Markets continue to trade lackluster, lacking any supportive cues

The start of the new year is not looking very impressive and the markets continue to remain lackluster in the late morning trade, though there is not much selling but traders are not taking serious bets too, and the foreign investors remain on holiday. The markets are having the overhang of the plunge in the US markets last night, while the major Asian markets are not trading today. The domestic indices are missing the buying interest on some major counters, though the broader markets are outperforming and have gathered considerable gains since morning. On the sectoral front metal, capital goods and consumer goods have taken the lead, while oil & gas and banking were witnessing some profit taking. Auto sector despite apprehension of a decline are trading higher, the government has decided to roll back the 4-6% excise duty cuts on automobiles announced last February. Meanwhile, the monthly sales numbers for the auto companies have started trickling in, Maruti Suzuki has reported 20.8% increase in its monthly sales for December, its domestic sales were up by 13.3%.

The BSE Sensex is currently trading at 27457.18, down by 42.24 points or 0.15% after trading in a range of 27395.34 and 27493.37. There were 14 stocks advancing against 15 stocks declining on the index.

The broader indices were outperforming the benchmarks; the BSE Mid cap index was up by 0.55%, while Small cap index surged by 0.91%.

The gaining sectoral indices on the BSE were Metal up by 0.66%, Capital Goods up by 0.49%, Consumer Durables up by 0.46%, PSU up by 0.27%, INFRA up by 0.25% while, Oil & Gas down by 0.26%, Bankex down by 0.18%, FMCG down by 0.11% were the losing indices on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 1.68%, Cipla up by 0.97%, Tata Steel up by 0.85%, Maruti Suzuki up by 0.77% and BHEL up by 0.64%. On the flip side, HDFC down by 0.88%, NTPC down by 0.80%, Coal India down by 0.79%, Dr. Reddys Lab down by 0.73% and Reliance Industries down by 0.69% were the top losers.

Meanwhile, in a big sign of disappointment to the central government, India’s fiscal deficit widened to 99% at Rs 5.25 lakh crore during April-November this fiscal as against Rs 5.31 lakh crore Budget Estimates for 2014-15. In the corresponding year-ago period, fiscal deficit, gap between government expenditure and revenue, was 93.9% of the budget estimate.

During the reported period, government's net tax revenue was Rs 4.13 lakh crore or 42.3% of the Rs 9.77 lakh crore estimated for the whole year. Total receipts including revenue and non-debt capital during the eight months of the year was Rs 5.49 lakh crore or 43.4% of the target. Prevailing slowdown in manufacturing sector is adversely impacting the tax collection, which is the major source of revenue for the government. On the other hand, Plan expenditure of the government during the period was Rs 2.93 lakh crore or 51.1% of target and non-Plan expenditure was Rs 7.8 lakh crore or 64 % of the target. The fiscal deficit was recorded at around Rs 5.08 lakh crore or 4.5% of GDP in FY14 as against 4.9% in FY13.

With an aim to trim the fiscal deficit to 4.1% of gross domestic product (GDP) in FY15, the government has recently issued new austerity measures including 10% cut in non-Plan expenditure. The government barred senior officials from first-class air travel, foreign jaunts, holding meetings in five-star hotels and purchase of new cars. Moreover, it had also put in place a fiscal consolidation roadmap as per which the fiscal deficit has to be brought down to 3 per cent of the GDP by 2016-17.

The CNX Nifty is currently trading at 8271.10, down by 11.60 points or 0.14% after trading in a range of 8248.75 and 8276.70. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Sesa Sterlite up by 1.52%, NMDC up by 1.17%, IDFC up by 1.11%, Tata Steel up by 0.89% and PNB up by 0.87%. On the flip side, HDFC down by 0.99%, Dr. Reddys Lab down by 0.82%, Cairn India down by 0.81%, Coal India down by 0.81% and NTPC down by 0.73% were the top losers.

All the major Asian markets remained closed on account of New Year’s Holiday.