Markets flat ahead of FDI vote

Auto stocks outtperform

Markets continue to trade on a flat note ahead of the ahead of key FDI vote in Rajya Sabha later today that will decide the fate of  economic reforms in Asia's third-biggest economy.

The Sensex is up 17 points at 19,505 and the 50-share Nifty is up by a point at 5,932 levels.

Markets gained yesterday with Nifty rebounding to 5,900 levels after Mayawati-led Bahujan Samaj Party (BSP) said it would support foreign direct investment in supermarkets in a vote on Friday in the Rajya Sabha. The other key Samajwadi Party is likely to abstain from voting today paving way for FDI in India.

Meanwhile, the Asian markets are trading higher and touched fresh 16-month highs on Friday following modest overnight gains in global equities as investors watched progress in US budget talks with expectations for an eventual deal and awaited US nonfarm payrolls data later in the day.

Hang Seng advanced 34 points to 22,283, Shanghai Composite was up 19 points at 2,048, nikkei jumped 2 points to 9,547, Straits Times advanced 28 points to 3,106 and Taiwan Weighted was up 19 points at 7,642.

Back home, Maruti Suzuki is the top gainer among the Sensex stocks, up 3.2% at Rs 1,529 its highest level since November 2010 on the BSE, on reports that the company will increase the prices of its vehicles across all models from January due to increasing pressure on its margins due to currency fluctuation.

"There will be a hike in the prices of our products. Quantum will vary depending on models, but it can be up to Rs 20,000," PTI report suggests, quoting Maruti Suzuki India Chief Operating Officer (Marketing & Sales) Mayank Pareek.

Tata Motors, Coal India, BHEL, Mahindra & Mahindra, Larsen & Toubro, Bharti Airtel, State Bank of India, Tata Power, Reliance Industries and ICICI Bank are also trading higher by 0.3-2.5% each.

On the other hand, Sterlite Industries is the top loser from the Sensex pack. The stock has slipped 1% to Rs 114. TCS, Dr Reddy's Labs, Infosys, HDFC, GAIL India, HUL, NTPC, Tata Steel, HDFC Bank, ITC and Hindalco are also among the losers.

On the sectoral front, the BSE auto index is the top gainer led by gains in heavyweights such as Maruti Suzuki and Tata Motors. The index has advanced 1.5% or 160 points to 11,041. Consumer durables, capital goods, PSU, realty, power, oil & gas and bankex indices are also up 0.3-1.3% each. While, IT, FMCG, metal and healthcare indices are among the losers.

Among the individual stocks, Tara Jewels declined nearly 5% for the second day in a row, and was locked in lower circuit at Rs 219 on the BSE, with no buyers on the counter.

The stock of the Mumbai-based jewellery manufacturer and retailer got listed at Rs 242 on Thursday, is currently trading below its issue price of Rs 230 per share. A combined around 8,000 shares have already changed hands on the counter and there are pending sell orders for 177,750 shares on both the exchanges.

Hexaware Technologies is trading lower by 3% at Rs 104, extending its previous day’s 3% fall, after the company revised its revenue guidance downwards for the current quarter and for the year ending December 31, 2012.

The broader markets are outperforming the benchmark indices. The BSE mid-cap and small-cap indices are up 0.8% each.

The overall breadth is positive as 1,474 stocks are advancing while 1020 are declining.