Markets bounce off from deep negative territory

In an extremely volatile session of trade, local equity markets bouncing off from negative territory were trading slightly in the green, still Sensex and Nifty were below psychologically crucial 28,900 and 8,750 levels respectively. However, broader indices completely capitulating to selling pressure were trading with losses in the range of 0.60%-1.20%. Lack of positive trigger is mainly keeping the trend subdued for Dalal Street amidst mixed Asian cues. Further, selling by foreign funds in the past few sessions also weighed on market sentiment. Foreign portfolio investors sold shares worth a net Rs 27.43 crore in previous trading session, as per provisional data.

On the global front, Asian shares edged higher on Friday and oil prices continued to rebound, but investors’ remained wary ahead of the US nonfarm payrolls report for January later in the session. Street expects US employers to have taken on 234,000 workers in January, below December's increase of 252,000. The jobless rate was expected to remain at a 6-1/2-year low of 5.6 percent, while average hourly earnings is expected to show a rise of 0.3 percent, following the previous month's fall of 0.2 percent.

Closer home, most of the sectoral indices were reeling under pressure, however stocks from Information Technology, Technology and Fast Moving Consumer Goods counters were the top gaining sectoral indices that were keeping the frontline indices’ above water. On the flip side, massive drubbing was witnessed in stocks from Auto, Capital Goods and Oil & Gas counters were the prominent losers of the session. The overall market breadth on BSE was in the favour of declines, which thumped advances in the ratio of 1777:832; while 102 shares remained unchanged.

The BSE Sensex is currently trading at 28872.78, up by 21.81 points or 0.08% after trading in a range of 28922.85 and 28721.24. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.58%, while Small cap index down by 1.12%.

The gaining sectoral indices on the BSE were IT up by 0.89%, TECK up by 0.80%, FMCG up by 0.80%, Realty up by 0.48%, Consumer Durables up by 0.29% while, Auto down by 2.40%, Capital Goods down by 0.67%, Oil & Gas down by 0.53%, Power down by 0.50%, Metal down by 0.44% were the losing indices on BSE.

The top gainers on the Sensex were HDFC up by 2.83%, Cipla up by 1.94%, Infosys up by 1.34%, Bharti Airtel up by 1.16% and Sesa Sterlite up by 1.13%. On the flip side, Tata Motors down by 5.14%, GAIL India down by 2.84%, BHEL down by 2.31%, Sun Pharma Inds. down by 2.00% and Hero MotoCorp down by 1.98% were the top losers.

Meanwhile, in a move to throw a life-line to the struggling Goan iron ore sector, the Centre may soon come out with a special package for miners in the state by slashing duty on exports of the steel-making raw material, which presently stands at 30%

Mining plays a vital role both for Goa's economy and its people. However, mining activity in Goa has been shut for over two years now, although the Supreme Court lifted the ban in April last year. However, it is back on January 15, the Goa government revoked its order of September, 2012 regarding suspension of mining operations.

In a double whammy for the state, ban on mining coupled with an exorbitant 30% duty on iron ore exports made it difficult for miners in the state, which was once the largest exporting one. These problems got compounded with the slump of the iron ore price globally to its five-and-a-half year low last week.

In wake of all these problems faced by the state, Steel and Mines Minister Narendra Singh Tomar has also written to the Finance Ministry seeking an upward duty revision on steel imports that now ranges from 5-7.5%. It has sought introduction of a different duty structure for exports of low-grade iron ore from the state.

Notably, the government is contemplating on this move after steel imports into the country in the first nine months of the current fiscal zoomed around 60% forcing Indian domestic steel-makers to hold on prices even as their margins are getting further squeezed.

The CNX Nifty is currently trading 8,712.20 , up  by 0.50 points or 0.01% after trading in a range of 8,661.65 and 8,726.20. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Cairn India up by 3.36%, HDFC up by 3.06%, Cipla up by 2.04%, PNB up by 1.84% and IDFC up by 1.71%. On the flip side, Tata Motors down by 4.98%, GAIL India down by 2.81%, BPCL down by 2.13%, Sun Pharma Inds. down by 2.12% and Jindal Steel & Power down by 2.12% were the top losers.

Asian markets were trading mixed; KOSPI Index trading higher by 2.68 points or 0.14% to 1,955.52; FTSE Bursa Malaysia KLCI trading higher by 7.53 points or 0.42% to 1,810.74;  Straits Times trading higher by 26.77 points or 0.79% to 3,433.35;  Jakarta Composite trading higher by 30.41 points or 0.58% to 5,310.30;  Nikkei 225 trading higher by 143.88 points or 0.82% to 17,648.50.

On the flip side, Hang Seng was trading lower by 100.31 points or 0.41% to 24,665.18; Shanghai Composite was trading lower by 75.39 points or 2.4% to 3,061.14 and Taiwan Weighted was down by 55.87 points or 0.59% to 9,456.18.