Benchmarks trade slightly in the red in early deals

Indian equity benchmarks have made a cautious start and are trading slightly in the red on sluggish global cues. The US markets continued their somber run and once again ended in red in last session, as tepid data raised concerns about the pace of the economic recovery. Home prices were weaker than expected in July, while consumer confidence fell from 7-year highs in September. Asian markets were trading lower on account of continued civil unrest in Hong Kong.

Back home, sentiments remained down-beat after data released by the Controller General of Accounts revealed that Fiscal deficit touched 74.9 percent of the Budget Estimates for 2014-15 to cross Rs 3.97 lakh crore at the end of August. It also showed that the total expenditure of the government during April-August was over Rs 6.72 lakh crore or 37.5 percent of the estimates for the entire 2014-15 fiscal. However, losses remained capped on report that the eight core industries grew at 5.8 per cent in August this year compared to 4.7 per cent during the corresponding month of last year.

On the sectoral front, software, technology and consumer durables witnessed the maximum gain in trade, while metal, oil and gas and banking remained the top losers on the BSE sectoral space. The broader indices, however, were outperforming benchmarks, while the market breadth on the BSE was positive; there were 1030 shares on the gaining side against 813 shares on the losing side while 58 shares remain unchanged.

The BSE Sensex opened at 26681.47; around 51 points higher as compared to its previous closing of 26630.51, and has touched a high and a low of 26683.70 and 26587.15 respectively. The BSE Sensex is currently trading at 26609.14, down by 21.37 points or 0.08%. There were 12 stocks advancing against 18 stocks declining on the index.

The overall market breadth remained in the favour of advances with 54.18% stocks advancing against 42.77% declines. The broader indices were trading in green; the BSE Mid cap index was up by 0.22%, while Small cap index up by 0.34%.

The gaining sectoral indices on the BSE were IT up by 1.48%, TECK up by 1.21%, Consumer Durables up by 0.70%, Auto up by 0.31% and Power up by 0.22% while, Metal down by 0.95%, Oil & Gas down by 0.68%, Bankex down by 0.57%, Realty down by 0.51% and FMCG down by 0.47% were the losing indices on BSE.

The top gainers on the Sensex were Wipro up by 3.09%, Hero MotoCorp up by 1.83%, TCS up by 1.49%, Infosys up by 1.05% and Bajaj Auto up by 0.68%. On the flip side, Tata Steel down by 2.24%, Hindalco down by 1.98%, GAIL India down by 1.80%, ITC down by 1.02% and ONGC down by 0.94% were the top losers.

Meanwhile, reiterating its tough stance over food-grain stockpile issue, Prime Minister Narendra Modi has made it clear that agreement on food security and trade facilitation will have to go hand-in-hand. Notably, these comments came a little ahead of PM’s meet with US President Barack Obama.

It was India’s tough stand on this issue, which had led to collapse of the WTO Geneva talks on July 31 as the country stood pat too seek a permanent solution for food-grain stockpile issue, which the government felt was essential for unhindered implementation of the country's food security programme. The country decided not to ratify WTO's Trade Facilitation Agreement (TFA), which is dear to the developed world, without any concrete movement to its public food stock-holding issue for food security purposes.

The problem occurred when the country asked the WTO to modify the norms for calculating agri-subsidies in order to procure food-grains from farmers at minimum support price and sell that to poor at cheaper rates without violating norms that attracted penalty in the WTO. The current WTO norms limit the value of food subsidies at 10% of the total value of food-grain production. However, the support is calculated at the prices that are over two decades old. Nevertheless, reports suggest that the implementation of food security programme would breach 10% cap and may lead to imposition of hefty penalties if a member country drags India to the WTO.

The CNX Nifty opened at 7,960.50; around 4 points lower as compared to its previous closing of 7,964.80, and has touched a high and a low of 7,977.50 and 7,952.20 respectively.

The CNX Nifty is currently trading at 7956.75, down by 8.05 points or 0.10%. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Wipro up by 3.08%, HCL Tech up by 2.19%, Hero MotoCorp up by 1.81%, TCS up by 1.56% and Tech Mahindra up by 1.30%. On the flip side, Jindal Steel & Power down by 3.79%, Tata Steel down by 2.30%, GAIL India down by 2.06%, Hindalco down by 1.95% and Bank Of Baroda down by 1.47% were the top losers.

Asian markets were trading mostly in the red; Nikkei 225 tumbled by 24.16 points or 0.15% to 16,149.36, KOSPI Index slipped 23.27 points or 1.15% to 1,996.82, Straits Times decreased 10.72 points or 0.33% to 3,266.02, Jakarta Composite dropped by 11.98 points or 0.23% to 5,125.60, FTSE Bursa Malaysia KLCI was down by 0.20 points or 0.01% to 1,846.11.

On the flip side, Taiwan Weighted was up by 24.08 points or 0.27% to 8,991.00.

Shanghai and Hong Kong markets remained shut for the trade today for National Day holiday.