Benchmarks surrender additional ground; broader indices showcase resilience

Bleak global set-up continued to sap risk appetite of local investor’s which lacking any positive triggers from home front too continued to cash-in risky equities thereby leading to added weakness at Dalal Street. Reversal of trend by Information Technology and Technology counters mainly has exerted additional pressure in Indian equity markets as 30 share index, Sensex, losing over quarter of points, is currently trading below the 18600 psychological level, while 50 share index, Nifty, too oscillating around the neutral line, is trading sub 5650 crucial mark. However, broader indices showcasing resilience are holding their heads above water.

On the global front, Asian stocks are trading somber since early deals after global credit rating agency Standard & Poor's on Wednesday cut Spain's credit rating by two notches to just one level above speculative or junk grade with a negative outlook, citing mounting risks to the country's public finances. While European shares, with no surprise, have got off to a pessimistic start.

Closer home, prominent losers on BSE sectoral chart are Auto, FMCG and Consumer Durables, while, on the other hand, Realty, Power and PSU counters are limiting further downside of bourses. Additionally,  the news that Cabinet has given approval to direct urea subsidy transfer, which was pending for long time, sent fertiliser stocks soaring more than 5 percent. Chambal Fertiliser and Rashtriya Chemical Fertiliser all have shot up 5-6%.

The BSE Sensex is currently trading at 18598.75 down by 32.35 points or 0.17% after trading in a range of 18670.43 and 18581.49. There were 13 stocks advancing against 17 declines on the index.

The broader indices however, were trading in green; the BSE Mid cap index was up by 0.45% and Small cap index was up by 0.25%.

The top gainers on the BSE sectoral space were, Realty up by 2.15%, Power up by 0.27%, PSU up by 0.21%, Bankex up by 0.18% and HC up by 0.17%. While, Auto down by 0.70%, FMCG up by 0.61%, CD down by 0.38%, Oil & Gas down by 0.22% and  IT down by 0.15% were top losers on the sectoral space.

The top gainers on the Sensex were Bharti Airtel up by 0.99%, Tata Power up by 0.90%, BHEL up by 0.82%, Coal India up by 0.79% and HDFC Bank up by 0.63%. On the other hand, Maruti Suzuki down by 1.52%, M&M down by 1.01%, SBI down by 0.94%, ITC down by 0.89% and GAIL down by 0.80% were top losers on the Sensex. 

Meanwhile, In line with poor financial performance, the first half of the current fiscal has recorded gross direct tax collection growth rate at 5.9%, as against an annual target of 15%. The gross direct tax collection during the first six months of 2012-13 is about Rs 2.7 lakh crore, while previous year same period it was Rs 2.6 lakh crore.

Though the net direct tax collections rose by 16.32% to Rs 2, 26,603 crore during the April-September of the current financial year, compared with Rs 1, 94,812 crore during the same period in 2011-12, while the corporate tax collection during the period has grown to 1.6% at Rs 1.8 lakh crore, from previous year’s Rs 1.6 lakh crore for the same period.

The personal income tax collection increased by 14.9% at Rs 93,451 crore in the first half of the fiscal, same period last year it was Rs 81,353 crore. And wealth tax collection also peaked by 53.9% at Rs 474 crore, against Rs 308 crore in same period last year.

However, Securities Transaction Tax (STT) collection fell by 17.03% to Rs 2, 076 crore from Rs 2, 502 crore. The centre has expressed hopes that the economic activity will gear up in the next half of 2012-13.

The S&P CNX Nifty is currently trading at 5,644.80, down by 7.35 points or 0.13% after trading in a range of 5,666.55 and 5,636.95. There were 26 stocks advancing against 24 declines on the index.

The top gainers of the Nifty were DLF up by 1.43%, Semens up by 1.21%, Bharti Airtel up by 1.03%, BHEL up by 1.00% and BPCL up by 0.92%. While, Maruti down by 1.56%, ITC down by 1.05%, Lupin down by 1.04%, Gail down by 0.97% and M&M down by 0.92% were top losers on the index

All the Asian equity indices were trading in the red; Straits Times was down by 0.29%, Kospi Composite was down by 0.78%, Nikkei 225 was down by 0.58%, Jakarta Composite down by 0.26%, Shanghai Composite was down by 0.83%, Taiwan Weighted was down by 1.85%, KLSE Composite was down by 0.29% and Hang Seng down by 0.02%.

European markets too got a subdued start, with CAC 40 declining 0.10%, DAX losing 0.12% and FTSE 100 managing to entice gains of 0.07%.