL jumped 2.5% and Kohinoor Foods was up 4%.

Bajaj Finance rose 1.3% ahead of earnings today. Company had reported strong numbers in previous quarter.

Kingfisher and United Spirits were up over 0.5%

Textile stocks: Alok Industries, S Kumars Nationwide and Arvind gained more than 1%,

(With inputs from CNBC.com)