Indian equity pare losses; trade continues in red

Indian equity market pare losses but continue to trade weak in the late afternoon session on account of selling in frontline counters. The sentiments on the street were on pessimistic mood despite the wholesale price index (WPI), India's main inflation gauge, cooled down to four year low at 6.62% (Provisional) for the month of January, 2013 as compared to 7.18% for December and 7.23% during the corresponding month of the previous year. Traders were seen piling some position in IT, FMCG and Metal sectors while selling was witnessed in Capital Goods, Auto and Power sector. In the scrip specific development, PSU oil marketing companies, viz. BPCL, HPCL and IOC, were trading on a mixed note even as reports suggest of petrol and diesel prices to go higher as early as Friday. IndusInd Bank and NMDC were trading in green as both the companies would be included in the National Stock Exchange’s benchmark index Nifty from April 1. Sahara Housingfina Corporation and Sahara One Media & Entertainment were trading under pressure after SEBI ordered freezing of bank accounts and attachment of all investments and properties of the two group firms and their top executives. Kingfisher Airlines was locked in lower circuit limit after lenders stated that they would initiate recovery proceedings and the government ruled out the possibility of its licence renewal.

On the global front, majority of the Asian markets were trading in green barring Straits Times and KLSE Composite while the European markets were trading on a mixed note. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 5,950 and 19,600 levels respectively. The market breadth on BSE was negative in the ratio of 743:1922 while 116 scrips remain unchanged.

The BSE Sensex is currently trading at 19,584.76, down by 23.32 points or 0.12% after trading in a range of 19,639.83 and 19,531.52. There were 15 stocks advancing against 15 declines on the index.

The broader indices were trading in red; the BSE Mid cap index and Small cap index was trading lower by 1.08% and 1.32% respectively.

The top gaining sectoral indices on the BSE were, IT up by 0.50%, FMCG up by 0.38% and Metal up by 0.24%. While, Capital Goods down by 1.46%, Auto down by 1.34%, Power down by 1.23%, Consumer Durables down by 0.93% and Health Care down by 0.65% were the top losers on the index.

The top gainers on the Sensex were Hindustan Unilever up by 2.31%, HDFC Bank up by 1.56%, TCS up by 1.36%, Gail India up by 1.27% and ONGC up by 1.05%. On the flip side, Bharti Airtel down by 3.32%, Wipro down by 3.17%, Maruti Suzuki was down by 2.43%, Tata Motors was down by 2.41% and L&T was down by 1.81% were the top losers on the Sensex.

Meanwhile, Indian Wind Energy Association and Indian Wind Turbine Manufacturers Association have jointly approached the Appellate Tribunal for Electricity and filed petition against all 25 state electricity regulatory commissions, Central Electricity Regulatory Commission, two joint electricity regulatory commissions, and the forum of regulators. The petition is filed to make sure enforcement of the renewable purchase obligations (RPO) and to hold the regulators, who have failed to penalize those found guilty of non-compliance.

As per the petition 'despite availability of the RECs (renewable energy certificates), the state utilities failed to comply with the RPO specified under the regulations. The state commissions, instead of ensuring fulfillment of the obligations fixed, are enabling the state utilities to time and again defer compliance of the regulations'.

Further, the wind energy associations expressed concerns over the move of the state commissions to relax the targets by either permitting the entities to carry forward their obligation or relinquish the liability altogether for a number of years and also added that the state commissions had even failed to conduct audits of the utilities' performance. Moreover, wind energy association, in its petition said that the state utilities have not even created a fund to deposit the amounts utilities have to pay in the event of a shortfall in RPO, which is to be used for development of renewable energy resources.

The S&P CNX Nifty is currently trading at 5,919.80, down by 13.15 points or 0.22% after trading in a range of 5,940.20 and 5,901.25. There were 22 stocks advancing against 28 declines on the index.

The top gainers of the Nifty were HUL up by 2.04%, HDFC Bank up by 1.66%, ONGC up by 1.45%, Grasim Industries up by 1.25% and Gail India up 1.20%.

On the flip side, PowerGrid down by 5.32%, Siemens down by 3.71%, Bharti Airtel down by 3.50%, Wipro down by 3.10% and Ranbaxy down by 2.70% were the major losers on the index.

Most of the Asian equity indices were trading in the green; Hang Seng surged 0.85%, Jakarta Composite rose 0.31%, KOSPI Composite was up by 0.18% and Nikkei 225 increased 0.50%. On the flip side, Straits Times was down by 0.05% and KLSE Composite lost 0.01%. China and Taiwan markets remained closed for the trade today.

The European markets were trading on a mixed note; France’s CAC 40 added 0.13%, Germany’s DAX lost 0.11% and United Kingdom’s FTSE 100 edged lower by 0.13%.