Benchmarks turn flat in noon deals

Erasing all their initial gains, Indian equity benchmarks have turned flat in noon deals. Investors remained cautious as they patiently wait for the RBI monetary policy review due tomorrow. Depreciation in Indian rupee too dampened sentiments. Rupee depreciated by 10 paise to 66.36 against the US currency in noon deals at the Interbank Foreign Exchange due to increased demand for the dollar from importers. Investors failed to get any sense of relief with The Nikkei purchasing managers’ index (PMI) survey showing that India’s manufacturing at an eight month high of 52.4 after the 51.1 points reading in February. This is a third consecutive monthly improvement in business conditions across the sector.

On the global front, Asian markets were trading mostly in green at this point of time after solid US payroll data underpinned investor risk sentiment while dovish comments from Federal Reserve Chair Janet Yellen the previous week kept the US dollar in check. Back home, shares of oil exploration and production (E&P) companies edged lower on account of decline in crude oil prices. The broader indices were managed to trade above water, while the market breadth on the BSE was positive; there were 1,324 shares on the gaining side against 912 shares on the losing side while 133 shares remain unchanged.

The BSE Sensex is currently trading at 25259.77, down by 9.87 points or 0.04% after trading in a range of 25258.55 and 25419.19. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.13%, while Small cap index up by 0.22%.

The top gaining sectoral indices on the BSE were IT up by 1.26%, TECK up by 1.23%, Telecom up by 1.07%, Consumer Durables up by 0.80% and Auto up by 0.78%, while FMCG down by 0.68%, Energy down by 0.51%, Realty down by 0.47%, Oil & Gas down by 0.40% and Finance down by 0.39%, were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.10%, Bharti Airtel up by 2.01%, Infosys up by 1.85%, Dr. Reddys Lab up by 1.73% and Tata Motors up by 1.57%. On the flip side, ITC down by 1.79%, BHEL down by 1.54%, ONGC down by 1.51%, Lupin down by 1.27% and HDFC down by 1.01% were the top losers.

Meanwhile, Oil Marketing Companies (OMCs) taking cues from the global oil market conditions have cut non-subsidized or market-priced domestic cooking gas (LPG) by Rs 4 per 14.2-kg bottle, which consumers buy after exhausting their quota of subsidised cooking fuel. Following the cut, non-subsidised cooking gas (LPG) now costs Rs 509.50 per 14.2-kg cylinder in Delhi as against Rs 513.50 previously. Non-subsidised LPG price was last cut on March 1 by Rs 61.50 per 14.2-kg bottle.

However, the oil firms have hiked the prices of the Jet fuel or aviation turbine fuel (ATF). In Delhi, it has been raised by Rs 3371.55 per kilolitre, or 8.69 percent, to Rs 42,157.01 per kilolitre. The hike comes on the back of a marginal 1.3 percent or Rs 515.85 cut in rates on March 10. Prior to that, rates were hiked by steep 12 percent, or Rs 4,174.49, on March 1, almost neutralizing Rs 4,765.5 cut on February 1. Jet fuel prices constitute over 40% of an airline’s operating cost. Rates vary from airport to airport depending on the local sales tax or value-added tax (VAT).

State-owned fuel retailers, Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) revise jet fuel and non-subsidised LPG prices on the first of every month based on average imported cost and rupee-dollar exchange rate.

The CNX Nifty is currently trading at 7722.55, up by 9.50 points or 0.12% after trading in a range of 7716.35 and 7757.60. There were 29 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 3.81% and Tata Power up by 3.60% and Idea Cellular up by 3.36% and Bharti Airtel up by 2.13% and Mahindra & Mahindra up by 2.07%. On the flip side, Bharti Infratel down by 2.66%, ITC down by 1.77%, ONGC down by 1.68%, Lupin down by 1.26% and BHEL down by 1.25% were the top losers.

Asian markets were trading mostly in green; KOSPI Index increased 5.4 points or 0.27% to 1,978.97, Shanghai Composite rose 5.62 points or 0.19% to 3,009.53, Jakarta Composite gained 5.96 points or 0.12% to 4,849.15 and FTSE Bursa Malaysia KLCI was up by 8.68 points or 0.51% to 1,719.23.

On the flip side, Hang Seng declined 277.78 points or 1.34% to 20,498.92, Taiwan Weighted decreased 87.28 points or 1% to 8,657.55 and Nikkei 225 was down by 40.89 points or 0.25% to 16,123.27.