Benchmarks trim losses; trade continues in red

Indian equity markets trimmed losses but continued their weak trade in the late afternoon session on account of selling in frontline blue chip counters taking cues from global counterparts. The sentiments were on pessimistic note on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 298 crore on January 09, 2014. Besides, a weak trend at other Asian markets and weekend losses in US markets also influenced trading sentiments. However, losses remained capped on report that the government plans to allow resolution of disputes in infrastructure development through arbitration in neutral places like Singapore, London and Malaysia, a step aimed at increasing the confidence of foreign investors in putting money in a sector that is key to economic growth but is struggling due to funds shortage. Meanwhile, some traders remained on the sidelines and refrained from any buying activity ahead of major macro data of inflation and industrial production to be announced later in the day that will likely to set the tone for the Reserve Bank of India’s (RBI’s) move on interest rates in its next policy review in February.

On global front, Asian markets were trading mostly in red following a soft finish on Wall Street though sentiment was supported by speculation the Federal Reserve would be patient in tightening policy given the weakness of wages apparent in the jobs numbers. Back home, Indian rupee gained 23 paise at 62.09 against the dollar in early trade on increased selling of US currency by exporters amid weakness in the dollar index overseas.

Back on street, stocks from FMCG, Capital Goods and IT counters were supporting the markets’ uptrend, while those from Metal, Oil & Gas and Auto counters were adding to the underlying cautious undertone. In scrip specific development, shares of Adani Enterprises surged after the company has tied up with Australia's Woodside Energy to source liquefied natural gas (LNG), and for oil & gas exploration and production opportunities. On the other hand, shares of Coal India have dipped on reports that the government planning to sell 10% stake in the country's largest miner.

The market breadth on BSE was positive, out of 2311 stocks traded, 1372 stocks advanced, while 849 stocks declined on the BSE.

The BSE Sensex is currently trading at 27422.58, down by 35.80 points or 0.13% after trading in a range of 27333.08 and 27539.55. There were 11 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.47%, while Small cap index up by 0.77%.The gaining sectoral indices on the BSE were FMCG up by 1.31%, Capital Goods up by 0.61%, IT up by 0.46%, Bankex up by 0.45% and Power up by 0.32% while, Metal down by 1.49%, Oil & Gas down by 1.22%, Auto down by 0.50%, PSU down by 0.42%, Infrastructure down by 0.31% were the losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 3.46%, Axis Bank up by 1.01%, BHEL up by 0.94%, SBI up by 0.89% and Infosys up by 0.78%. On the flip side, Coal India down by 4.10%, Bharti Airtel down by 2.15%, GAIL India down by 1.67%, Reliance Industries down by 1.47% and Hindalco down by 1.42% were the top losers.

Meanwhile, India’s peak power deficit for the month of December declined to 3.3% from 3.7% in November mainly on the back of improved coal supplies, additional generation capacity and connectivity of the southern transmission network with the National Grid. The Central Electricity Authority (CEA) reported that country’s total peak power demand was 1,39,479 MW last month, of which 1,34,940 MW was met, leaving a peak power deficit at 4,539 MW.

Region wise, north-eastern region comprising Assam, Meghalaya, Manipur, Mizoram, Tripura, Arunachal Pradesh and Nagaland were the worst affected, recording a peak deficit of 11.8% in December. Peak power demand in the southern region states of Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Kerala, Puducherry and Lakshadweep last month was 35,668 MW, leaving a peak power deficit at 4.3%. North Indian states of Delhi, Punjab, Haryana, Himachal Pradesh, Uttar Pradesh, Uttarakhand, and Rajasthan recorded a shortage of 5.3%  in December 2014. Electricity demand in the western region comprising Gujarat, Chhattisgarh, Madhya Pradesh, Maharashtra and Goa was nearly met in December 2014 as the region’s peak power deficit came down to 0.4% in December 2014 from last year’s 2.5% in the same month. Further, peak power shortage in eastern region including states West Bengal, Bihar, Jharkhand, Odisha etc remained at 1.7% in the reported month.

In India, electricity is produced through coal, crude oil, water and natural gas. Coal-fired plants account for around 59% of India's total installed electricity capacity. India is still a power deficit country, as acute coal shortage in the country has become primary reason for power deficit in the country. Presently, the Coal India (CIL) is the only producer of domestic coal accounting for around 80% of the domestic production. CIL is currently facing various mining issues which are impacting its coal production.

The CNX Nifty is currently trading at 8288.70, up by 4.20 points or 0.05% after trading in a range of 8245.60 and 8297.65. There were 21 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 3.19%, Bank of Baroda up by 2.78%, PNB up by 2.32%, Tech Mahindra up by 2.19% and Kotak Mahindra Bank up by 1.61%. On the flip side, Coal India down by 4.01%, Cairn India down by 2.55%, Jindal Steel & Power down by 1.77%, Bharti Airtel down by 1.77% and GAIL India down by 1.68% were the top losers.

Asian markets were trading mostly in the red; Shanghai Composite tumbled 2.22%, Jakarta Composite decreased by 0.61%, Taiwan Weighted slipped by 0.30%, FTSE Bursa Malaysia KLCI dipped 0.31%, KOSPI Index shed 0.17% and Straits Times was down by 0.01%. On the flip side, Hang Seng rose 0.04% and Nikkei 225 was up by 0.18%.