Markets off day’s highs; Sensex hold 24,800 mark

Indian equity benchmarks have trimmed their initial gains but are trading in fine fettle with frontline gauges holding their crucial 24,800 (Sensex) and 7,500 (Nifty) levels. Traders remained cautious in reaction to the weak industrial production data and especially the capital goods stocks will be under pressure. IIP for the month of January came in at -1.5 compared to revised to -1.2 percent December IIP data earlier. Meanwhile, India’s main inflation gauge, based on monthly wholesale price index (WPI), stood at -0.9 percent from -0.9 percent in the month of January and -2.17 percent  during the corresponding month of the previous year. The February WPI remains unchanged on month on month basis.

On the global front, Asian markets were rallying at this point of time, extending a four-week rally ahead of key meetings this week by central banks in the U.S. and Japan. Back home, buying was seen across the counters led by banks after Reserve Bank of India (RBI) governor Raghuram Rajan commented that the headline fiscal deficit target for the next financial year (at 3.5 per cent) year is a comfort for the central bank has already hiked hopes of a rate cut. The broader indices too were trading in green, while the market breadth on the BSE was positive; there were 1,262 shares on the gaining side against 1,061 shares on the losing side while 155 shares remain unchanged.

The BSE Sensex is currently trading at 24809.86, up by 91.87 points or 0.37% after trading in a range of 24789.56 and 24960.51. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index up by 0.48%.

The top gaining sectoral indices on the BSE were Industrials up by 0.93%, Bankex up by 0.80%, Auto up by 0.72%, FMCG up by 0.67% and Basic Materials up by 0.65%, while Metal down by 1.89%, Energy down by 0.74%%, PSU down by 0.73%, Consumer Durables down by 0.14% and Realty down by 0.08% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 3.39%, ICICI Bank up by 3.32%, BHEL up by 1.93%, GAIL India up by 1.57% and Axis Bank up by 1.08%. On the flip side, Coal India down by 6.66%, Bajaj Auto down by 0.68%, Sun Pharma down by 0.45%, TCS down by 0.38% and Bharti Airtel down by 0.33% were the top losers.

Meanwhile, total revenue foregone stood at Rs 1,84,764 crore, which was 97.74 per cent of revenue from central excise, in the Financial year 2015, on account of exemptions in excise duty, according to the report on 'Indirect taxes-Central Excise' tabled in Parliament by Comptroller and Auditor General of India (CAG). It was the first time in five years that revenue forgone was less than the central excise tax figure at Rs 1,89,038 crore.

Further, the report said that a sizable amount of Rs 81,538 crore of the central excise revenue is blocked in appeals. The amount is increasing every year. Despite, a number of measures initiated by the Board, locking up of such large revenue is a matter of concern. The report also highlighted that during 2014-15, increase in central excise duty on petrol and high speed diesel resulted in increase of central excise collection from petroleum sector.

In 2013-14, the revenue forgone was at Rs 1.96 lakh crore which was 115.80 per cent of the central excise receipts; in 2012-13 the revenue was Rs 2.09 lakh crore which was 119.39 per cent; in 2011-12 it was Rs 1.95 lakh crore which was 134.98 per cent of the central excise receipts and Rs 1.92 lakh crore stood in 2010-11 which was about 139.60 per cent.

The CNX Nifty is currently trading at 7533.70, up by 23.50 points or 0.31% after trading in a range of 7530.70 and 7583.70. There were 35 stocks advancing against 15 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 3.27%, Tata Motors up by 3.03%, GAIL India up by 1.90%, Ambuja Cement up by 1.64% and Zee Entertainment up by 1.46%. On the flip side, Coal India down by 6.59%, Bajaj Auto down by 0.81%, Kotak Mahindra Bank down by 0.54%, Sun Pharma down by 0.53% and HDFC down by 0.38% were the top losers.

Asian markets were trading in green; KOSPI Index rose 0.86 points or 0.04% to 1,972.27, FTSE Bursa Malaysia KLCI gained 3.14 points or 0.19% to 1,699.68, Taiwan Weighted increased 41.76 points or 0.48% to 8,747.90, Shanghai Composite soared 46.37 points or 1.65% to 2,856.68, Jakarta Composite surged 51.29 points or 1.07% to 4,865.07, Hang Seng added 210.42 points or 1.04% to 20,410.02 and Nikkei 225 was up by 294.88 points or 1.74% to 17,233.75.