Bourses magnify losses post three months high March WPI data

Magnifying losses, benchmarks have further hit fresh lows on the back of disappointing macro-economic data, which underpinned market-participants to square off their remaining position in equities.  On the macro-front, snapping a three-month easing trend which would will give the Reserve Bank of India (RBI) less scope to support the economy amid fresh signs of slowdown, the annual rate of inflation, based on monthly WPI, edged higher to 5.70%, from multi month low at 4.68% (provisional) in month of February, 2014, as compared to 5.65% during the corresponding month of the previous year. Languishing in red, both Sensex and Nifty were trading below the crucial 22,450 and 6750 levels respectively, with losses of over 3 /4 of a percent.  Meanwhile, broader indices too succumbing to selling pressure were trading with loss on the range of 0.05-0.20%.

Besides, dismal macro-economic data, not so positive start of European markets is also weighing on the sentiment. On the global front, European stocks were trading mixed, after yesterday’s advance, as investors weighed violence in eastern Ukraine and the slowest Chinese money supply growth in almost 13 years.

Closer home, while stocks from Information Technology counters were aiding bourses to limit their losses, those from Auto, Metal and Banking counters were endorsing the underlying weakness of markets. All the rate sensitives were dumped off by the investors, who are now awaiting the release of CPI data, later in the day. The overall market breadth on BSE is in the favour of declines which outnumbered advances in the ratio of 1328:1130; while 133 shares remained unchanged

The BSE Sensex is currently trading at 22440.66, down by 188.30 points or 0.83% after trading in a range of 22737.31 and 22418.56. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices too completely succumbed to selling pressure; the BSE Mid cap index was down by 0.19%, while Small cap index down by 0.06%.

The gaining sectoral indices on the BSE were IT up by 1.49% and Teck up by 1.16%. While, Auto down by 1.86%, Metal down by 1.65%, Bankex down by 1.42%, Realty down by 1.29%, and Consumer Durbales down by 1.07% were the losing indices on BSE.   

The top gainers on the Sensex were Wipro up by 2.12%, TCS up by 2.02%, Infosys up by 1.61%, Bharti Airtel up by 1.30% and Dr Reddy’s Lab up by 0.65%. On the flip side, HDFC down by 3.54%, Tata Motors down by 2.67%, Hindalco Inds down by 2.63%, M&M down by 2.52% and SSLT down by 1.86%.

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 6,722.15, down by 54.15 points or 0.80% after trading in a range of 6,813.40 and 6,711.75. There were 11 stocks advancing against 39 declining stocks on the index.

The top gainers of the Nifty were Mcdowell up by 11.38%, Wipro up by 2.09%, TCS up by 2.04%, Infosys up by 1.65% and Bharti Airtel up by 1.16%. On the flip side, Jindal Steel down by 3.84%, HDFC down by 3.59%, DLF down by 2.92% , Tata Motors down by 2.88% and Hindalco down by 2.77% were the major losers on the index.

Asian equity indices were trading mixed; Nikkei 225 up by 0.29%, Taiwan Weighted up by 0.67%, Straits Times was up by 0.92% and Jakarta Composite up by 0.27. While, Shanghai Composite down by 1.40% and Hang Seng down by 1.39% were the losers.

European markets too got off to a negative start; with CAC 40 down by 0.17%, DAX 100 sliding by 0.10% and FTSE 100 up by 0.10%