Losses recede at Dalal Street; Information Technology stocks power ahead

Benchmark indices have pared losses ahead of the RBI’s mid-quarterly review, with trader’s largely pinning on rate cut hopes. Stocks from Information Technology counters and Technology counters are the one’s that have aided the markets in trimming their losses. However, stocks from Consumer Durable, Metal and Realty stocks are the one’s that are playing an overhaul on the market.

Lack of positive global leads could also be held accountable for jaded momentum of Indian equity markets. After lower close of Wall Street overnight, Asian stocks are depicting mixed trend as concerns that China's growth won't be as robust as once thought tempered optimism stemming from a positive assessment the Federal Reserve made on the U.S. economy. However, the US future indices are showcasing an uptick in the screen trade.

Benchmark 30 share index of Bombay Stock Exchange (BSE)-Sensex-after starting above the 17900 mark, is currently lying lower below it with a difference close to 50 points. Meanwhile, the 50 share index of National Stock Exchange (NSE)- Nifty- declining by 15 points is trading sub 5450 level. The broader indices, too have pared losses. Meanwhile, days after slashing CRR by 75 basis points and infusing Rs 48,000 billion into Indian banking system, the Reserve Bank of India has moved on to keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.5 percent. Consequently, the reverse repo rate under the LAF has been left unmoved at 7.5 percent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.5 percent.

Recent growth-inflation dynamics have prompted the Reserve Bank to indicate that no further tightening is required and that future actions will be towards lowering the rates. However, notwithstanding the deceleration in growth, inflation risks remain, which will influence both the timing and magnitude of future rate actions.

The BSE Sensex is currently trading at 17,870.38, down by 48.92 points or 0.27%. The index has touched a high and a low of 17,918.25 and 17,814.67 respectively.   There were 10 stocks advancing against 20 declining one’s on the index.

The broader indices too pared their losses in line with frontline indices; the BSE Mid cap and small cap indices were down by 0.25% and 0.22% respectively.

The only gaining sectoral indices on the BSE were, IT up by 0.35%, TECk up by 0.21%. While, CD down by 1.34%, Metal down by 1.16%, Realty down by 0.87%, PSU down by 0.63% and Auto down by 0.60% were the top losers on the index.

The top gainers on the Sensex were GAIL India up by 1.30%, NTPC up by 0.96%, HUL up by 0.71%, TCS up by 0.61% and Infosys up by 0.41%.

On the flip side, Coal India down by 2.58%, DLF down by 1.75%, Sterlite Industries down by 1.49%, BHEL down by 1.47% and ONGC down by 1.31% were the top losers on the Sensex.

The S&P CNX Nifty is currently trading at 5,441.10, lower by 22.80 points or 0.42%. The index has touched a high and a low of 5,462.50 and 5,427.80 respectively. There were 14 stocks advancing against 36 declining one’s on the index.

The top gainers of the Nifty were Ambuja Cement up by 1.40%, Dr Reddy up by 0.98%, GAIL up by 0.95%, NTPC up by 0.84% and HUL up by 0.66%.

On the flip side, Reliance Communication down by 2.98%, RPower down by 2.68%, Jaiprakash Associates down by 1.91%, DLF down by 1.90% and Reliance Infra down by 1.79% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite declined 0.12%, Hang Seng lost 0.17%, Straits Times slid 0.15% and Taiwan Weighted lost 0.14%.

On the flip side, Seoul Composite gained 0.05%, Jakarta Composite added 0.13%, KLSE Composite inched up by 0.02% and Nikkei 225 spurted by 1.07%.