Sensex ends flat on Diwali eve; United Spirits rallies 35%

Indian shares closed flat with a negative bias on Monday ahead of muhurat trading session tomorrow. The market was positive in first couple of hours of trade ahead of September IIP data but much lower than expected industrial output data dented the sentiment in rest of the session.

Overall the market remained in a narrow range on Diwali day; the 30-share BSE Sensex fell 13.34 points to close at 18,670.34. The index was up 316 points before the muhurat trading session in 2011.

Meanwhile, the 50-share NSE Nifty was down 2.55 points to 5,683.70, which was near 5100 level before the previous year's muhurat trading session.

''The last twelve months have been obviously very tough and eventful for the markets, Ratnesh Kumar, MD & CEO, Standard Chartered Securities says.

''It has survived a period of extreme pessimism at the same time last year, to a partial restoration of the faith and belief. This year, in Asia, India is probably the only market which has received the maximum amount of FII flows. But the road towards sustained positive momentum is still a long way ahead,'' he explains.

Going forward, he would be slightly more optimistic on a three-six months' horizon than on 12-months' horizon.

Despite hopes that industrial slowdown may have bottomed out, the September Industrial output dropped to negative 0.4 percent much lower as compared to 2.3 percent in August and expectations of 3.2 percent, impacted by negative growth in capital goods, manufacturing and consumer goods sectors. Even the August output revised downward to 2.3 percent from 2.7 percent earlier (provisional).

C Rangarajan, chief of PMEAC, said the September IIP number was a disappointing figure, particularly when the August industrial production rate showed a pick-up. He said the government had initially estimated FY13 GDP growth rate at over 6.5% and later scaled it down to 6%. "But now it can be in the region of 5.5%," the advisor to the prime minister said, sounding cautious.

Consumber price index increased to 9.75 percent in October from 9.73 percent in previous month, driven by rising prices of food items such as sugar, pulses, vegetables and clothings. Wholesale Price Index inflation will be announced on Thursday.

The Indian rupee touched a two-month low today due to weak trade deficit data. It fell 27 paise to 55.02 against the US dollar at 15:31 hours IST. India's exports in October contracted 1.69 percent YoY to USD 23.2 billion due to the demand slowdown in US and European markets while imports rose by 7.37 percent to USD 44.2 billion in October, leaving a trade deficit of USD 20.96 billion.

The market will open for muhurat trading at 3:30 pm on Tuesday.

Country's largest lender State Bank of India gained 1.6 percent after the bank said would revise down July-September slippages by around 1,400 crore. On Friday, SBI had said July-September slippages were Rs 8,495 crore, sending its shares down 4 percent.

Private sector lender HDFC Bank rallied 1.9 percent while its rival ICICI Bank closed flat.

Top telecom operator Bharti Airtel gained 1.6 percent on auction day for 2G spectrum.

Software services exporters TCS and Infosys rose 0.5-0.7 percent.

Steel producer Tata Steel lost 1.7 percent as brokerages downgrade the stock after disappointing operating performance in second quarter.

Cigarette major ITC and two-wheeler major Hero Motocorp fell 1.6 percent.

Engineering conglomerate Larsen & Toubro and state-owned oil & gas producer ONGC were down 0.7 percent each. Index heavyweights Reliance Industries and HDFC slipped 0.2 percent.

In the second line shares, United Spirits rallied 35 percent as brokerages upgraded the stock after Vijay Mallya sold stake in the company to UK-based Diageo.

Radico Khaitan rose 5 percent on sentiment effect of the deal.

Shares of DB Realty, Indiabulls Real Estate, HDIL, MCX, Financial Technologies, Aurobindo Pharma and Marico rallied 3-10 percent.

Dhanlaxmi Bank surged 7.5 percent ahead of second quarter numbers this week.

Pantaloon Retail, Suzlon Energy, Orchid Chemical, BEML, Hindustan Dorr-Oliver, Manappuram General Finance, IVRCL, GVK Power down 1-4 percent following poor numbers in September quarter.

Declining shares outnumbered advancing by a ratio of 788 to 650 on the National Stock Exchange.

On the global front, Asian markets closed mixed while European markets were trading mixed too.

Indian shares were flat to negative, weighed down by auto and oil & gas exploration stocks. ITC and L&T too were under pressure whereas the gains in banks and technology stocks limited the downside. Country's largest lender State Bank of India rose 1.5 percent as the bank said would revise down July-September slippages by around Rs 1,400 crore but revision in slippages would not change NPA ratios.

SBI initially said July-September slippages were Rs 8,495 crore, which due to some double counting lifted by Rs 1,400 crore. The stock had fallen 4 percent on Friday.

The 30-share BSE Sensex was down 23.56 points to 18,660.12 and the 50-share NSE Nifty declined 4 points to 5,682.40.

Private sector lender HDFC Bank and top telecom operator Bharti Airtel went up over 1 percent. Software services exporters TCS and Infosys moved up 0.4-0.6 percent.

Cigarette major ITC, private oil & gas producer Reliance Industries and engineering conglomerate Larsen & Toubro were down 1 percent.

Shares of Tata Steel, Hero Motocorp and Tata Power fell over 1.5 percent.

State-run oil & gas producer ONGC, commercial vehicle maker Tata Motors and housing finance company HDFC declined 0.4-0.8 percent.

Real estate firm DLF dropped nearly 3 percent ahead of second quarter earnings. Analysts expect the profit after tax to fall by 20.6 percent year-on-year to Rs 295.9 crore in the quarter owing to higher interest expense.

In the second line shares, DB Realty, Balkrishna Industries, Radico Khaitan, Financial Tech and Aurobindo Pharma were up 4-7 percent while Shree Global, Manappuram Finance, BEML, Shoppers Stop and Schneider Electric lost 3-4 percent.

Indian shares remained in a consolidation mode as both benchmarks were hovering around their previous closing values. Banking stocks outperformed the market with the BSE Bankex rising nearly 1 percent as country's largest lender State Bank of India rose 0.9 percent after a drop of 4 percent on Friday. Private sector lenders ICICI Bank rose 0.5 percent and HDFC Bank was up 1 percent.

The 30-share BSE Sensex declined 23.25 points to 18,660.43 and the 50-share NSE Nifty was down 0.65 point to 5,685.60.

The Indian rupee fell by 26 paise to 55.01 against the US dollar following disappointing industrial output data. Index of Industrial Production dropped to -0.4 percent in September as against 2.3 percent in August due to dismal performance in capital goods, manufacturing and consumer goods sectors.

Robert Prior-Wandesforde, economist, India and Southeast Asia, Credit Suisse explains to CNBC-TV18 that he expects the IIP data to reveal an upside surprise and estimates that Consumer Price Inflation will fall and that will induce the RBI to cut rates in January. Consumer price index combined inflation for October increased to 9.75 percent as against 9.73 percent in September.

Software services exporter TCS went up 0.7 percent while its rival Infosys gained 0.2 percent.

Telecom operator Bharti Airtel was up 1 percent whereas index heavyweight Reliance Industries declined 1 percent.

Engineering conglomerate Larsen & Toubro, cigarette major ITC and state-run oil & gas producer ONGC were down 0.7 percent.

Steel producer Tata Steel and power producer Tata Power went down 2 percent and 1 percent, respectively.

Indian equity benchmarks erased early gains in the wake of disappointing industrial output data that fell to negative 0.4 percent in September as against 2.3 percent in August and expectations of 3.2 percent due to degrowth in capital goods, consumer goods and manufacturing sectors. Even the August IIP revised to 2.3 percent as against 2.7 percent (provisional).

The 30-share BSE Sensex was down 42 points to 18,643 while the 50-share NSE Nifty rose 8 points to 5,678.

Capital goods sector grew minus 12.2 percent in September as against minus 6.5 percent in a year ago period while manufacturing growth was minus 1.5 percent as against 3.1 percent. Consumer goods sector fell to minus 0.3 percent from 5.7 percent YoY.

Engineering conglomerate Larsen & Toubro and index heavyweight Reliance Industries were down 1 percent each.

Two-wheeler majors Hero Motocorp and Bajaj Auto dropped 1-1.4 percent. Top car maker Maruti Suzuki was down 1 percent.

Steel producer Tata Steel extended losses to 2 percent following lower than expected results in second quarter.

Cigarette major ITC, country's largest lender State Bank of India and software services exporter Infosys slipped 0.4 percent.

Telecom operator Bharti Airtel and India's biggest software exporter TCS gained 1 percent each.

Private sector lender HDFC Bank and commercial vehicle maker Tata Motors were up 0.5 percent. Shares of ICICI Bank and Hindustan Unilever moved up marginally.

The BSE Sensex remained lacklustre amid low volumes, tracking mixed global cues. Investors awaited for September industrial output data that may come in higher at more than 3% led by stronger core sector growth, according to CNBC-TV18 poll. This compares to the 2.7 percent in August which is a month on month pick up simply indicating that the trend would then be on the upside in the second half of the fiscal.

The 30-share BSE benchmark gained 18.31 points at 18,701.99 and the 50-share NSE benchmark rose 10.4 points to 5,696.65.

Country's largest telecom operator Bharti Airtel gained 2 percent as auction for 2G spectrum began today morning. Its rival Idea Cellular went up 1.5 percent.

United Spirits extended gains to 20.7 percent following the upgrade reports by brokerage firms after the stake sale deal between the UB group and UK based Diageo. JPMorgan has upgraded the stock to overweight and raised target of Rs 1645 on the stock while CLSA raised the target to Rs 1800.

Private sector lenders HDFC Bank and ICICI Bank gained 0.5-0.8 percent whereas their rival State Bank of India was down 0.2 percent.

Oil & gas producers Reliance Industries and ONGC fell 0.5-0.77 percent.

Top car maker Maruti Suzuki and country's largest coal mining company Coal India declined 1 percent each.

Shares of Infosys, HDFC, Hindustan Unilever and M&M moved up 0.5 percent. Software services exporter TCS rose 1 percent.

Orchid Chemicals dropped 3.5 percent as it has posted a loss of Rs 20 crore in the second quarter as against loss of Rs 23.4 crore in a year ago quarter. The company is also going to exit 50:50 manufacturing JV in China.

Advancing shares outnumbered declining by a ratio of 699 to 546 on the National Stock Exchange.

Indian equity benchmarks opened flat to positive on Monday following lacklustre trade in global markets. Technology, private banks, capital goods, FMCG and metals were on buyers' radar in early trade. Tata Steel (only among largecap metals) fell 1.5 percent following disappointing numbers in second quarter.

The 30-share BSE Sensex rose 32.41 points to 18,716.09 and the 50-share NSE Nifty was up 11.5 points at 5,697.75.

Country's largest private sector lenders ICICI Bank and HDFC Bank gained 0.6-0.9 percent while their rival State Bank of India dropped 0.3 percent due to rising bad loans.

Software services exporters TCS and Infosys were up 0.5-0.7 percent. Capital goods majors Larsen & Toubro were marginally higher.

Housing finance company HDFC was up 0.4 percent and telecom operator Bharti Airtel moved up 0.76 percent.

United Spirits rallied 10 percent following the stake sale deal with UK-based Diageo.

Results impact: Pantaloon Retail, SREI Infratech, MTNL, Lanco Infratech and Essar Oil gained 1-3 percent while IVRCL, Orchid Chemical, BEML, Sun TV and Suzlon were down 1-3 percent.