Benchmarks cut gets deeper; Auto sector major dragger

Indian equity benchmarks after a positive start this morning lost all early gains and currently trading near low point of the day amid choppy trade. Investors were trading cautiously and pressing sales at several front line counters. Though there were no big global cues, the government's decision to allow qualified foreign investors to directly invest in Indian stocks was unable to hold the market gains. Meanwhile, the rupee is trading weak against the dollar. The Indian currency declined in early trades this morning amid concerns about the government's widening fiscal deficit. On sectoral front Automobile stocks were trading weak following a drop in vehicles sales in the month of December 2011. Realty, power, FMCG and metal stocks were among the other prominent losers. On the global front markets in the Asia-Pacific region were trading mixed. Back home, the market breadth remained positive; there were 1,165 shares on the gaining side against 1,052 shares on the losing side while 107 shares remained unchanged.

The BSE Sensex is currently trading at 15,407.66, down by 47.26 points or 0.31%. The index has a touched a high and low of 15,541.95 and 15,401.32 respectively.  There were only 13 stocks advancing against 17 declines on the index.

The broader indices too were trading mixed; the BSE Mid cap index down by 0.26% and Small cap index up by 0.22%.

The top gainers on the index were Oil & Gas up 0.61%, Consumer Durables up 0.57%, IT up 0.46%, TECk up 0.43% and Health Care up 0.02% while Auto down 2.06%, Realty down 1.36%, FMCG down 0.90%, Power down 0.86% and Metal down 0.85% were the top loser on the index.

The top gainers on the Sensex were Coal India up by 2.38%, TCS up by 1.36%, ONGC up 1.15%, Cipla up by 0.92% and Maruti Suzuki up by 0.84%.

On the flip side, Bajaj Auto down by 8.18%, Hero MotoCorp down 5.16%, Hindalco down 3.46%, DLF down 3.17% and Jindal Steel down 2.01% were the top loser on the Sensex.

Meanwhile, despite the fact that uncertainty continues to loom over global economic outlook, yet India registered a 36 percent increase in foreign direct investment (FDI) inflow to $ 23.68 billion during the January-October period of 2011 as compared to FDI worth $ 17.36 billion during the same period in 2010. However, the FDI inflows in the financial year 2010-11 were at $ 19.42 billion, down from $ 25.83 billion in 2009-10.

As per the data released by ministry of commerce and industry, Financial and non- financial, telecom, housing and real estate, and construction and power remained the most lucrative sectors that attracted maximum investments.  The nations from where major part of investments were routed into India were Mauritius, Singapore, the US, the UK, the Netherlands, Japan, Germany and the UAE.

In its bid to raise external debt, the government has gone on to further liberalize the FDI regime and allowed overseas investment in bee-keeping and share-pledging. Moreover, the government has also eased certain conditions for FDI in construction of old-age homes and educational institutions which will not be subject to the minimum and built-up area, capitalisation and lock-in period norms as applicable for the construction activities. But still more need to be done by the government to further streamline policies and make the environment more conducive to FDI.

The S&P CNX Nifty is currently trading at 4,604.50, lower by 19.80 points or 0.43%. The index has touched a high and low of 4,645.95 and 4,603.15 respectively. There were 17 stocks advancing against 33 declines on the index.

The top gainers of the Nifty were Coal India up by 2.58%, TCS up by 1.47%, ONGC up by 1.25%, Maruti up by 1.03% and Ranbaxy up by 1.00%.

On the flip side, Bajaj Auto down by 7.63%, Sesa Goa down by 5.32%, Hero MotoCorp down 4.68%, Hindalco down 3.45% and DLF down by 3.28% remained the top losers on the index.

Most of the Asian equity indices were trading largely on pessimistic note; Jakarta Composite was down 0.31%, and Taiwan Weighted was down by 1.69%. On the flip side, Seoul Composite was up 0.03%, Shanghai Composite was up by 1.22% remained the top gainers.

However, Stock markets in China, Hong Kong, Japan and Singapore remained shut for extended New Year holidays.