Equity markets trade at day’s low; banks major losers

Indian equity markets continue to languish, currently trading deep down in negative territory on sustained selling almost across the board. However, investors were worried about weak global economic outlook and caution ahead of the reporting season keeping investors away from making any strong position. Sensex plunged more than 250 points, while nifty was holding 5200 level. Meanwhile, higher oil prices were adding to the caution over India's finances. On sectoral front all sectors were trading in red. Banking stocks dropped over 2% as high oil prices are sparking fears of a delay in rate cuts from the RBI. Government’s borrowing calendar due this week too was making the mood cautious. On global front most of the Asian markets were trading in red. Back home, the market breadth was favoring the negative trend; there were 849 shares on the gaining side against 1588 shares on the losing side while 89 shares remained unchanged.

The BSE Sensex is currently trading at 17,105.06, down by 256.68 points or 1.48%. The index has touched a high and a low of 17,377.59 and 17,087.88 respectively.  There were only 2 stocks advancing against 28 declining ones on the index.

The broader indices too were trading in the red; the BSE Mid cap and Small cap indices declined 0.91% and 0.68% respectively.

The major losing sectoral indices on the BSE were, Bankex down by 2.12%, Realty down by 1.96%, Power down by 1.86%, Auto down by 1.54% and PSU down by 1.42%, while there were no gainers on the index.

The few gainers on the Sensex were Jindal Steel up by 0.41% and Wipro up by 0.15%.

On the flip side, Tata Power down by 3.82%, ICICI Bank down by 3.33%, Hero MotoCorp down by 2.82%, Bharti Airtel down by 2.28% and NTPC down by 2.24% were the top losers on the Sensex.

Meanwhile, domestic gas production is likely to fall in the coming two years and the power ministry has advised power developers not to plan any projects based on domestic gas till 2015-2016. The power ministry has issued a notification stating that Ministry of Petroleum and Natural Gas has indicated that NELP (new exploration licensing policy) gas production was likely to go down by 15.03 mmscmd in 2012-13 and further by 3.42 mmscmd in 2013-14 as compared to the availability of 42.67 mmscmd in 2011-12. Further, no projections have been made for the years 2014-15 and 2015-16. Hence no additional gas is likely to be available till 2015-16.

The notification could increase troubles for power generating companies some of which have plants ready but not operational due to the shortage of gas. Given the shortages, the Association of Power Producers which includes private power producers such as Reliance Power, Tata Power, Lanco Infratech and the Adani group are of the opinion that gas price pooling should be allowed as this alone would ensure fuel for 9,500 MW of upcoming projects. However, the power ministry has rejected the plea stating that it is a non workable solution. 

The S&P CNX is currently trading at 5,200.20, lower by 78.00 points or 1.48%. The index has touched a high and a low of 5,274.95 and 5,193.70 respectively.  There were only 5 stocks advancing against 45 declines on the index.

The top gainers of the Nifty were JP Associate up by 2.27%, Kotak Bank up by 1.60%, Ranbaxy up by 0.34%, Jindal Steel up by 0.25% and Wipro up by 0.16%.

On the flip side, IDFC down by 3.88%, Tata Power down by 3.87%, Axis Bank down by 3.74%, ICICI Bank down by 3.24% and Sesa Goa down by 2.94% were the major losers on the index.

Most of the Asian markets were trading in red; KLSE Composite held up by 0.05% and Nikkei 225 added 0.18%.On the flip side, Shanghai Composite down 0.08%, Hang Seng down by 0.14%, Jakarta Composite declined 0.38%, Straits Times slid 0.31%, Seoul Composite plunged 0.46% and Taiwan Weighted surrendered 1.35%.