The markets started the first trading day of the new financial year on a flat note, marking the beginning of the second quarter of the calendar year 2012. Currently, the BSE Sensex is at 17,471, up 67 points while the Nifty is at 5,309, up 13 points.
Indian equity markets lost momentum during FY12 after successive gains in past two financial years. The Sensex declined around 10% each in FY12, despite the 13% rally in the fourth quarter (January-March).
“Since there are no visible positive triggers in the short term, equity markets are likely to remain lacklustre and may witness a downside of around 10 per cent from current levels,” said Motilal Oswal, CMD, Motilal Oswal Securities.
In Asia, Japan's Nikkei average looked poised to snap a three-day losing streak on Monday after stronger-than-expected data from China eased worries of an economic hard landing, while buying by domestic investors provided support. The index is at 10,164, up 1%. The Shanghai Composite index has gained 0.47% while the Hang Seng has index has shed 0.48%.
On the sectoral front, BSE Consumer Durables, Realty, Auto and Bankex indices are leading the gains, up 1-3% each.
Titan Industries, Whirlpool of India and Blue Star, up 2-5% each, are the major gainers from the Consumer Durables' space.
From among the Auto stocks, Mahindra & Mahindra, Tata Motors and Ashok Leyland, up 1-2% each, are the prominent gainers. Tata Motors is trading higher by 2% at Rs 280 on reporting 20% year-on-year growth in total sales at 100,414 vehicles for the month of March 2012. The automobile major had sold total 83,363 vehicles (including exports) of Tata commercial and passenger vehicles in the previous corresponding month.
M&M, on the other hand, is trading higher by 1% at Rs 709 after reporting 25% increase in sales at 47,001 units in March 2012, the highest ever monthly sales number in the history of the company. It had sold 37,522 units in the same month in 2011.
BSE Oil & Gas, Healthcare and FMCG indices, down marginally, are among the only ones in the red.
Notable gainers include M&M, Gail(India), TCS, Tata Motors and DLF, up 1% each. The losers from the pack are Coal India, Sun Pharma Industries, down 1-2% each. Reliance Industries, Sterlite Industries and Hindustan Unilever are down marginally.
The overall market breadth is positive as 894 stocks have advanced against 340 declining ones, on the BSE.
