Benchmarks extend losses; Metal, Auto drags

Indian benchmark- Sensex fell over 125 points in the late morning session on selling by funds amid a weak trend in the Asian region. On the global front all the Asian equity indices were trading in the red at this point of time after Republicans scrapped a vote on putting in place a back-up plan if talks on averting the US fiscal cliff end in failure. Back home, the traders were seen piling up position in IT, and TECk, while selling was seen in Metal, Auto and Realty sector. Gulf Oil Corporation (GOCL) jumped after the company stated that through a step down subsidiary structure in the United Kingdom and USA, it has completed acquisition of 100% stake in Houghton International Inc for $1.045 billion. Cairn India was trading under pressure as US crude oil futures declined the most in more than two weeks on concern US lawmakers may fail to avert spending cuts and tax increases that threaten the world's biggest economy. Adani Enterprises gained after its promoters set the floor price for a share sale at Rs. 282 per share. Shares in Kingfisher Airlines, rebounded after two straight days of losses on Friday, on reports that the grounded carrier has applied for renewal of licence.

The NSE Nifty and BSE Sensex were managing to hold their psychological 5,850 and 19300 levels respectively. The market breadth on BSE was negative, in the ratio of 777:1306.

The BSE Sensex is currently trading at 19328.12 down by 125.80 points or 0.65% after trading in a range of 19394.55 and 19290.50. There were 5 stocks advancing against 25 declines on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.53% and Small cap index was down by 0.45%. The top gaining sectoral indices on the BSE were, IT up by 0.57% and TECk up by 0.24%. While, Metal down by 1.02%, Auto down by 0.96%, Realty down by 0.89%,%, PSU down by 0.85%, and Oil and Gas down by 0.81% were the few losers on the index.

The top gainers on the Sensex were Cipla up by 1.00%, Infosys up by 0.88%, TCS up by 0.53% and Hindustan Unilever up by 0.48%.

On the flip side, Coal India was down by 1.70%, Jindal Steel was down by 1.67%, ITC was down by 1.62%, Tata Motors was down by 1.60%, and HDFC was down by 1.38% and were the top losers on the Sensex.

Meanwhile, as per the Planning Commission Deputy Chairman Montek Singh Ahluwalia, impact of reforms will be felt only in the second half of the fiscal year when the expansion rate will show some improvement. On asked whether the government was doing enough to support growth in the economy, Ahluwalia said, government is doing a lot push growth but efforts are likely to be felt in the second half.

To drive growth and boost investment, in the month of September and afterwards, the government announced a host of measures, including allowing FDI up to 51% in multi-brand retail, opening up of the domestic aviation sector for foreign carriers along with that considered and passed several crucial bills in the winter session of parliament.

Ahluwalia said as per the projection of the finance ministry the growth rate in the second half of the current fiscal may be near about 6%, up from the first half of 5.4%. Earlier this week, the government in its Mid-Year Economic Analysis presented in the Parliament, lowered the growth projection for 2012-13 to 5.7-5.9% from 7.6% estimated earlier - the lowest in a decade. The economic growth rate during 2011-12 had slipped to the nine-year low of 6.5% because of slowing demand both globally and locally. 

The S&P CNX Nifty is currently trading at 5,874.00 down by 42.40 points or 0.72% after trading in a range of 5,888.00 and 5,860.70. There were 6 stocks advancing against 44 declines on the index.

The top gainers of the Nifty were Cipla up by 1.01%, Infosys up by 0.91%, Axis Bank up by 0.83%, TCS up by 0.35% and DLF up by 0.18%.

On the flip side, Cairn down by 2.70%, IDFC down by 2.22%, JP Associates down by 1.78%, Coal India down by 1.65% and Jindal Steel down by 1.64%, were the major losers on the index.

All the Asian equity indices were trading in red; Shanghai Composite declined 11.21 points or 0.52% to 2,157.15, Hang Seng dropped 171.49 points or 0.76% to 22,488.29, Jakarta Composite slipped 1.56 points or 0.04%  to 4,253.26, KLSE Composite contracted 7.23 points or 0.43% to 1,663.37, Nikkei 225 dipped 82.30 points or 0.82% to 9,953.21, KOSPI Composite crumbled 16.20 points or 0.83% to 1,983.30, Taiwan Weighted slumped 67.49 points or 0.89% to 7,528.24 and Straits Times was down by 11.74 points or 0.36% to 3,164.38.