Sensex ends flat in listless session…IGL plummets

The Indian stock indices ended almost unchanged at the end of another lackluster trading session, as market players preferred to stay on the sidelines ahead of important domestic events in the coming days. IIP, inflation and Infosys results will drive the sentiment in the remainder of the week. Market is also looking forward to next week's RBI monetary policy to gauge the central bank's view on macro-economic fundamentals.

The BSE Sensex ended at 17,244, up 22 points or ~0.2% over the previous close. It had earlier touched a day’s low of 17,135 and a day’s high of 17,274. It opened at 17,259.

The NSE Nifty settled at 5,244, up 9 points or 0.2% over the previous close. It touched a day’s low of 5,212 and day’s high of 5,256.



The INDIA VIX on the NSE ended lower by 1.8% to close at 22.42. It hit days high of 22.81. It hit a low of 21.73.

The BSE Mid-Cap index fell 0.3% while the BSE Small-Cap index dropped 0.1%.

Out of the 50 stocks in the Sensex index notable gainers were Tata Power, Tata Motors, HUL, SBI, ITC, Wipro, M&M, Sun Pharma and HDFC.

Among the major losers were BHEL, GAIL, Infosys, ONGC, Sterlite, Tata steel, Jindal Steel and Coal India.

The Indian indices did open with a slight positive bias despite weakness across the Asian markets. However, selling emerged as the day progressed. Capital Goods, IT and Metals stocks were among the top losers followed by Teck, Oil & gas and PSU indices.

On the other hand, the FMCG index was the biggest winner with a healthy gain of ~2% followed by Auto and Banking.

The Mid-Cap and Small-Cap indices were under pressure today. The market breadth was negative, with 1433 stocks declining versus 1334 stocks advancing.

Technically, the Nifty has formed a trend reversal pattern, indicating an indecisive trend in the short term. However, the lows and the highs will be critical in deciding the larger move in the market. That means 5210 and 5290 will turn out to be breakout points on either side for the Nifty.

"The next few sessions will see the key Indian stock indices react to IIP and inflation data apart from the Infosys results. Market participants are also cautious ahead of next week’s RBI policy meeting. External cues will also continue to play a role in driving the sentiment in the near-term.

For India, the biggest concern is the continued uncertainty over the proposed GAAR provisions. FII inflows have turned negative. In fact, even trading volume has taken a hit this month. The ball is in the Government’s court to clear the air surrounding this thorny issue and restore investor confidence," says Amar Ambani, Head of Research, IIFL.

Meanwhile, shares of Indraprastha Gas Ltd. (IGL) have been pounded out of shape after the Petroleum and Natural Gas Regulatory Board (PNGRB) reportedly ordered cuts in rates for CNG and PNG to Delhi consumers.

The price of compressed natural gas (CNG) in the capital could come down by 20% and of piped natural gas (PNG) by 10% in the wake of the PNGRB order, according to a business daily.

IGL, the monopoly supplier of gas in Delhi, may have to take a hit of ~ Rs. 10bn. The order has sharply reduced, with retrospective effect, network rates and compression charges. IGL is likely to challenge the PNGRB order.

Indraprastha Gas stock slipped 34% to close at Rs 229. The stock opened at Rs 301, hit an intra-day high of Rs 301 and intra-day low of Rs 187. Total volume on the NSE was ~40mn shares.

Shares of other gas utilities like Gail India, GSPL, Gujarat Gas and Petronet LNG have also taken a beating in the wake of the PNGRB order.

Asian markets finished mixed today with those not open for trading on Monday falling and others more stable. Stocks in China managed to pull back towards the close of trade, with the Shanghai Composite index rising by 0.9%. The Nikkei in Japan and the Kospi in South Korea both ended flat while the Hang Seng was down more than 1%.

European stock markets reopened on Tuesday after a four-day Easter break with sharp losses as investors reacted to last week’s weaker-than-forecast US jobs data. The Stoxx Europe 600 index was down ~1%.

The French CAC 40 index was down ~1.2% while the DAX in Germany lost ~0.9%. The FTSE 100 in the UK was down ~0.9%. The IBEX 35 index of Spain was down by 1.1% today while the FTSE MIB Italy index in Italy dropped ~2.4%.

US stock indices suffered their worst day in a month on Monday. The Labor Department last Friday said that US employers added 120,000 jobs last month, with the number below 200,000 for the first time since November. Equity markets in the US were closed on Friday for the Good Friday holiday.