Sensex ends flat on 1st day of 2015; RIL, ITC slump

Benchmark share indices ended the first trading day of 2015 on a flat note as investors shifted focus from large caps to fundamentally sound stocks in the broader market.

The 30-share Sensex ended up 8 points at 27,508 and the 50-share Nifty closed 1 point higher at 8,284.

The broader markets outperformed the benchmark indices. T

he BSE Mid-cap index gained 0.6% and the Small-cap index ended up 1.2%.

The rupee was trading lower at Rs 63.28 to the US dollar compared to the previous close of Rs 63.03. In the first eight months of this financial year (April-December), the central government’s fiscal deficit totalled 98.9 per cent of the Budget Estimate (BE) for fiscal 2014-15, despite an easing subsidy burden due to a plunge in crude oil prices.

Official data, issued on Wednesday, showed the deficit stood at Rs 5.25 lakh-crore against the full-year’s Budget Estimate of Rs 5.3 lakh-crore.

For the corresponding period last year, the deficit was 93.9 per cent of the full-year BE.

Meanwhile, country core sector growth touched a five month high at 6.7% in the month of November, 2014 compared to 6.3% growth in October, 2014.

The Steel sector, one of the eight components considered to be core sectors, slowed further to 1.3%.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 481.08 crore yesterday, as per provisional data.

Foreign institutional investors were net buyers in Indian equities to the tune of $16.07 billion in calendar year 2014 till December 30, 2014.

Globally, the Sensex was the second best performing index among major nations after China's benchmark share index Shanghai Composite rising nearly 53% in 2014.

BSE Metal index was the top sectoral gainer up 1% followed by Capital Goods and Auto indices among others.

Defensives such as Healthcare and FMCG indices were the losers.

Losses in index heavyweights Reliance Industries and ITC along with mortage lender HDFC contributed the most to the Sensex decline.

Telecom shares were up after the Telecom Regulatory Authority of India (Trai) on Wednesday recommended a base price of Rs 2,720 crore a megahertz (MHz) for 2,100-MHz spectrum across the country (22 telecom zones). The price is about 22 per cent lower than the reserve price of the same spectrum in the previous auction, conducted in 2010.

Bharti Airtel, Idea Cellular and Reliance Communications were up 3-4% each. Metal shares gained after growth in China's services sector picked up slightly in December.

China is the world's largest consumer of steel, copper and aluminum. Sesa Sterlite gained over 2% while Hindalco and Tata Steel ended up 0.6-1.3% each. L&T ended up 0.4%.

L&T Infrastructure Development Projects Ltd ( L&T IDPL) has begun construction of a Rs 1293 crore road widening project in Odisha, more than a year after bagging the contract for it.

BHEL gained 1.2%. Global crude prices fell to a five-and-half year low. RIL and GAIL lost 0.4-0.5% each while ONGC ended up 0.8% Maruti Suzuki ended up 0.4%.

Country's largest car-maker Maruti Suzuki India (MSI) today reported a 20.8% increase in total sales in December at 1,09,791 units. Hero MotoCorp, Bajaj Auto ended 0.1-1% higher.

Among other shares, Jet Airways and SpiceJet, ended 5-9% higher after Airline Turbine Fuel (ATF) prices were cut by 12.5% in Delhi.

Associate banks of SBI such as State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner & Jaipur ended up 1.5-5% each ahead of the meeting with PM, FM for merger.

Market breadth was strong with 1,684 gainers and 973 losers on the BSE.