Benchmarks trade near intra-day low level in afternoon session

Indian equity benchmarks continue to trade near intra-day low level on account of selling witnessed in rate sensitive stocks such as auto, metal, banking and realty amid negative global cues. Profit booking in frontline blue chip stocks after a recent rally also dragged the markets lower. Sentiments took a hit after Indian industrial production slipped to its 9-month low at -1.9% in February as compared to marginal expansion of 0.1% in January. Further, investors opted to remain on sidelines ahead of the release of headline inflation and retail inflation later in the day. Most of major sectoral indices were trading in red, however traders were seen piling up position in IT and teck stocks. Infosys, India’s second largest IT major, surprised the Street with a 4.1% q-o-q rise in its net profit for the fourth quarter ended March 2014 at Rs 2,992 crore. IT stocks such as Infosys, Wipro and TCS were trading up by over 1%.

United Spirits has rallied 15% to around Rs 2,941, while UB Holdings has surged nearly 20% to around Rs 33.35 after Diageo Plc has made an offer to acquire an additional stake in United Spirits at price of Rs 3,030. Gruh Finance has rallied 7% to around Rs 334 after the board of housing finance company recommended the issue of bonus shares in the ratio of 1 equity share for every 1 equity share held.

On global front, Asian equity indices were trading mixed with Shanghai Composite down by 1.07% and Hang Seng down by 1.14%. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 6,750 and 22,500 levels respectively. The market breadth on BSE was positive, out of 2,360 stocks traded, 1,110 stocks advanced, while 1,128 stocks declined on the BSE.

The BSE Sensex is currently trading at 22,452.10 down by 176.86 points or 0.78% after trading in a range of 22,737.31 and 22,491.51. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.01%, while Small cap index up by 0.05%.

The gaining sectoral indices on the BSE were IT up by 1.15% and Teck up by 0.91%. While, Auto down by 1.69%, Metal down by 1.54%, Bankex down by 1.00%, Realty down by 0.87%, and Oil and Gas down by 0.71% were the losing indices on BSE.   

The top gainers on the Sensex were Wipro up by 1.73%, Infosys up by 1.52%, TCS up by 1.16%, Bharti Airtel up by 1.15% and Dr Reddy’s Lab up by 0.89%. On the flip side, HDFC down by 3.23%, Tata Motors down by 2.78%, Hindalco Inds down by 2.14%, M&M down by 2.02% and Hero Motocorp down by 1.65%.

Meanwhile, The Election Commission has asked the government to defer its Rs 2,600 crore scheme to provide a moratorium on interest payments on the education loans of 9 lakh students until the elections are completed.

The EC has noted that interest-waiver scheme can be implemented by the Finance Ministry after the election process and asked it not to execute any publicity of the scheme during the election period. Voting for General election is scheduled to take place during the period April 7 to May 12 and counting will be taken up on May 16.

In February 17 interim Budget, Finance Minister P Chidambaram announced the waiver of interest on education loans taken before March 2009 that were outstanding at the end of December 2013. As per the finance ministry, Rs 2,600 crore was transferred to the designated banker Canara Bank under Central Scheme for Interest Subsidy (CSIS), which was announced by the government during 2009-10 Budget. CSIS was introduced in respect of education loans disbursed after April 1, 2009, under which the government took over the burden of interest for the duration of the period of study and a little beyond. Till December 2013, public sector banks had 25,70,254 student loan accounts and the amount outstanding was Rs 57,700 crore.

The CNX Nifty is currently trading at 6,726.45 down by 49.85 points or 0.74% after trading in a range of 6,813.40 and 6,711.75. There were only 10 stocks advancing against 40 declining on the index.

The top gainers of the Nifty were Mcdowell up by 11.63%, Wipro up by 1.64%, Infosys up by 1.54%, TCS up by 1.14% and Bharti Airtel up by 1.13%. On the flip side, HDFC down by 3.33%, Tata Motors down by 2.97%, Jindal Steel down by 2.89%, DLF down by 2.52% and Hindalco down by 2.38% were the major losers on the index.

Asian equity indices were trading mixed; Nikkei 225 up by 0.53% to 13,983.89, Taiwan Weighted up by 0.67% to 8,916.71, Straits Times was up by 0.93% to 3,244.66 and Jakarta Composite up by 0.14% to 4,871.62. While, Shanghai Composite down by 1.07% to 2,108.70 and Hang Seng down by 1.14% to 22,776.03.