Barometer gauges magnify losses; trade with cut of over 0.25%

Local barometer gauges, losing further ground were trading with loss of over quarter of a percent in after noon deals, tracing weak start of European markets which were further adding to the somber mood of Indian equity markets.  At day’s low, both Sensex and Nifty were languishing below the crucial 25,200 and 7,550 levels respectively. Meanwhile, broader indices, acting contrary to the trend, were trading with gains in the range of 0.15%-0.75%. While, losses in stocks from Realty, Metal and Auto counters were endorsing the underlying weakness of the markets, those from Technology, Information Technology (IT) and Oil & Gas counters were keeping losses in check.

Stocks from IT and Technology counter were flavor for yet another session on account of Rupee’s depreciation to two months low level in early deals as oil companies rushed to buy the greenback as escalating crisis in Iraq triggered concerns over inflation and current account deficit. Meanwhile, Oil & Gas counters also were witnessing strong demand. Additionally, shares of oil marketing companies, namely BPCL, HPCL and IOC were advancing for second consecutive session after reports suggested of losses in diesel slipping to record low level of Rs 1.62 per litre.

Meanwhile, on the global front, receiving negative hand-over from Asian counterparts, European shares got off to a tepid start amid concerns over the escalating conflict in Iraq, which continued to boost oil prices.

Closer home, the BSE Sensex is currently trading at 25112.9, down by 77.58 points or 0.31% after trading in a range of 25110.2 and 25251.8.  There were 11 stocks advancing against 19 stocks declining on the index. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1574:1121; while 124 shares remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.18%, while Small cap index up by 0.72%.   

The gaining sectoral indices on the BSE were TECK up by 0.67%, IT up by 0.61%, Oil & Gas up by 0.45%, India Infrastructure Index up by 0.18% and PSU up by 0.05%. While, Realty down by 1.55%, Metal down by 0.87%, Auto down by 0.7%, Bankex down by 0.52% and Power down by 0.42 were the losing indices on BSE.   

The top gainers on the Sensex were Bharti Airtel up by 1.59%, Gail India up by 1.33%, ONGC up by 1.29%, Maruti Suzuki up by 1.14% and Axis Bank up by 0.57%. On the flip side, Mahindra & Mahindra down by 2.31%, Hindalco Inds down by 2.2%, HDFC down by 1.8%, Tata Steel down by 1.52% and Tata Power down by 1.47% were the top losers.   

Meanwhile, raising the prospect of deregulation of the nation's most consumed fuel, losses on sale of diesel have dipped to a record low as the difference between the cost of diesel production and the retail selling price has narrowed to Rs 1.62 a litre from Rs 2.80 in the first fortnight of June. However, with the similar scenario, where rupee continues its strengthens and monthly price hike of up to 50 paisa a litre are allowed, diesel will be  de-controlled by September.

The Narendra Modi-government carrying forward the UPA government's decision of eliminating subsidy through small doses of monthly price increases, softening of international oil rates in the first fortnight of June as compared to second half of May also has aided.The UPA government had in January, 2013 decided to raise diesel prices in small doses of 40-50 paisa a litre every month till the losses, which are made good through government subsidy, are completely wiped-out.

The losses on the sale of the fuel have been on southwards journey ever since March as the prospect of a stable and decisive government under Modi helped rupee gain against dollar. Losses on diesel stood at Rs 8.37 per litre in March and slid to Rs 4.41/ litre when the new government came to power.  Marking the second increase in rates in three week, diesel was last hiked by 50 paise on June 1 by the government. The monthly hike in price came after several rounds of discussions that the new Oil Minister Dharmendra Pradhan held with state-owned oil firms on continuing with the reform initiated by the UPA government.

The CNX Nifty is currently trading at 7515.3, down by 18.25 points or 0.24% after trading in a range of 7511.35 and 7553.5. There were 23 stocks advancing against 27 stocks declining on the index.   

The top gainers on Nifty were HCL Technologies up by 3.13%, Bharti Airtel up by 1.67%, Asian Paint up by 1.67%, Ultra Cement company up by 1.59% and ONGC up by 1.34%. On the flip side, DLF down by 2.95%, Hindalco Industries down by 2.39%, Jindal Steel down by 2.27%, M&M down by 2.2% and Tata Power down by 1.99% were the top losers.    

Asian equity indices were trading in red; Hang Seng down by 0.50%, Straits Times down by 0.61%, and Shanghai Composite plunged 0.92%. While, Jakarta Stock Index up by 0.01%, Nikkei 225 added 0.25% and Taiwan Weighted gained 0.41%.

European markets got off to a negative start; with Germany’s DAX sliding by 0.29%, CAC 40 tumbling by 0.73% and United Kingdom’s FTSE100 index losing 0.34%.