Sensex, Nifty slips into negative territory

After opening on a firm note, Indian equity markets slipped into negative territory and currently trading at low point of the day amid some profit booking. Further, manufacturing activity, based on HSBC purchasing managers’ index (PMI), eased further to lowest level since November to 52.8 in August, 2012, also pressurized the market, while positive cues from Asian peers and a likely postponement of the implementation of GAAR, limited the losses. In currency markets, rupee touched 1-week high level, as Ben Bernanke left the door open for more fiscal stimulus at the Jackson Hole conference. On sectoral front, Oil stocks were trading weak. FMCG, pharmaceuticals, bank and realty stocks were mostly subdued. Metal stocks, which opened on a bright note this morning thanks to a firm trend on the London Metal Exchange on Friday, have dropped down to lower levels now. In global markets, most Asian shares were trading in green. Back home, the market breadth favoring positive trend; there were 1,328 shares on the gaining side against 1,041 shares on the losing side while 92 shares remained unchanged.

The BSE Sensex is currently trading at 17,384.92 down by 44.64 points or 0.26% after touching a high of 17509.99 and low of 17,384.92. There were 11 stocks advancing against 18 declines on the index and one remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.23% and Small cap index was up by 0.22%.

The top gainers on the BSE sectoral space were, CD up by 0.30%, Power up by 0.25%, IT up by 0.21%, TECk up by 0.14% and Auto up by 0.10%. While, Oil & Gas down by 0.90%, Realty down by 0.60%, HC down by 0.44%, Metal down by 0.44% and FMCG down by 0.38% were top losers on the index.

The top gainers on the Sensex were Bajaj Auto up by 2.20%, Cipla up by 1.41%, NTPC up by 1.31%, Maruti Suzuki up by 0.83% and Bharti Airtel up by 0.69%. On the flip side, Jindal Steel was down by 1.96%, Reliance down by 1.22%, Tata Power was down by 1.20%, ICICI Bank was down by 1.02% and Hindustan Unilever  was down by 0.99%, were the top losers on the Sensex.

Mean while, marking a fourth straight rise since the month of July, Jet fuel or Aviation Turbine Fuel (ATF) prices were hiked by a steep 7.6 per cent or by Rs 5,146.16 per kilolitre (kl), the biggest hike ever that took ATF price to all-time high of Rs 72,282 per kilolitre, with effect from August 31 midnight. Previous high in ATF price of Rs 71,028.26 per kl was hit in August, 2008. In Mumbai, jet fuel will now cost Rs 72,830.64 per kl as against Rs 68,103.26 per kl at present.

This steep hike in price in absolute numbers comes on back of firming international oil rates and slide in rupee value against the US dollar. However, percentage wise it remains lower than the 12 per cent hike in rates effected from June 16, 2009 when prices were hiked by Rs 3,948.59 per kl to Rs 36,251.51 per kl.

Meanwhile, this hike adds to the burden of cash- strapped airlines. Jet fuel constitutes over 40 per cent of an airline's operating costs and the increase in prices definitely adds to fresh burden on the cash-strapped airlines.

The S&P CNX Nifty is currently trading at 5,257.90, down by 0.60 points or 0.01% after trading in a range of 5,295.80 and 5,255.95. There were 20 stocks advancing against 30 declines on the index.

The top gainers of the Nifty were Bajaj-Auto up by 2.16%, Cipla up by 1.87%, Ranbaxy up by 1.36%, NTPC up by 1.34% and PowerGrid up by 1.21%. On the flip side, Ambuja Cement down by 2.05%, Jindal Steel down by 1.96%, Siemens down by 1.33%, GAIL down by 1.20% and BPCL down by 1.18%, were the major losers on the index.

Most of the Asian indices were trading in green; Hang Seng index up by 0.30%, Shanghai Composite up by 0.64%, Jakarta Composite up by 0.61%, Kospi Composite Index up by 0.40%, Taiwan Weighted up by 0.72% and KLSE Composite up by 0.52%, while Straits Times down by 0.12% and Nikkei 225 down by 0.63% were the only losers.