Markets wind up day ahead of Inflation in green

The Indian markets closed today's volatile session on a flat note. The Sensex inched 18 points higher while the Nifty rose by 6 points. Major Headlines: RCom surges on nod for Flag Telecom listing Auto stocks dip on increase in excise duty on diesel cars UB Group on a high spirit, UB Holdings rallies 20% Rate cut expected on June 18, but will it help? Go Gold: An in-depth analysis of investing in the yellow metal! Indian Indices It was a healthy trading day for the Indian markets. Although the markets opened the session on a negative note but the pendulum kept swinging between the green and red zone. The key indices hit their intraday high levels in the afternoon session and closed today's trade on a positive note oscillating on both sides of the equator. The sectors like capital goods, FMCG, HC, technology, PSU and oil & gas led support to the markets today, while realty, auto, consumer durables, power, metal, banking added pressure. The major heavyweight gainers were- L&T, ONGC, HUL, ICICI Bank, Infy, Sun Pharma and SBI. The spectators are keenly waiting for inflation data of May that will be announced tomorrow (June 14, 2012) because Inflation rate after a flat industrial output for April will be a major factor for the RBI while taking decision on monetary easing. Strong expectations have been building up since last month that the central bank may cut repo rate or CRR by 50 bps to give a boost to sluggish economic growth. The broader market too ended trade on a mixed note. At the end, the BSE Midcap index declined by 0.20%, while the BSE Smallcap index was up by 0.15%. The Sensex closed at 16,880.51, up by 17.71 points and the Nifty rose by 5.55 points to close at 5121.45. Today's stock specific action; Reliance Communications (RCom) surged 4% on the BSE, as the Singapore stock exchange approved its undersea cable unit for an IPO that could raise more than $1 billion. At the end, the stock closed 2.62% higher. In the news was the largest coal mining company Coal India, which rose after sources said that PMO would hold meet with Coal Ministry and company's CMD on June 22, 2012 to look after coal production. The stock closed 0.66% lower at the end of the day. Another highlight for the day was liquor baron Vijay Mallya-led UB group's United Breweries, United Spirits and Kingfisher Airlines, which surged in the range of 5-8%. United Breweries Holdings shot up 19%. According to market reports Diageo, the world's leading spirits, wine and beer firm is said to be in the race to pick up USL stake, as the UB Group is looking to sell stake in USL to repay debt. The stocks like United Breweries was up by 7.18%, United Spirits up by 6.37%, KingFisher Airlines up by 6.29% and United Breweries Holdings was up by 20% at the end of the trading session On the sectoral front, auto stocks fell on reports that the government plans to impose additional levies of Rs170,000 on small diesel cars and Rs255,000 on medium and large diesel vehicles such as sedans and SUVs. At the end of the day, Tata Motors fell by 2.10%, Maruti fell by 3.38%, M&M fell by 1.75%, Hero Motocorp fell by 1.72%. Talking about telecom stocks, the stocks rose on reports that the Reserve Bank of India has allowed telecom companies to mortgage spectrum to raise funds from banks. At the end of the day, the telecom stocks like Bharti Airtel fell by 0.34%, Idea Cellular fell 1.79%, Reliance Communications up by 2.62% and Tata Teleservices (Maharashtra) ended up by 2.86%. Market sentiment: The market breadth stood in favour of advances. Of the 2849 stocks traded on the BSE, 1403 (49.25%) rose, 1301 (45.67%) fell and 145 (5.09%) stocks remained unchanged Sectoral & stock screening: Among the 13 sectoral indices, six sectors closed in red zone, and remaining seven closed in green zone. Top Gainers: BSE CG (up by 1.58%), BSE FMCG (rose by 1.06%), BSE HC (surged by 0.45%). Top Losers: BSE Realty (down by 1.47%), BSE Auto (fell by 1.47%), BSE CD (declined by 0.92%). Among 'A' group stocks, top three gainers were- UB Group (rose by 7.18%), United Spirits (up by 6.37%) and IGL (surged by 4.79%). Top three losers were- Oberoi Realty (down by 4.15%), Maruti Suzuki (declined by 3.38%), and Voltas (fell by 2.99%). Global signals: Europe's top shares crept higher on Wednesday as investors cautiously topped up holdings ahead of a potentially tumultuous weekend when Greece holds fresh elections, with gains seen limited as broader euro zone tensions temper risk appetite. Gains were seen in the Asian markets where few large cap stocks boosted Japan's Nikkei share average today, but the broader market was weak as investors remained concerned about Spain's struggle to finance its debt and looming elections in Greece. US stock index futures pointed to a slightly lower opening at the Wall Street on Wednesday Market Outlook: Data to be released in the US on Wednesday: Producer Price Index, Retail Sales, Business Inventories, EIA Petroleum Status Report.