Mid Session Analysis: Indices mildly above the baseline

Indices mildly above the baseline
On Tuesday, the Indian benchmark indices trading mildly above the baseline on stock specific buying interest amid a mixed trend in the Asian markets.

Throughout the session, markers have been trading rangebound, with flattish upwards movement. Back on the domestic front, government will divest 5% equity in state-run BHEL as part of its plan to raise Rs 40,000 crore from disinvestment in the current financial year.

Spinning mills across the country shut down on Monday, stating that the fall in demand and prices of yarn has led to a huge build-up of stocks landing the industry in trouble. Besides, the broader market indices are trading mix as BSE Mid Cap grew by 0.02% and BSE Small Cap was down 0.11% respectively. The key benchmark indices are trading at BSE 30-share Sensex above 18,050 mark, while Nifty is above the 5,400 mark.

At 12:17PM BSE SENSEX was at 18050.32 up by 56.99 points or by 0.32 % and then NSE Nifty was at 5403.9 up by 17.35 points or by 0.32 %.

The BSE MIDCAP was at 6662.55 up by 1.08 points or by 0.02 %. while the BSE SMLCAP was at 8048.34 down by -8.68 points or by -0.11 %.

The BSE Sensex touched intraday high of 18109.05 and intraday low of 17996.34 The NSE Nifty touched intraday high of 5417.75 and intraday low of 5384.85

On the economic front, India's inventory of farm products is overflowing and expectation of a normal monsoon guarantees another bumper crop. Despite this, the only matter of concern remains to be the political disagreement regarding a bill to obtain food rights for the poor indicates that the country is anticipating steering clear of large-scale exports.

Further, shipments from the world's second-largest producer of wheat, sugar and rice would provide some assistance to all the governments across Asia who is struggling to tackle food-led inflation. However, India needs to examine how much to put aside for the food security bill ahead of making any decision on overseas sales. There is an ambiguity over when the food bill will be ratified by parliament.

Besides, Prime Minister Manmohan Singh intends to authorize the bill in parliament this year, but opinions of members of the National Advisory Council (NAC), which is assisting the government in designing the bill, and finance ministry officials think the target is too difficult to achieve.

On the corporate front, Aurobindo Pharma tumbled for a second day after a warning letter from the US FDA seeking a detailed action plan for improvement of its Hyderabad facility.

Kingfisher Airlines has announced its FY11 results. The company's total revenue for FY11 was Rs. 6496 crore which is a 23% improvement over FY10.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2,552, shares advanced were 1,166 while 1,270 shares declined and 116 were unchanged.

The top gainers of the BSE Sensex pack were Larsen & Toubro Ltd. (Rs. 1643.50,+1.90%), ICICI Bank Ltd. (Rs. 1022.50,+1.58%), Housing Development Finance Corporation Ltd. (Rs. 655.00,+1.14%), Cipla Ltd. (Rs. 312.90,+1.08%), Reliance Industries Ltd. (Rs. 916.95,+0.99%), among others.

In BSE, BSE_CGS index was at 12945.4 up by 139.31 points or by 1.09%. Alstom Projects India Ltd. (Rs. 557.00,+2.21%), Crompton Greaves Ltd. (Rs. 252.00,+2.00%), Larsen & Toubro Ltd. (Rs. 1643.50,+1.90%), Thermax Ltd. (Rs. 593.85,+1.18%), Havells India Ltd. (Rs. 381.50,+0.94%).

In BSE, BSE Realty index was at 1991.74 down by -36.62 points or by -1.81%. D B Realty Ltd. (Rs. 71.05,-5.89%), Unitech Ltd. (Rs. 31.05,-2.82%), DLF Ltd. (Rs. 217.50,-2.49%), Orbit Corporation Ltd. (Rs. 44.05,-2.00%), Godrej Industries Ltd. (Rs. 640.00,-1.91%).

The leading Asian bourses are trading mix as Straits Times and Hang Seng trading down by 0.02% and 0.13% while Seoul Composite and Nikkei 225 trading up by 0.29% and 0.10% respectively.

Read more about: bse, nse, nifty, sensex
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