Persistent profit booking drags benchmarks to intra-day’s low

Benchmark equity indices have nose-dived to intra-day’s low as persistent profit-booking in absence of fresh positive triggers, both on domestic as well as home front, has led to downtrend of the Indian equity markets, which taking a breather in the previous session, have resumed their southbound journey. 30 share barometer index, Sensex, of BSE, plunging over 150 points, is currently trading sub 17300 crucial level, while 50 share index, Nifty, too declining over a percent, is trading below the 5250 bastion. Additionally, the broader indices too have succumbed to the selling pressure.

On the global front, in wake of free-fall of Asian pacific shares, European markets have mostly got off to a positive start as investors brace for Thursday's monthly ECB meeting amid expectations the central bank will sketch upon a bond-buying plan to help lower struggling countries' long-term borrowing costs.

Closer home, lot of limelight has been hogged by UB group stocks, namely United Breweries, Kingfisher shares, United Spirits, United Breweries Holdings ahead of consortium of lenders to beleaguered Kingfisher Airlines meet today to discuss ways forward with their exposure to the Vijay Mallya-promoted carrier. Promoter’s bringing more equity to table, status on the sale of assets planned earlier and the current operational condition will be some of the issues taken on board for discussion in the meeting.

Meanwhile, hopes of petrol, diesel price hike are doing some good to PSU Oil Marketing Companies’ stocks since early deals. However, after staying firm since morning deals, some profit-booking seems to have dragged BPCL stocks lower, while HPCL and IOC stocks continue to trade in green. Sector wise, although selling witnessed is broad based, nevertheless, Metal, Capital Goods and Bankex counters have emerged as major pockets of weakness. However, showcasing resilience amidst sluggish trade are stocks from FMCG counters. The overall market breath on BSE is in the favour of declines which have thumped advances in the ratio of 1312:1132, while 137 shares remained unchanged.

The BSE Sensex is currently trading at 17,290.85, down by 150.02 points or 0.86% after touching a high of 17411.67 and low of 17,284.23. There were 5 stocks advancing against 25 declines on the index.

The broader indices too succumbed to selling pressure; the BSE Mid cap and Small cap index were trading lower by 0.34% and 0.11% respectively.

The sole gainer on the BSE sectoral space was, FMCG up by 0.19%. While Metal down by 2.37%, CG down by 1.95% Bankex down by 1.43%, Power down by 1.23%, and Health Care down by 1.16% were the top losers on the sectoral space.

The top gainers on the Sensex were Bharti Airtel up by 2.86%, Hindustan Unilever up by 0.85%, HDFC up by 0.62%, HDFC Bank up by 0.36% and ITC up by 0.21%. On the flip side, Jindal Steel down by 4.32%, BHEL down by 4.04%, Sterlite Industries down by 3.06%, Tata Steel down by 2.92% and ICICI Bank down by 2.62%, were the top losers on the Sensex. 

Meanwhile, amid concerns about a ballooning fiscal deficit in the slowing economy, Finance Minister P Chidambaram affirmed that the government will clamp down tax evasion and would achieve 2012/13 tax collection target of Rs 5,70,257 crore.

A slump in growth and a rising fuel subsidy bill have raised worries that the government may miss the fiscal deficit goal of 5.1% of GDP. In four months India has consumed half the deficit budgeted for the full fiscal year and finance ministry is now seeking ways to raise revenue.

Chidambaram confirmed that the government is planning to bring non-tax compliant firms under the tax net with an aim to reduce burden on tax receipts. He also added that the government would wait for the recommendations from government panel before deciding whether to issue a controversial tax demand to Vodafone for its $11 billion purchase of Hutchison Whampoa's Indian assets.

The S&P CNX Nifty is currently trading at 5,222.45, down by 51.50 points or 0.98% after trading in a range of 5,259.50 and 5,221.50. There were 4 stocks advancing against 45 declines on the index, while 1 stock remained unchanged.

The top gainers of the Nifty were Bharti Airtel up by 2.48%, HUL up by 0.96%, HDFC up by 0.81% and HDFC Bank up by 0.54%. On the flip side, AXIS Bank down by 4.83%, Jindal Steel down by 4.38%, BHEL down by 3.88%, Sterlite Industries down by3.01% and Tata Steel down by 2.96% were the major losers on the index.

All the Asian indices were trading in red; Nikkei 225 plunged 1.09%, Hang Seng index slid 1.43%, Shanghai Composite lost 0.51%, Kospi Composite Index plummeted by 1.74%, Taiwan Weighted skid 1.13%, Jakarta Composite lost 0.53%, Straits Times slid 0.64% and KLSE Composite declined by 0.69%.

European markets have got off to soft start; CAC 40 added 0.01%, DAX rose 0.32% and FTSE100 slid 0.03%.