Markets continue to sulk into red with substantial losses

Markets continued to sulk into red with substantial losses of around four tenths of a percent which dragged both Sensex and Nifty below psychologically crucial 28,400 and 8,600 levels respectively in absence of positive trigger at home front amidst somber global cues. Prevailing caution ahead of the release of the government’s market borrowing calendar for April-September also weighed on the sentiment. However, some recovery could be witnessed later in the session as Rajya Sabha approved the contentious key reform-driven mining Bill, which seeks to encourage exploration and production with 50-year lease terms and secure tenures, besides allowing transfer of leases and other rights. However, presently the mood continues to remain somber, with broader indices underperforming larger counterparts with massive losses in the range of 0.80-1.30%.

On the global front, Asian markets, reversing the previous day’s gains in reaction to a dovish US central bank were set for mix close, with Tokyo, Shanghai and Sydney markets finishing the week at new highs.

Closer home, most of the sectoral indices on BSE were reeling under pressure, with stocks form Realty, Power and Fast Moving Consumer Goods counters turning out to be the worst performers of the session. On the flip side, massive gains were witnessed by stocks from Information Technology, Metal and Technology counters. Four telecom stocks rang off in trade as aggressive bidding by telecom companies continued on 14th day of telecom spectrum auction on Friday, 19 March 2015. The overall market breadth on BSE was in the favour of 1905:646; while 98 shares remained unchanged.

The BSE Sensex is currently trading at 28359.88, down by 109.79 points or 0.39% after trading in a range of 28301.17 and 28484.36. 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 0.81%, while Small cap index down by 1.39%.

The gaining sectoral indices on the BSE were IT up by 0.66%, Metal up by 0.63% and TECK up by 0.50% while, Realty down by 2.17%, Power down by 1.69%, FMCG down by 1.42%, Consumer Durables down by 1.17% and PSU down by 1.09% were the losing indices on BSE.

The top gainers on the Sensex were Wipro up by 2.50%, Coal India up by 1.12%, Hindalco up by 1.02%, Infosys up by 0.96% and Sesa Sterlite up by 0.84%. On the flip side, NTPC down by 6.25%, GAIL India down by 2.95%, ICICI Bank down by 2.18%, Mahindra & Mahindra down by 1.53% and BHEL down by 1.53% were the top losers.

Meanwhile, the government received commitments of Rs 109,000 crore from telecom operators at the end of 86th round of bidding on Thursday, which was the 14th day of radio frequency spectrum e-auctions. This is little higher compared to commitments worth Rs 108,000 crore on the 13th day of the auction. With this, over 89% of spectrum has been provisionally allocated to bidders. The auction will continue on Friday as about some amount of spectrum is yet to be sold.

Robust bidding was witnessed in 1800 MHz and 800 MHz band, with majority of service areas being sold at a premium over reserve price. However, DoT has barred from publishing final results without Supreme Court’s consent. A hearing in the apex court in this regard is scheduled for March 26.

Nevertheless, maximum bids of 85 were received for Tamil Nadu circle with a winning amount of Rs 45 crore per block in the 1800MHz band. However, this circle saw 10 less bids. The second highest bids of 75 were received for Punjab circle with a winning amount of Rs. 72.15 crores per block in the 900MHz band. This circle also saw three less bids.

The biggest ever auction of spectrum in the 800, 900, 1,800, and 2,100 MHz bands had started on March 4. In the current round of auction, the government is selling a total of 380.75 MHz of spectrum in the premium, 900 MHz band, 800 MHz and 1,800 MHz bands, and 5 MHz in the 2,100-MHz band across 17 of the 22 telecom areas of the circles in the country. The government had initially estimated to earn between Rs 80,000 crore and Rs 1 lakh crore from the sale of radio waves. However, this seems to be way above estimates, with the counting still continuing. From the last spectrum auction held in February 2014, the government had raked in Rs 62,162 crore.

Notably, these commitments come over and above the Rs 200,000 crore that India Inc has already bid under the two phases of auctions for award of coal blocks. But the proceeds from this auction will go to the respective state governments over 30 years. 

The CNX Nifty is currently trading at 8598.30, down by 36.35 points or 0.42% after trading in a range of 8575.15 and 8627.90. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Wipro up by 2.50%, Coal India up by 1.52%, Hindalco up by 0.94%, Cairn India up by 0.92% and Infosys up by 0.91%. On the flip side, NTPC down by 6.04%, GAIL India down by 2.99%, BPCL down by 2.71%, Asian Paints down by 2.10% and ICICI Bank down by 2.10% were the top losers.

Asian markets were trading mixed; Taiwan Weighted trading higher by 12.96 points or 0.13% to 9,749.69; Straits Times trading higher by 23.91 points or 0.71% to 3,410.07; Shanghai Composite trading higher by 29.68 points or 0.83% to 3,611.95 and Nikkei 225 trading higher by 83.66 points or 0.43% to 19,560.22.

On the flip side, Hang Seng trading lower by 67.72 points or 0.28% to 24,401.17; Jakarta Composite trading lower by 21.34 points or 0.39% to 5,432.52; FTSE Bursa Malaysia KLCI trading lower by 6.78 points or 0.37% to 1,802.35 and KOSPI Index trading lower by 0.65 points or 0.03% to 2,037.24.