Unrelenting profit booking sends benchmarks to intra-day’s low level

Unrelenting profit booking by investor’s after previous session’s sharp reversal has kept the sentiment downcast at Dalal Street. Barometer gauges, after getting a muted start, went on systematically offloading gains, as investor’s read through the provisional data, which showed that foreign investors were net sellers of Rs 630 crore in Indian equities on Monday, even as Finance Minister Pranab Mukherjee delayed General Anti-Avoidance Rule until fiscal 2013/14. Meanwhile, a steady close of Wall Street, mainly buoyed the subdued trend at Dalal Street, even as, optimism of regional counterparts, was down in drain.

Unlike Indian equities, Asian shares rebounded after sharp falls the previous day, amid fading concerns about Europe’s election results and renewed optimism about economic recoveries in the US and Germany.

Back on the home turf, stocks from Information Technology (IT), TECk and Power counters were topping the selling list, however, strength from Public Sector Undertaking, coupled with Fast Moving Consumer Goods and Realty counters, limited the downside of the bourses. IT gauge tumbled over 2% after Cognizant Technology Solutions lowered its full-year forecast for the first time in nearly four years, echoing sentiments expressed by its India-based rivals like Infosys and Wipro as they battle lower discretionary spending by clients especially in the financial services segment.

The barometer 30 share index of BSE-Sensex, after losing its 17000 fortress, is currently trading sub its 16800 level, with a cut of over 0.50%. Similarly, the 50 share index of National Stock Exchange (NSE)-Nifty- after withering over 25 points, was trading sub 5100 bastion. However, the trend was exception for broader indices, which were holding their neck in green, with gains of over 0.15%. The overall market breadth on BSE, was in the favour of advances which thumped declines in the ratio of 1086:869, while 95 shares remained unchanged.

The BSE Sensex is currently trading at 16,791.18, down by 121.53 points or 0.72%.  The index has touched a high and low of 16,918.31 and 16,744.40 respectively.  There were 8 stocks advancing against 22 declines on the index.

The broader indices continued to trade in fine fettle; the BSE Mid cap and Small cap indices were trading up by 0.16% and 0.20% respectively.

The top gaining sectoral indices on the BSE were, PSU up by 1.02%, FMCG up by 0.77%, Realty up by 0.40%. While, IT down by 2.82%, TECk down by 2.18%, Power down by 0.92%, CG down by 0.83% and Auto down by 0.72% were the top losers on the index.

The top gainers on the Sensex were GAIL India up by 3.72%, Coal India up by 2.33%, DLF up by 1.29%, ITC up by 1.04% and HDFC up by 0.82%.

On the flip side, TCS down by 3.80%, Infosys down by 2.48%, Wipro down by 2.31%, BHEL down by 2.07%, and Tata Motors up by 1.95% were the top losers on the Sensex.

Meanwhile, prices of diesel should be varied as per the end consumer and efforts should be made for an early creation of the fuel-pipeline-grid, as per the industry body ASSOCHAM. It is of the view that prices of diesel should be deregulated in a phased manner where a full market price is charged for large cars and luxury buses whereas the price is nominal for others.

It is also of the opinion that it is unfair when users of luxury vehicles get diesel fuel at the same subsidised rate as those who drive small and medium sized cars. Further, small farmers should be shielded from the price rise at least for the time being and prices for them should be changed gradually. It has also been suggested that the government should encourage replacing old vehicles, especially trucks, modern trailers with high efficiency engines.

The industry body is not in the favour of alternate solution of decreasing the taxes on fuel to make it cheaper as it feels that such a move will lower the revenues of the government substantially. This will further lead to either cutting down government’s development expenditure or raising the level of deficit financing. Either option goes against the objective of inclusive growth.

A detailed study by the chamber on diesel use has pointed out that use of high capacity trucks, paving of all major roads with cement and removal of administrative impediments to smooth highway movement of trucks will itself ensure large scale saving of diesel for trucks. It would also save the use of diesel in goods transportation and buses which would decrease the higher costs transport bodies would have to incur when diesel prices are aligned with the market price. 

The S&P CNX Nifty is currently trading at 5,079.35, down by 34.80 points or 0.68%. The index has touched a high and low of 5,119.95 and 5,063.40 respectively.  There were 17 stocks advancing against 33 declines on the index.

The top gainers of the Nifty were GAIL up by 3.50%, Coal India up by 2.27%, DLF up by 1.29%, Bank of Baroda up by 1.25% and ITC up by 1.23%.

On the flip side, TCS down by 3.79%, HCL Tech down by 3.10%, Infosys down by 2.90%, Wipro down by 2.83% and BHEL down by 2.05%, were the major losers on the index.

Most of the Asian equity indices were trading in the green; Jakarta Composite added 0.14%, KLSE Composite gained 0.17%, Nikkei 225 soared 0.62%, Straits Times accumulated 0.35%, KOSPI Composite spiked up by 0.43% and Taiwan Weighted was up by 0.25%.

On the flip side, Shanghai Composite down by 0.60% was the lone loser amongst Asian pack.