RTTNews - While a rally on Wall Street overnight helped the Indian market open on a positive note Thursday, it pared all its early gains subsequently to end flat amid profit taking and concerns about monsoon.
However, according to a forecast made by India's weather office, there has been a pick up in monsoon activity in western regions and the June monsoon deficit has been made up in the first half of July. Further, widespread rainfall is forecast in most regions in the next five days, paving way for a near normal monsoon rainfall and a near normal kharif harvest, which would have a positive impact on economic growth.
On the other hand, India's annual rate of inflation fell for the fifth straight week, but at a slower pace due to a rise in fuel prices, government data released on Thursday showed. The headline inflation rate dropped 1.21% in the week to July 4 after declining 1.55% in the previous week. The inflation rate rose 12.19% during the corresponding week a year ago.
The BSE Sensex hit a high of 14,493 and a low of 14,170 during the day on alternate bouts of buying and profit taking. The Sensex finally ended the session at 14,250, down 3 points or a mere 0.02% from its previous close. Likewise, the S&P CNX Nifty also closed mostly unchanged at 4,231 compared to its previous close of 4,233.
However, the broad-based BSE 500 index rose 0.13%, the mid-cap index gained 0.24% and the small-cap index added 0.39%. On the BSE, gainers outnumbered losers by 1465 to 1131 and 93 stocks closed unchanged. Sector-wise, while auto, oil/gas and consumer durable stocks bucked the subdued trend to end sharply higher, capital good stocks bore the brunt of the selling. Metal, power, banking and realty stocks also ended in the red.
Sterlite(down 6.12%), Reliance Infrastructure(down 3.97%), Jaiprakash Associates(down 3.66%), Larsen & Toubro(down 3.65%), HDFC(down 2.07%), SBI(down 1.62%), DLF(down 1.46%), ACC(down 1.25%) and ONGC(down 1.16%) were the top losers.
However, Maruti Suzuki, Reliance Industries, Hero Honda Motors and Reliance Communication ended up over 3% each. NTPC, Tata Motors, Tata Steel, BHEL, Wipro, Bharti Airtel, Mahindra & Mahindra, HDFC Bank, Infosys and Sun Pharma also closed in positive territory.
Larsen & Toubro tumbled 3.65% despite reporting a 13% rise in its June-quarter net profit after exceptional items. Bajaj Auto soared over 5% on the back of a 67% rise in its June-quarter net profit despite a decline in vehicle sales. Hero Honda Motors advanced 3.10% and TVS Motor climbed 10%.
Lanco Infratech slumped 5.47% on reports that it has received a letter from Maharashtra State Electricity Company informing the cancellation of the entire bid process for the Dhopave power plant project, for which the company was chosen as the lowest bidder in February.
Indian Hotels ended down 0.49% on reports the company is restructuring its budget hotel brand 'Ginger' for launching overseas operations. Panacea Biotec rose 2.60% on reports that it is one among several companies, which has received the Indian drug regulator approval to start tests, analyze and develop a vaccine for the H1N1 swine flu virus.
Alembic added 2.31% after it reportedly raised Rs.50 crore through the sale of three-year bonds.
Sterlite Industries slumped 6.12% after it revealed plans to raise $1.5 billion through the issue of securities in the U.S. market to develop its power generation business in India, meet its planned capital expenditure and fund potential acquisitions.
Zee Entertainment Enterprises jumped over 10% despite reporting a 5.6% fall in its June-quarter consolidated net profit. Tata Steel rose 1.29% after its unit raised its stake in Australia's Riversdale Mining to 19.38 percent.
Navneet Publications gained 3.60% after announcing a bonus issue. Everest Kanto Cylinder advanced 3.87% on the back of a block deal on the BSE. Mahindra & Mahindra ended up 0.33% after a decent debut of its unit Mahindra Holidays & Resorts India.
Adlabs climbed 11.26% after the Anil Ambani group joined hands with Steven Spielberg's DreamWorks Studios for a joint venture where he would initially invest Rs.4,000 crore.
Oil explorer Cairn India and ONGC ended in the red after crude oil reversed its early gains, while Reliance Industries rose 3.16% on bargain hunting after a recent sharp fall. State run oil-marketing companies HPCL, BPCL and IOC also ended in the red after slashing jet fuel prices by 5.7 percent.
Polaris Software Lab ended up 0.49% after its consolidated net profit for the June quarter rose 18% year-over-year. TCS edged down 0.49% ahead of the announcement of its quarterly results post market hours on Friday.
On the BSE, Reliance topped the traded value chart with a turnover of Rs 326.72 crore, followed by Aban Offshore (Rs 262.32 crore), Larsen & Toubro (Rs 229.86 crore), Tata Steel (Rs 221.29 crore) and Reliance Capital (Rs 188.56 crore).
Suzlon led the traded volume chart with trades of 16.1 million shares, followed by Reliance Natural Resources (16.1 million), Unitech (12.1 million), Tata Steel (5.6 million), HDIL (4.9 million).
Elsewhere, the other Asian markets ended mostly higher, but were off their highs. The markets across Europe witnessed a mixed trend after three days of gains ahead of earnings from JP Morgan, IBM and Google and the U.S. stock futures pointed towards a lower opening on Wall Street Thursday, as traders turn their attention to the failure of discussions between lender CIT and the Treasury Department.
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