Benchmarks decline after a positive opening

Indian benchmarks fell in early trade after opening higher, with ONGC leading the drop after a muted response to a government stake sale. However, global cues remained supportive as the US markets closed marginally higher overnight on the back of better than expected jobless claims data while, all the Asian equity indices were trading in the positive terrain. Moreover, it was good news on the European front as well. European leaders accelerated payments to fund the bailout. The second injection of cash by the European Central Bank eased worries. Back home, the green signals on the global front eased the worries of domestic investors. But this was only momentary, the markets soon slipped into negative territory, minutes after the opening. The selling persists due to the uncertainty over the results of the UP elections and the forthcoming important Budget. Meanwhile, stocks of auto makers attracted increased buying support largely on the back rise in their sale in February. Tata Motors up by 0.88 percent, Maruti Suzuki by 0.57 percent, while Hero MotoCorp by 0.83 percent. The broader indices were outperforming benchmarks. The market breadth on the BSE was positive; there were 840 shares on the gaining side against 720 shares on the losing side while 71 shares remained unchanged.

The BSE Sensex opened at 17,661.39; about 77 points higher compared to its previous closing of 17,583.97, and has touched a high and a low of 17,674.63 and 17,504.38 respectively.

The index is currently trading at 17,560.87, down by 23.10 points or 0.13%. There were 16 stocks advancing against 14 declines on the index.

The overall market breadth has made a positive start with 51.50% stocks advancing against 44.14% declines. The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices rose 0.12% and 0.20% respectively.

The top gaining sectoral indices on the BSE were, HC up by 0.51%, Power up by 0.49%, CG up by 0.35%, Auto up by 0.34% and Metal up by 0.28%. While, Realty down by 1.50%, PSU down by 0.57%, Bankex down by 0.46%, FMCG down by 0.34% and CD down by 0.27% were the top losers on the index.

The top gainers on the Sensex were Sun Pharma up by 1.54%, BHEL up by 1.20%, NTPC up by 1.16%, Tata Steel up by 1.14% and M&M up by 0.93%.

On the flip side, DLF was down by 4.26%, ONGC was down by 3.07%, Bajaj Auto was down by 0.99%, HDFC was down by 0.83% and HDFC Bank was down by 0.81% were the top losers on the Sensex.

Meanwhile, India’s trade deficit widened to $14.7 billion in January 2012 as compared to $10.3 billion in January 2011. As per provisional data released by the Ministry of Commerce & Industry, trade deficit for April-January, 2011-12 was estimated at $148.667 billion which was 40.39% higher than the deficit of $105.895 billion during April-January, 2010-11.

India’s exports in dollar terms grew by 10.10 % year-on-year, during January, 2012. Cumulative value of exports for the period April-January 2011 -12 registered a growth of 23.47% in dollar terms.

India’s imports during January, 2012 grew by 20.25% (in dollar terms).  Cumulative value of imports for the period April-January, 2011-12 registered a growth of 29.40%. Oil imports during January, 2012 were valued at $12.325 billion which was 26.78% higher than imports valued at $9.721 billion in the corresponding period last year.  Oil imports during April-January, 2011-12 were valued at $117.914 billion which was 38.83% higher than $84.933 billion in the corresponding period last year.

Non-oil imports during January, 2012 were estimated at $ 27.782 billion which was 17.56% higher from January, 2011.  Non-oil imports during April - January, 2011-12 were valued at $ 273.545 billion, up by 25.71% than the level of such imports in April - January, 2010-11.

The S&P CNX Nifty opened at 5,369.45; about 30 points higher compared to its previous closing of 5,339.75, and has touched a low of 5,315.05 while low remained its opening.

The index is currently trading at 5,328.15, down by 11.60 points or 0.22%. There were 23 stocks advancing against 27 declines on the index.

The top gainers of the Nifty were ACC up by 1.36%, Sun Pharma up by 1.32%, RPower up by 1.10%, NTPC up by 1.05% and IDFC up by 0.99%.

On the flip side, DLF down by 4.16%, ONGC down by 3.49%, HDFC Bank down by 0.85%, Bajaj Auto down by 0.83% and Siemens down by 0.80%, were the major losers on the index.

All the Asian equity indices were trading in the green; Shanghai Composite was up 22.55 points or 0.93% to 2,448.66, Hang Seng was up 207.94 points or 0.97% to 21,595.90, Jakarta Composite was up 22.69 points or 0.57% to 3,984.98, KLSE Composite was up 11.34 points or 0.72% to 1,584.79, Nikkei 225 was up 80.28 points or 0.83% to 9,787.65, Straits Times was up 14.12 points or 0.47% to 2,992.96, Seoul Composite was up 6.64 points or 0.33% to 2,036.89 and Taiwan Weighted was up 13.08 points or 0.16% to 8,131.42.