Benchmarks came off from higher levels on profit taking

Indian equity markets came off from its higher levels as investors trading cautiously and taking some profits. However, disappointments from the budget and the concerns about the slow pace of economic growth took a heavy toll on stocks over the past couple of sessions. Meanwhile, shares of Kingfisher Airlines are down 5.2%. The stock tumbled on reports that Vijay Mallya is expected to submit a revised schedule and to talk about a turnaround plan for the airline. Further it is also reported that the airliner's license is under threat. On the sectoral front automobile stocks started off on a fairly firm note, but have drifted down sharply from their highs now, with power stocks also declining into the negative zone. Realty, bank and metal stocks have given up most of their gains. Select information technology, healthcare, oil, capital goods and FMCG stocks are trading firm. On the global front most of the Asian markets were trading in red. Back home, the market breadth favoring the negative trend; there were 1,210 shares on the gaining side against 1,221 shares on the losing side while 151 shares remained unchanged.

The BSE Sensex is currently trading at 17,333.01, up by 59.64 points or 0.35%. The index has touched a high and a low of 17,410.13 and 17,245.92 respectively. There were 21 stocks advancing against 9 declines on the index.

The broader indices too were trading in fine fettle; the BSE Mid cap and Small cap indices were up by 0.06% and 0.05% respectively.

The top gaining sectoral indices on the BSE were, CD up by 1.35%, FMCG up by 0.76%, Oil & Gas up by 0.52%, IT up by 0.49%, and Metal up by 0.48%. While, Auto down by 1.04% and Power down by 0.22% were the top losers on the index.

The top gainers on the Sensex were TCS up by 1.88%, Jindal Steel up by 1.71%, ITC up by 1.41%, HDFC Bank up by 1.21% and Sun Pharmaceuticals up by 1.19%.

On the flip side, Tata Motors down by 1.97%, Coal India down by 1.90%, Bajaj Auto down by 1.75%, Hero MotoCorp down by 1.46% and Maruti Suzuki down by 1.28%, were the top losers on the Sensex.

Meanwhile, the global credit rating agency Moody’s has given a negative credit outlook to India after the recent Union Budget. As per the agency, the dependence on corporate tax revenue, vulnerability to commodity prices and volatile exchange rates weaken the government's credit profile. Moreover, the lack of specific policies to address these weaknesses in the Union Budget makes the outlook a 'credit negative'.

As per the rating agency no specific measures like subsidy cuts or an increase in fuel prices has been announced for the coming months. Also, no specific measures have been taken to increase government revenue.

An increase in the number of services falling under the gamut of service tax is expected to increase revenues but only to a limited extent as they contribute only 5% towards the total tax revenues. The already stalled economic reform process and an unstable global environment make the attainment of the 5.1% fiscal deficit target doubtful.

As per Moody’s, the government will have to depend upon a combination of improved GDP growth and corporate profitability along with lower global commodity prices as well as exchange rate stability to improve fiscal performance. Moody's currently has a credit rating of BAA3 on India with a stable outlook.

The S&P CNX Nifty is currently trading at 5,266.45, higher by 9.40 points or 0.18%. The index has touched a high and a low of 5,297.35 and 5,246.95 respectively. There were 27 stocks advancing against 23 declines on the index.

The top gainers of the Nifty were Cairn up 1.79%, Jindal Steel up by 1.63%, BPCL up by 1.57%, TCS up by 1.50% and ITC up by 3.15%.

On the flip side, Reliance Infra down by 2.98%, RPower down by 2.06%, Tata Motors down by 2.03%, IDFC down by 1.92% and Coal India down by 1.88% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite declined by 0.99%, Hang Seng slid 0.40%, Jakarta Composite edged lower by 0.20%, Seoul Composite lost 0.24% and Taiwan Weighted fell 0.89%. On the flip side, KLSE Composite gained 0.23% and Straits Times added 0.75%.

Stock markets in Japan remained closed on Tuesday for a national holiday on account of Spring Equinox.