Global headwinds keep Indian equity markets in tailspin

Global headwinds kept Indian equity markets in tailspin as barometer gauges enticed additional weakness in comparison to early deals. Political developments in Greece, which fanned concerns about Europe's fiscal health, mainly led to hefty position squaring on Dalal Street for second consecutive session. Widely, followed 50 share index, Nifty on National Stock Exchange (NSE) after ending near a level, not seen since January 18, continued to stagger under 5000 bastion, while the 30 scrip sensitive index of Bombay Stock Exchange (BSE)-Sensex- was oscillating around the 16500 mark. The broader indices too reeled under pressure with cut of over 0.30%.

On the global front, regional counterparts too were not showing an exceptional trend as tottering under pressure major Asia pacific indices had dipped their heads in red, tracing the negative close of Wall Street overnight. Dow industrials fell on a fifth straight day as jitters over political uncertainty in Greece outweighed a rise in US small-business confidence. Broad based pressure was sensed across the globe after Greece struggled to form a government two days after an election, heightening the risk that a hard-won bailout deal could be scrapped.

Back on the home turf, Realty, Metal and Oil & Gas space witnessed the nasty brunt of profit booking, while FMCG, IT and Capital Goods showcased immense resilience. Meanwhile, the newly listed stock-Tribhovandas Bhimji Zaveri made poor debut on BSE; by slipping over 7% from its fixed issue price. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1184:891, while 93 shares remained unchanged.

The BSE Sensex is currently trading at 16,502.79, down by 43.39 points or 0.26%.  The index has touched a high and low of 16,542.40 and 16,436.41 respectively. There were 9 stocks advancing against 21 declines on the index. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1184:891, while 93 shares remained unchanged.

The broader indices, too witnessed profit booking; the BSE Mid cap and Small cap indices were down by 0.34% and 0.44% respectively.

The few gaining sectoral indices on the BSE were, FMCG up by 2.07%, IT up by 0.33% CG up by 0.10%. While, Realty down by 2.01%, Metal down by 1.59%, Oil and Gas down by 1.21%, PSU down by 1.14% and Bankex down by 1.11% were the top losers on the index.

The top gainers on the Sensex were ITC up by 4.20%, TCS up by 2.18%, Wipro up by 0.71%, HDFC Bank up by 0.66% and BHEL up by 0.62%.

On the flip side, DLF down by 3.29%, Sterlite Industries down by 2.58%, Jindal Steel down by 2.00%, ICICI bank down by 1.72% and M&M down by 1.63% were the top losers on the Sensex.

Meanwhile, Indian government is taking copious numbers of incentives and action for promoting the exports of agricultural products including fruits and vegetables under Plan schemes of the Commodity Boards and Export Promotion Councils etc. These schemes are likely to benefit the entire horticulture industry.

Under the administrative control of the Department of Commerce, the Agricultural and Processed Food Products Export Development Authority (APEDA) is also putting various Schemes into practice to expand financial assistance to the eligible exporters; namely schemes for market development; infrastructure development; quality development; research & development and transport assistance. Besides these measures, the Ministry of Commerce & Industry has put in place various schemes namely MDA, MAI, ASIDE, Vishesh Krishi and Gram Upaj Yojana, Focus Product Scheme, Focus Market Scheme, Town of Export Excellence, etc. to encourage exports.

The government also provides assistance under Centrally Sponsored Scheme on National Horticulture Mission (NHM) for various interventions aimed at increasing production and productivity of horticultural crops for the holistic development of horticulture in the country. Production related activities include development of planting material through nurseries, area expansion, rejuvenation, integrated pest management, integrated nutrient management and creation of water resources. Besides, assistance is also being included for creating infrastructure for post harvest management and marketing.

Export of fruits and vegetables are allowed without any constraint under the Foreign Trade Policy (FTP).  The government keeps close and steady eyes on the accessibility of all agriculture products at reasonable price in domestic market and imposes restrictions on their exports as and when requiredThe S&P CNX Nifty is currently trading at 4,979.35, lower by 20.60 points or 0.41%. The index has touched a high and low of 4,998.00 and 4,959.65 respectively.  There were 12 stocks advancing against 38 declines on the index.

The top gainers of the Nifty were ITC up by 4.25%, TCS up by 2.04%, Asian Paints up by 1.82%, Ranbaxy Lab up by 1.19% and BPCL up by 1.07%.

On the flip side, JP Associates down by 3.75%, DLF down by 3.56%, SAIL down by 3.31%, Sterlite Industries down by 2.88% and Sesa Goa down by 2.66%. were the major losers on the index.

All the Asian equities were exhibiting the choppy trade; Shanghai Composite declined 1.40%, Hang Seng descended 0.89%, Jakarta Composite plunged 1.30%, KLSE Composite slid 0.18%, Nikkei 225 plummeted 1.45%, Straits Times lost 0.72%, KOSPI Composite surrendered 0.84% and Taiwan Weighted skid by 0.80%.