Sensex ends flat to higher; banks, FMCG, oil exploration up

Indian shares closed flat to higher on Monday after recouping losses in afternoon trade following positive European cues. The 50-share NSE Nifty went closer to 5700 level with the index hitting an intraday high of 5,693.70, before closing with gains of 11.20 points at 5,687.25.

Banks, FMCG, healthcare and oil & gas exploration stocks helped the Sensex finishing higher with gains of 38.37 points at 18,713.55.

The much awaited inflation came in at 7.81 percent for the September, which was slightly higher compared to 7.55 percent in August. But that was largely in-line with analysts' expectations of 7.73 percent.

European markets gained after Chinese data offered evidence for stronger than expected global growth, but uncertainty over when Spain might request a bailout weighed on investors. (With inputs from Reuters)

France's CAC was up 1.4 percent while Germany's DAX gained 0.8 percent and FTSE rose 0.5 percent.

Data over the weekend from China, the world's second largest economy, showed inflation subdued in September while exports had rebounded at nearly twice the rate expected, helping to dispel concerns ahead of Chinese GDP numbers on Thursday which are still expected to point to slight slowdown.

The BSE Sensex and NSE Nifty were consistently hovering around their previous closing values. The buying in ITC, Reliance Industries, Bharti, ONGC and banking stocks counterbalanced the fall in L&T, steel, technology and auto stocks.

The 30-share BSE benchmark gained 4 points at 18,678.99 and the 50-share NSE benchmark rose 0.2 point to 5,676.25. The broader markets too were flat as the market breadth was neutral.

Engineering conglomerate Larsen & Toubro, steel producer Sterlite Industries and software services exporter Infosys fell over 1 percent.

Commercial vehicle maker Tata Motors and top IT services exporter TCS lost 0.6 percent each while country's largest car maker Maruti Suzuki plunged 2 percent.

Oil & gas producers Reliance Industries, which is going to declare its second quarter earnings later in the day, and ONGC gained 0.5 percent each.

FMCG majors ITC and Hindustan Unilever were up 0.85 percent and 0.4 percent, respectively.

Telecom operator Bharti Airtel, private power producer Tata Power and drug producer Cipla went up 1 percent each.

India's largest lenders State Bank of India, ICICI Bank and HDFC Bank moved up 0.2 percent each.

A revival in the Indian stock markets seems to have begun attracting overseas investors, as FIIs increased their stake in a majority of Sensex companies, including Infosys , HDFC and ICICI Bank , in the July-September quarter. Most of the foreign entities trade in Indian stocks through FII (Foreign Institutional Investors) route and data show that 17 of the 30 Sensex companies witnessed an increase in their respective FII holdings during July-september quarter of the current fiscal.

Amongst the 19 Sensex firms that have disclosed their latest quarter shareholding pattern, FIIs have reduced their stake in only two companies -- Coal India and Hero MotoCorp . The companies where FIIs raised their stake also include Infosys, HDFC, ICICI Bank, GAIL , Jindal Steel & Power , BHEL , HUL , L&T and HDFC Bank .

Market analysts believe that FIIs have adopted bullish stance on India's growth story and hiked their shareholding in blue-chip firms primarily due to various reforms initiative taken by the government. "FIIs are betting on big corporates on account of reform measures undertaken by the government," Wellindia President (Research) Vivek Negi said.

Another market analyst Sudip Bandhopadhyay MD and CEO at Destimoney Securities said, "FIIs have not lost their charm for India and have been investing in the country throughout the calender year. I believe the trend would continue in the coming months as well."

The Sensex comprises 30 top stocks and is considered a barometer index of the Indian market. The average FII holding in these companies is about 22 per cent. During the quarter, the largest increase in FII holding was recorded by housing loan major HDFC. The FII stake in HDFC rose from 66.74 per cent in April-June quarter to 68.72 per cent in the three months ending September 30, this year.

Also, FII holding in ICICI Bank rose by 1.55 percentage points to 36.4 per cent, followed by Infosys, whereby FII stake grew by 1.53 percentage points to 39.42 per cent. FIIs also consolidated their stakes in Bajaj Auto , ONGC , Maruti Suzuki , State Bank of India (SBI), Sterlite Industries and Tata Power .

In contrast, foreign funds scaled down their holding in Hero MotoCorp by 0.87 percentage points to 32.34 and by 0.03 percentage points to 5.52 per cent in Coal India. During the quarter, FIIs invested a hefty sum of a little over Rs 40,000 crore on the back of a slew of reforms initiated by the government, pushing the broader market Sensex to surge over 1,300 points or more than seven per cent.

Indian equity benchmarks bounced back with marginal gains following uptrend in European markets. Country's largest lenders State Bank of India, ICICI Bank and HDFC Bank too recouped early trade losses, rising 0.2-0.5 percent while the index heavyweight Reliance Industries extended gains to 1 percent.

The 30-share BSE Sensex gained 15.38 points at 18,690.56 and the 50-share NSE Nifty rose 3.55 points to 5,679.60. The Indian rupee too trimmed losses from 33 paise to 13 paise to trade above 53 level at 52.93 against the US dollar.

Aluminium major Hindalco Industries topped the buying list with 1.7 percent gains while drug producer Cipla and private power producer Tata Power were up over 1 percent.

State-run power equipment maker BHEL, two-wheeler maker Bajaj Auto and utility vehicle maker Mahindra & Mahindra gained 0.5 percent each.

Country's largest car maker Maruti Suzuki fell 2 percent. Among Tata groups, Tata Motors and TCS were down 0.4 percent each.

Engineering and construction major Larsen & Toubro and software services exporter Infosys dropped nearly 1 percent.

In the second line shares, DB Realty, Tulip Telecom, Jyothy Labs, Balrampur Chini and Infotech Enterprises rallied 4-5 percent while TTK Prestige, Bombay Dyeing, GRUH Finance, Monnet Ispat and Federal Bank lost 2.5-5 percent.

France's CAC, Germany's DAX and Britain's FTSE gained 0.25-0.9 percent amid news that Spain may be edging closer to seeking a bailout and positive data for the Chinese economy.

Indian equity benchmarks remained slightly down due to weakness in rate sensitives. The less hopes of rate cut by the Reserve Bank of India in a policy meeting on October 30 following the inflation, which is above comfort level of 5-6 percent, dampened sentiment somewhat.

Inflation rose by 26 basis points month-on-month to 7.81 percent in September, which was largely in-line with analysts' expectations of 7.73 percent.

The 30-share BSE Sensex lost 60 points to 18,615.06 and the 50-share NSE Nifty fell 20 points to 5,656.25.

Infosys, country's second largest software services exporter went down over 1 percent following a decline of 5 percent on Friday due to disappointing guidance for FY13.

Its rival TCS, which will declare its September quarter earnings on Friday this week, fell 0.6 percent.

Private sector lender ICICI Bank and housing finance company HDFC were down 0.6-0.7 percent.

Commercial vehicle maker Tata Motors lost 0.7 percent while top car maker Maruti Suzuki plunged 2 percent.

Index heavyweight Reliance Industries rose 0.5 percent since early trade ahead of quarterly earnings later in the day.

Utility vehicle maker Mahindra & Mahindra and two-wheeler maker Bajaj Auto were up 0.6 percent each.

Drug producer Cipla and aluminium major Hindalco Industries went up 1.15 percent each.

Indian shares continued to trade marginally lower since early trade, weighed down by banking & financials, auto, technology and capital goods stocks. Inflation came in at 7.81 percent for September, which was slightly higher compared to 7.55 percent in August and in-line with analysts' expectations of 7.73 percent.

Inflation is still above the Reserve Bank of India's comfort level of 5-6 percent. Therefore, experts feel the central bank will not go for cut in policy rates on October 30. Agam Gupta of Standard Chartered said rise in inflation would not justify for rate cut.

The 30-share BSE Sensex fell 69 points to 18,606.40 and the 50-share NSE Nifty lost 20 points to 5,656.50. The BSE Midcap Index was flat but the Smallcap gained 0.5 percent.

As economy is unstable and business dwindling, the July- September quarter is unlikely to post any strong earnings. Experts fear that this may not be taken well by the market. Nilesh Shah of Axis Direct is worried that the market may correct if earnings continue to disappoint.

However, he also feels that the market may consolidate at current levels. Shah explains that there was relentless buying by FIIs, pumping in more than USD 17.5 billion year-to-date (YTD) but there is hardly any supply against this and that is the result why markets have rallied.

The Indian rupee was trading below the 53 level at 53.14 against the US dollar, down by 33 paise.

Index heavyweight Reliance Industries rose 0.5 percent ahead of quarterly earnings today after market hours.

Country's largest lenders State Bank of India, ICICI Bank and HDFC Bank were down 0.5-0.9 percent.

Housing finance company HDFC, software services exporter Infosys, cigarette major ITC, engineering conglomerate Larsen & Toubro and commercial vehicle maker Tata Motors lost 0.4-0.7 percent.

Steel makers like Tata Steel and Sterlite fell 0.8-1.2 percent while aluminium major Hindalco Industries gained 1.4 percent.

Healthcare stocks outperformed with the Cipla, Sun Pharma and Dr Reddy's Labs rising 0.5-1 percent.

The 50-share NSE Nifty hit Friday's low today but managed to hold the 5650 level. Banking and financials, capital goods and auto stocks were under pressure ahead of inflation data today. Analysts on an average expect inflation to increase around 7.73 percent in September as against 7.55 percent in previous month due to hike in diesel price by Rs 5 a litre last month.

Today's inflation will be very important ahead of the Reserve Bank of India's policy meeting that is scheduled for October 30.

The BSE benchmark declined 48 points to 18,627.14 and the NSE benchmark was down 14 points to 5,662.45.

The Indian market has been subdued over the last few sessions. Jai Bala, cashthechaos.com says the market is setting up for a big decline in the medium-term.

Country's largest private sector lenders ICICI Bank and HDFC Bank were down 0.75 percent each while their rival State Bank of India was down 0.16 percent. Axis Bank, which will declare its results today, was flat.

State-run power equipment maker BHEL went down over 1 percent while engineering conglomerate Larsen & Toubro slipped 0.16 percent.

Cigarette major ITC, housing finance company HDFC and software services exporter Infosys were marginally down.

Telecom operator Bharti Airtel was down 1 percent. Auto stocks like Tata Motors, Maruti and Hero Motocorp moved down 0.6-1 percent while Bajaj Auto gained 0.65 percent.

Private oil & gas producer Reliance Industries rose 0.5 percent ahead of September quarter numbers later in the day.

Shares of Dr Reddy's Labs, ONGC, Tata Power, Hindalco, Jindal Steel and Cipla were up 0.3-0.7 percent.

The BSE Sensex fell marginally in early trade on Monday following dismal start to the earnings season by software bellwether Infosys. Globally too major companies started showing disappointing performance in the quarter ended September 2012 amid ongoing global economic growth concerns.

The 30-share BSE Sensex declined 40 points to 18,635.71 and the 50-share NSE Nifty slipped 12 points to 5,664.30.

Nandan Chakraborty of Enam said results season started with Infosys disappointing due to higher onsite and client support costs, without any major increase in client wins to improve its full year revenue guidance. H2 margins could worsen further due to salary hikes and consolidation of the Lodestone acquisition, he added.

"With the bulk of govt announcements behind us for now, market focus will now shift to Q2 results and speculation on the extent of interest rate cuts likely from the RBI."

Infosys shed another 1 percent after losing 5 percent last Friday due to disappointing guidance for FY13.

Tata Motors, BHEL, HUL, ITC, PNB, State Bank of India, ICICI Bank, HDFC Bank, GAIL, Hindalco and Sesa Goa were under pressure.

Axis Bank declined 0.5 percent while Reliance Industries gained 0.4 percent ahead of September quarter results.

The broader markets were flat but the advancing shares outnumbered declining by a ratio of 655 to 451 on the NSE.

In the second line shares, Deccan Chronicle Holdings plunged nearly 5 percent as The Economic Times reported that loans to Deccan Chronicle are under finance ministry scanner.

Pantaloon Retail fell another 1 percent following sharp fall in last week.

TV18 Broadcast rose 2.5 percent as its rights issue closes today. Network 18 Media gained 8 percent. (Moneycontrol.com and Television Eighteen Network are both part of the Network18 Group.)

UB Holdings, United Spirits and Kingfisher Airlines were up 2-5 percent. Kingfisher, which extended lockout till October 20, has invited employees for talks with UB group today.

Zee Learn and Zee Entertainment moved up 1 percent.

Shree Cement, India Cement and Heidelberg Cement gained 1 percent.

TTK Prestige lost another 2 percent following a decline of 10 percent post disappointing results.

Asian markets too were trading marginally lower on growth concerns ahead of September quarter earnings season. Shanghai, Hang Seng, Kospi and Taiwan Weighted fell 0.2-0.5 percent.