Domestic bourses trade lower in early trade on subdued global cues

The frontline Indian stock indices, after making a positive start, have entered into red terrain with the BSE Sensex and the NSE Nifty losing some ground in early morning trade on Monday, dragged lower by weakness in global markets. Wall Street stocks dipped on Friday post an unexpected drop in the US unemployment rate was overshadowed by concerns about the earnings season. While, most of the Asian markets were trading in the red at this point of time ahead of a meeting by European finance ministers later in the day to discuss the region’s debt crisis. Meanwhile, China’s GDP growth is estimated to fall to 7.7 percent this year because of weak exports and lower investment growth.

Back home, Sensex and Nifty lost their crucial 18,900 and 5,750 levels respectively, as investors remained on the sidelines ahead of second quarter earnings season, which starts from October 12, 2012 with Infosys Q2 results. However, telecom stocks providing some strength to the gauges as stocks like Idea Cellular, Bharti Airtel and RCom traded with traction as the Empowered Group of Ministers led by Finance Minister P Chidambaram will be meeting today on the spectrum issue, the decision on charging telecom service providers for excess spectrum beyond contractual obligations is likely to be taken. Moreover, Hotel stocks viz. Hotel Leela Venture, The Indian Hotels Company and Taj Hotels Resorts all edged higher after the government on October 5, 2012, unveiled data that suggested foreign tourist arrivals in India rose 3.2% in September 2012 over September 2011.

On the sectoral front, consumer durables witnessed the maximum gain in trade followed by healthcare and technology while, banking, oil and gas and power remained the top losers on the BSE sectoral space. The broader indices were outperforming benchmarks while, the market breadth on the BSE was positive; there were 1,132 shares on the gaining side against 640 shares on the losing side while 61 shares remain unchanged.

The BSE Sensex opened at 18,969.19; about 31 points higher compared to its previous closing of 18,938.46, and has touched a low of 18,865.97 while high remain its opening.

The index is currently trading at 18,895.04, down by 43.42 points or 0.23%. There were 13 stocks advancing against 17 declines on the index.

The overall market breadth has made a positive start with 61.76% stocks advancing against 34.92% declines. The broader indices were outperforming with benchmarks; the BSE Mid cap and Small cap indices rose 0.49% and 0.59% respectively.

The top gaining sectoral indices on the BSE were, CD up by 1.23%, HC up by 1.08%, TECk up by 0.28%, Metal up by 0.21% and IT up by 0.15%. While, Bankex down by 0.66%, Oil and Gas down by 0.60%, Power down by 0.58%, Realty down by 0.51% and CG down by 0.51% were the top losers on the index.

The top gainers on the Sensex were Sun Pharma up by 2.19%, Cipla up by 1.54%, Sterlite Industries up by 1.34%, Maruti Suzuki up by 1.15% and Bharti Airtel up by 1.00%.

On the flip side, BHEL was down by 1.96%, Tata Power was down by 1.73%, Hindalco was down by 1.32%, Wipro was down by 1.26% and RIL was down by 1.07% were the top losers on the Sensex.

Meanwhile, emphasizing the necessity to revitalize the economic growth of the nation, the President Pranab Mukherjee has urged exporters to focus on developing new export markets in the emerging and developing countries where rate of growth in the medium term will be comparatively better than in the developed nations. He pointed out that the nation had achieved better financial growth during 2003-04 to 2007-08, with the backing from diversified export markets of Asia and Africa.

He further emphasized the need to have quality consciousness, service delivery and complete transparency; he advised exporters to maintain high quality of their products as it will reflect not only the image of their company or their brand, but also the image of India as a source of top quality products. He noted that as part of globalization, Euro-zone crisis has caused lower financial growth in India also, like any other nation leaving it with worsening business sentiments, trimmed down investments and exchange rates, volatile stock market and attendant implications for investor confidence.

The slowdown in external demand has led to significant deceleration in the growth of exports, with the outward shipments showing a negative growth since May 2012.He also proposed FIEO and other business organizations along with the Government should aid in exploring new markets and suggested more interactive and coordinated approach to be maintained to ensure high export intensity to improve the current low penetration in overseas markets.

The S&P CNX Nifty opened at 5,751.85; about 5 points higher compared to its previous closing of 5,746.95, and has touched a high and a low of 5,751.85 and 5,719.50 respectively.

The index is currently trading at 5,730.70, down by 16.25 points or 0.28%. There were 19 stocks advancing against 31 declines on the index.

The top gainers of the Nifty were Sun Pharma up by 2.40%, IDFC up by 1.51%, Maruti Suzuki up by 1.37%, Cipla up by 1.36% and BPCL up by 1.30%.

On the flip side, DLF down by 2.98%, BHEL down by 2.01%, Tata Power down by 1.50%, Wipro down by 1.46% and Hindalco down by 1.40%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite was down by 7.95 points or 0.38% to 2,078.22, Hang Seng lost 137.73 points or 0.66% to 20,874.65, KLSE Composite was marginally down by 1.89 points or 0.12% to 1,658.25, Straits Times declined by 18.35 points or 0.59% to 3,089.52, Kospi Composite was lower by 13.45 points or 0.67% to 1,981.72 and Taiwan Weighted declined by 49.01 points or 0.64% to 7,641.64.

Jakarta Composite was the lone gainer, up by 10.30 points or 0.24% to 4,321.62.

Markets in Japan remained closed on account of Health-Sports Day.