Markets recover lost ground after sharp setback

Indian equity markets recovered the lost ground and currently trading marginally lower after Prime Minister's Economic Advisory Council’s (PMEAC) revision in India’s GDP growth at 7.1% in FY’12, marginally higher than the 6.9% projected by Central Statistical Organization’s (CSO) advance estimates. On sectoral front, investors indulging were busy in some hectic profit taking in bank, realty and metal stocks. Few stocks from capital goods and PSU sections too declined sharply on selling pressure. Information technology, health care and oil stocks were finding good support. On the global front, Asian markets slipped on Wednesday as relief over Greece's latest bailout turned to doubts whether the debt-stricken country can keep to its austerity programme and on concern about rising oil prices. Back home, the market breadth favoring the negative trend; there were 1,029 shares on the gaining side against 1,562 shares on the losing side while 115 shares remained unchanged.

The BSE Sensex is currently trading at 18,386.03, down by 42.58 points or 0.23%. The index has touched a high and a low of 18,523.78 and 18,339.15 respectively. There were 12 stocks advancing against 17 declining ones and one remained unchanged on the index.

The broader indices too succumbed to the selling pressure; the BSE Mid cap and Small cap indices were down by 0.91% and 0.74% respectively.

The top gaining sectoral indices on the BSE were IT up by 1.03%, Oil and Gas up by 0.98%, TECk up by 0.51% and Health Care up by 0.25%. On the flip side, Bankex down by 1.89%, Realty down by 1.89%, CD down by 1.41%, Metal down by 1.12% and Capital Goods down by 0.72% remained the top losers on the index.

The top gainers on the Sensex were Hero MotoCorp up by 1.86%, TCS up by 1.72%, Sun Pharma up by 1.62%, RIL up by 1.30% and ONGC up by 1.17%.

On the flip side, SBI down by 4.23%, DLF down by 3.48%, Sterlite Industries down by 3.19%, Jindal Steel down by 2.41% and ICICI Bank down by 1.87% were the top losers on the Sensex.

Meanwhile, with the growing resistance for the newly constituted National Counter Terrorism Centre (NCTC) among states, government has decided to hold discussion. The fire was ignited by Odisha’s Chief Minister Naveen Patnaik which has now spread to as many as 13 states who are opposing NCTC. These CMs are claiming that NCTC is usurping the powers of states and disturbing the federal structure.

Union Telecom and HRD Minister Kapil Sibal has however clarified that 'If they (states’ CMs) have any concerns, there is no problem in having a dialogue...If there is any misgivings, no problem, we can have a dialogue but all that is being done by the central government for counter terrorism operations.' Justifying NCTC Sibal stated that now NCTC will be deployed with the powers which were earlier with the central government.

Earlier, West Bengal’s CM Mamata Banerjee had written letter to Prime Minister stating “It is difficult for the state government to accept such arbitrary exercise of power by the central government/central agency, which have a bearing on the rights and privilege of the states as enshrined in the Constitution of India. The order, therefore, appears to be an infringement on the powers of state governments in matters of investigation and maintenance of order.” 

After setting up National Investigation Agency, Home Minister P Chidambaram has decided to set up NCTC to avert 26/11 type attacks. NCTC is slated to come into force effective March 01, 2012 and will be regulated by the director of the rank of Additional Director General with three units - gathering intelligence, analysis of intelligence and carrying out operations - and each of these division would be headed by a joint director of Intelligence Bureau.

The S&P CNX Nifty is currently trading at 5,591.00, down by 16.15 points or 0.29%. The index has touched a high and a low of 5,629.95 and 5,573.35 respectively. There were 20 stocks advancing against 30 declining ones on the index.

The top gainers of the Nifty were Sesa Goa up by 3.14%, Hero MotoCorp up by 1.87%, BPCL up by 1.78%, Sun Pharmaceuticals up by 1.71% and TCS up by 1.67%.

On the flip side, SBI down by 4.10%, DLF down by 3.29%, Sterlite Industries down by 3%, Jindal Steel down by 2.58% and PNB down by 2.39%, were the major losers on the index.

Most of the Asian equity indices were trading mixed; Jakarta Composite declined 0.34%, KLSE Composite slid 0.15%, Straits Times descended by 0.46.

On the flip side, Shanghai Composite gained 0.78%, Hang Seng up by 0.21%, Nikkei 225 added0.96%, Seoul Composite up 0.22%and Taiwan Weighted rose 1.01%.