BSE Sensex, Nifty struggle to head higher: Tuesday Closing Report

The Nifty awaits fresh signal to decide its further direction

The market closed with minor gains even as the Lok Sabha continued its debate on allowing FDI in multi-brand retail in the country. Today the Nifty kept up its past five day trend of making a higher low. However, the index couldn’t make a higher high although it closed near the day’s high and ended in the positive. With the weak upmove we saw the benchmark close almost flat. The National Stock Exchange (NSE) saw a volume of 84.94 crore shares and an advance-decline ratio of 1006:801.
The domestic market witnessed a subdued opening on the back of weak global cues. US indices closed lower overnight on disappointing factory output data and wrangling among policymakers on the issue of hike in taxes and spending cuts. Reflecting the US trend, the Asian pack was mostly in the red in morning trade on concerns in the world’s biggest economy.
Back home, the Nifty opened four points lower at 5,867 and the Sensex resumed trade at 19,278, down 27 points from its previous close. The market witnessed a high degree of volatility since the opening bell on nervousness about the fate of the government’s reforms as the Lok Sabha (Lower House) is expected to begin its two-discussion on the FDI issue.
Buying in select stock helped the benchmarks overcome initial jitters and move into the green in subsequent trade. The market stayed in the green in the remainder of the morning session. 
Profit booking once more pushed the indices into the negative a short while later. The benchmarks slipped to their lows in noon trade in the absence of any local triggers. At the lows the Nifty fell to 5,859 and the Sensex retracted to 19,264.
Meanwhile, Moody’s Investors Service on Tuesday said its outlook on the Indian banking system for the next 12-18 months remains negative, on account of the continued challenging nature of its domestic operating environment. The global credit rating agency has had a negative outlook on the Indian banking system since November 2011.
The debate in the Lok Sabha on allowing FDI in multi-brand retail, which began this afternoon, lifted the benchmarks once more in late trade. Buying in heavyweights also supported the gains. The market hit its high in the last half hour with the Nifty going up to 5,895 and the Sensex climbing to 19,374.
The market closed off highs on a minor bout of selling towards the end of the trading session. The Nifty rose 18 points (0.31%) to 5,889 and the Sensex settled 43 points (0.22%) up at 19,348.
Among the broader indices, the BSE Mid-cap rose 0.10% and the BSE Small-cap index gained 0.595. 
The top sectoral gainers were BSE Oil & Gas (up 1.57%); BSE Realty (up 0.84%); BSE Power (up 0.83%); BSE Bankex (up 0.75%) and BSE Healthcare (up 0.32%). The key losers were BSE Consumer Durables (down 0.72%); BSE IT (down 0.68%); BSE Auto (down 0.43%); BSE Metal (down 0.35%) and BSE TECk (down 0.27%).
Eleven of the 30 stocks on the Sensex closed in the positive. The main gainers were Tata Power (up 4%); Reliance Industries (up 2.49%); State Bank of India (up 1.59%); Bajaj Auto (up 1.55%) and ICICI Bank (up 1.53%). The chief losers were Mahindra & Mahindra (down 1.75%); Wipro (down 1.65%); NTPC (down 1.34%): Sterlite Industries (down 1.29%) and TCS (down 1.25%).
The top two A Group gainers on the BSE were—United Breweries (up 19.20%) and Jaiprakash Power Ventures (up 9.77%).
The top two A Group losers on the BSE were—Jet Airways (down 5.17%) and CRISIL (down 5.09%).
The top two B Group gainers on the BSE were—Eastern Silk Industries (up 20%) and Elder Pharmaceuticals (up 19.99%).
The top two B Group losers on the BSE were—Mahavir Impex (down 18.49%) and Shekhawati Poly Yarn (down 17.36%).
Out of the 50 stocks listed on the Nifty, 22 stocks settled in the positive. The major gainers were Jaiprakash Associates (up 4.52%); Tata Power (up 3.95%); RIL (up 2.59%); Ranbaxy Laboratories (up 2.26%) and Reliance Infrastructure (up 1.84%). The major losers were Wipro (down 2.17%); M&M, Ambuja Cement (down 2.05% each); TCS (down 1.82%) and Grasim Industries (down 1.34%).
Markets in Asia closed mixed as US lawmakers worked out new budget proposals to avoid new taxes and spending cuts. An unexpected drop in US manufacturing output in November also hurt investor sentiment in the export-oriented continent.
The Shanghai Composite climbed 0.78%; the Hang Seng gained 0.31%; the KLSE Composite rose 0.02% and the Taiwan Weighted added 0.015. On the other hand, the Jakarta Composite dropped 0.76%; the Nikkei 225 declined 0.27%; the Straits Times fell 0.12% and the Seoul Composite settled 0.255.
At the time of writing, the key markets in Europe were trading with gains in the range of 0.19% to 0.81% and the US stock futures were marginally higher.
Back home, foreign institutional investors were net buyers of shares aggregating Rs302.68 crore on Monday while domestic institutional investors were net sellers of equities totalling Rs335.94 crore.
Apollo Tyres is planning to set up a 2 x 7.5 megawatt coal-based thermal power plant at its Oragadam facility near Chennai in Tamil Nadu. The plant will help the company become self-sufficient for its power requirements for critical equipments, said the company in a statement. The stock gained 0.545 to settle at Rs84.50 on the NSE.
Mumbai based public sector lender, Dena Bank, has waived processing fees for housing loans and car loans. The bank is also offering 50% discount on the processing fees of personal and gold loans. The move follows a directive from the finance ministry asking banks to focus on retail advances. The stock fell 0.35% to close at Rs112.90 on the NSE.
Coal India is targeting 46 million tonnes of production in December, up from 39 million tonnes in November to meet its annual production target of 464.10 million tonnes by March, 2013. This would be just close to 7% higher than last year's December month production, when around 43 million tonne of coal was produced. The stock fell 0.48% to settle at Rs364.40 on the NSE.



IDBI Mutual Fund launches Gilt fund

IDBI Gilt Fund is a debt scheme with a mandate to invest in government securities and other such debt instruments

Mumbai: IDBI Asset Management Co, the mutual fund subsidiary of IDBI Bank, on Tuesday launched an open-ended gilt scheme named 'IDBI Gilt Fund' which will invest government securities and treasury bills, among others, reports PTI.
"The gilt fund is a debt scheme with a mandate to invest in government securities and other such debt instruments," its managing director and chief executive Debasish Mallick told reporters.
He also said as there is a likelihood of easing in monetary policy going ahead, the gilt fund will be able to give 'sound' returns.
The new fund offer will open for subscription on 5th December and close on 17th December. The scheme will reopen for subscription from 27th December onwards.
Investors can invest in this scheme through systematic investment plan (SIP) route with investment of Rs500 per month and the minimum investment lumpsum will be Rs5,000.
On the amount the fund house is likely to mop up, Mallick said he is hopeful of garnering around Rs100 crore during the initial subscription period.
He also said the fund house would consider launching a diversified fund in the equity space going ahead.


ArcelorMittal gets nod for multibillion Arctic iron ore venture in Canada

Canada gave its final clearance to the project under which ArcelorMittal-led consortium will begin construction of the new iron-mine close to Arctic


Toronto: Facing hurdles in France, Luxembourg-based ArcelorMittal on Tuesday got green light from Canada for its multi-billion dollar project to develop one of the world's largest iron-ore mines in the Baffin Island in the Arctic, reports PTI.


The local Nunavut Impact Review Board gave its final clearance to the project under which ArcelorMittal-led consortium will begin construction of the new iron-mine close to Arctic, CBC reported.


ArcelorMittal acquired the Mary River deposit in the Canadian Arctic last year in a $567.61 million deal as part of its new thrust to reach its long-term goal of nearly doubling its iron ore production, reducing dependence on miners such as Vale SA, Rio Tinto and BHP Billiton.


ArcelorMittal will hold 70% stake in the Arctic venture with the rest to be shared by Australia's Iron Ore Holdings LP.


The 17,000-hectare mine and associated infrastructure, including a port and railway, is expected to cost between 4-5 billion Canadian dollars, with first production about five years after construction starts.


CBC said the Canadian board's decision was the culmination of a four-year assessment of the project, in which Baffinland Iron Mines Corporation plans to build a massive open-pit mine at its Mary River site about 160 kilometres south of Pond Inlet, Nunavut, along with a railway and port that would allow icebreakers to ship the ore through Arctic waters year-round.


The television network quoted a local board official as saying that the current production plan was for 18 million tonnes which would be ramped up "fairly quickly within the first year or two of start of production".


The Arctic is considered to be the last frontier of mining and until just a few years back, the huge resources had been left untapped due to the region's inaccessibility and the massive costs of extraction. But now, due to the exponential rise in commodity prices, the mining companies feel that the risk would be well compensated.


This will be the first iron-ore mine inside the Arctic circle where temperatures plunge to as low as -50 degree Celsius and to overcome this, ArcelorMittal is earmarking a staggering $2 billion for building a 140-kilometre railroad connecting the mines to a port.


The port near the mines can be reached only by ice-breaking cargo ships, with three times the normal engine power and custom-built to navigate frozen waters.


To provide stability, the railroad track would be set on a four-metre deep foundation. Canadian official said that the construction of the port and the railroad would be completed between 18 months to two years.


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