Weak trend continues to prevail at D-street; FMCG marginally in green

Weak trend continues to prevail at D-street, given that investors have no incentive for investing their funds into risky asset class such as equities amidst mixed regional counterparts. Globally risk-averse environment ahead of crucial G-20 meeting in Moscow, has also kept traders on the sidelines. During the meeting over the next two days, leaders are likely to discuss the recent move by some countries (which are strong in export) to de-value their currencies artificially and the impact it could have on the world economy.

Closer home, Fast Moving Consumer Goods counter was the only one showcasing resilience, while rest all the sectoral indices were witnessing profit-booking, languishing  in red. Stocks from Oil & Gas, Realty and Consumer Durables space were slipping fast and deeper in red, emerging as the worst performers of the session. Meanwhile, PSU OMC’s failed to show any traction even after reports suggested fuel price hike over the weekend. On the flip side, sugar stocks, bucking the trend were trading sweet on reports of decision on partial sugar decontrol to be taken within 15 days. The overall market breadth on BSE is in the favour of declines which have outnumbered advances in the ratio of 1733:807, while 115 shares remain unchanged.

The BSE Sensex is currently trading at 19,440.10, down by 57.08 points or 0.29% after trading in a range of 19487.24 and 19399.01. There were 9 stocks advancing against 21 declines on the index.

The broader indices were trading in red; the BSE Mid cap and Small cap indices were trading lower by 0.38% and 1.00% respectively.

The top losers on sectoral front on the BSE were, Oil & Gas down by 0.98%, Realty down by 0.93%, Consumer Durables down by 0.70%, IT down by 0.70% and TECk down by 0.65% while, Fast Moving Consumer Goods (FMCG) up marginally by 0.01% remained the lone gainer on the index.

The top gainers on the Sensex were NTPC up by 1.07%, Tata Power up by 0.95%, Sun Pharma up by 0.80%, Sterlite Industries up by 0.71% and HDFC Bank up by 0.31%.

On the flip side, Dr Reddys Lab down by 2.22%, Cipla down by 1.41%, Reliance Industries down by 1.41%, Bajaj Auto down by 1.40% and Tata Steel down by 1.39% were the top losers on the Sensex.

Meanwhile, to discuss various environmental issues related to coal mining projects, an inter-ministerial panel, headed by Agriculture Minister Sharad Pawar, is expected to be held on February 18. The group of ministers (GoM) meeting will discuss the environmental and developmental issues, which are hurting overall coal production in the country and adversely impacting the domestic power sector.

The delays in acquiring land, obtaining necessary approvals as well as equipment bottlenecks are constraining the pace of power capacity addition agenda, which aims to add 88,000 MW power capacities by 2017. The panel would also deliberate the legality of existing forest clearance norms and procedures. The relocation of NTPC's proposed 1,980-MW North Karanpura project in Jharkhand to another site is also expected to be taken up by the panel.

Earlier, in January, the Environment Ministry has turned down the Coal Ministry's request for grant of 'in-principle' clearances to mines identified for auction, raising doubts over proposed competitive bidding for captive blocks. While, amid concerns over the environmental degradation, the Coal Ministry on January 8 announced modified guidelines for mines closure with stricter provisions that provide for reclamation work in a phased manner.

The 12-member panel includes Finance Minister P Chidambaram, Power Minister Jyotiraditya Scindia, Coal Minister Sriprakash Jaiswal and Environment Minister Jayanthi Natarajan and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

The S&P CNX Nifty is currently trading at 5,870.65 down by 26.30 points or 0.45% after trading in a range of 5,889.45 and 5,862.80. There were 10 stocks advancing against 40 declines on the index.

The top gainers of the Nifty were NTPC up by 1.07%, Tata Power up by 1.05%, Sun Pharmaceuticals up by 0.78%, Sesa Goa up by 0.74% and Kotak Bank up by 0.54%.

On the flip side, DLF down by 2.78%, BPCL down by 2.76%, Cairn down by 2.58%, Dr Reddy's Laboratories down by 2.03% and HCL Tech down by 1.87%, were the major losers on the index.

Asian equity indices were trading mixed; KLSE Composite dipped 0.04%, Nikkei 225 tumbled 1.18% and Straits Times was down by 0.28%.

On the flip side, Hang Seng rose 0.06%, Jakarta Composite rose 0.50% and KOSPI Composite was up by 0.08%. Markets in China and Taiwan remained shut for the Lunar New Year holiday.