Markets wind up with modest gains ahead of RBI policy

Indian markets resumed the trading session on a positive note but trimmed all of its morning gains by the end of session. The Sensex inched 10 points higher and the Nifty rose by 1 point in trade today. Major headlines: BHEL hits monthly low after Q2 results Bank of India slips over 6% after Q2 results India aims to cut fiscal deficit to 3% of GDP by 2017 Credit Suisse upgrades Wipro to outperform Indian indices: The Indian markets traded mixed with benchmark indices moving in a narrow range today. The equities remained highly volatile throughout the day and closed today's trading session in the green zone. Markets ended flat on the first trading day of the week. The BSE Sensex maintained its level at 18,600, while NSE Nifty shut shop over 5,650 marks. The Sensex closed 10 points higher while the Nifty rose 1 point in today's trade. Movement of the Indian indices for the day: The Indian markets started the first trading session of the week in the green zone. It was a complete dull session for the Indian equity benchmarks due to lack of local and global cues. The domestic markets were trading higher till the afternoon trade but later the equities witnessed a reversal trade which kept the key indices oscillating on both sides of the equator. The sectors like Oil & Gas, CD, HC, Technology and Auto led some support to the market, while the CG, Realty, Power, PSU, Banking, Metal and FMCG added pressure. The major heavyweight gainers were - RIL, ITC, HDFC Bank, Wipro, Bharti Airtel, M&M and Hero Motocorp. The weak opening of the European markets also weighed on the market sentiments. Further adding, investors are now awaiting for the major events like RBI’s monetary policy meet that is scheduled for tomorrow (October 30, 2012). At the closing bell, the BSE Midcap index and the BSE Smallcap index dropped 0.43% and 0.60% respectively. The overall market breadth was negative. The Sensex and the Nifty virtually remained unchanged from their previous close. The Sensex closed at 18,635.85, up by 10.48 points while the Nifty rose by 1.30 points to close at 5,665.60. Earnings: 1. BHEL declined 6.19% after posting weak quarterly earnings on every count. Profit after tax slipped 9.7% YoY to Rs1,274 crore as against expectations of Rs1,446 crore. 2. Bank of India slipped on reporting 38% year-on-year fall in net profit at Rs302 crore, due to higher provisioning for bad loans. At the end of the day, stock closed 2.46% lower. 3. JSW Steel rose after reporting a 547% year-on-year jump in standalone net profit at Rs822 crore in September 2012 mainly on higher volumes and rupee appreciation impact. The company had a profit of Rs127 crore in a year ago quarter. At the end of the day, stock closed 0.53% higher. Following are the stocks/ sectors which were in news today: 1. Wipro was the top Sensex gainer in today's trade. The stock jumped by 2.56%, after Credit Suisse upgraded the stock to 'outperform' from 'neutral' and raised target price to Rs415 from Rs385. 2. Index heavyweight Reliance Industries also ended higher by 1.53%, as new Petroleum Minister M Veerappa Moily today promised expeditious decision-making and said India should look at tripling oil consumption to boost economic growth. Market sentiment: The market breadth stood in favor of declines. Of the 2965 stocks traded on the BSE, 1234 (41.62%) rose, 1604 (54.10%) fell and 127 (4.28%) stocks remained unchanged. Sectoral & stock screening: Among the 13 sectoral indices, seven sectors closed in the red zone while remaining six sectors closed in the green zone. Top Gainers: BSE Oil&Gas up by 0.62%, BSE CD gained by 0.51%, BSE HC rose by 0.27%. Top Losers: BSE CG down by 1.69%, BSE Realty fell by 0.72%, BSE Power declined by 0.68%. Among 'A' group stocks, top three gainers were- United Breweries surged by 6.51%, JSW Energy rose by 3.10% and Idea Cellular up by 2.83%. Top three losers were- United Spirits fell by 9.15%, BHEL down by 6.19% and Gujarat Fluorochemicals declined by 6.11%. Global signals: Asian shares slipped on Monday as investors switched their focus away from signs of stable U.S. growth, looking instead at tepid global corporate earnings and the uncertain economic outlook. European shares fell for the first time in four sessions on Monday, hit by worries over weak company results. Analysts expected equities to make little progress this week, with volumes expected to be low given the closure of U.S. stock and options markets due to Hurricane Sandy. Market Outlook: Data to be released in the US on Monday is: Personal Income & Outlays and Dallas Fed Mfg Survey.