Benchmarks scale back some losses; trend continues to remain downbeat

Benchmark equity indices, although off lows, are trading awfully in red, with no positive triggers in sight that could reverse the prevailing trend at D-street. Negative global set-up along with scaled back hopes of rate cut, have proved to be lethal for Indian equity markets, which prolonging previous sessions somber run are trading down beat. Although, benchmarks have scaled back some of their losses, the mood continues to remain glum ahead of the February inflation data, wherein a reading above 6.5% or less is seen cementing rate cut hopes for March 19. Benchmark 30 share index- Sensex- recouping close to 20-30 points, is trading above 19,450 level, likewise, 50 share index-Nifty-is attempting to near 5,900 mark. Meanwhile in broader space, the Mid-cap index, signaling a deeper damage-game continued to lurk in the corner.

On the global front, Asian shares fell on Wednesday on investor concerns that the recent rally in global equities was running out of steam, while sterling remained vulnerable after weak UK data fed fears of a triple-dip recession. Closer home, amidst ferocious selling pressure, only Fast Moving Consumer Goods and Oil & Gas sector stocks were showcasing some resilience, rest all the sectoral indices are down and out in red. Topping the selling list, are stocks from Consumer Durables, Information Technology and Auto counters. The market breadth favoring negative trend; there were 892 shares on the gaining side against 1,525 shares on the losing side while 116 shares remain unchanged.

The BSE Sensex is currently trading at 19,470.31, down by 94.61 points or 0.48% after trading in a range of 19,511.97and 19,425.86. There were 11 stocks advancing against 19 declines on the index.

The broader indices were trading in red; the BSE Mid cap and Small cap indices were trading lower by 0.49% and 0.67% respectively.

The top losing sectoral indices on the BSE, Consumer Durables down by 1.32%, IT down by 1.18%, Auto down by 1.05%, Teck down by 0.96% and Bankex down by 0.88%, while FMCG up by 0.41% and Oil & Gas up by 0.02% were the only gainer on the BSE.

The top gainers on the Sensex were Sun Pharma up by 0.98%, RIL up by 0.86%, Sterlite Industries up by 0.66%, Hindustan Unilever up by 0.65% and ITC up by 0.65%.

On the flip side, Hindalco Industries down by 2.91%, Infosys down by 1.91%, Tata Motors down by 1.82%, ICICI Bank down by 1.81% and Jindal Steel down by 1.64%, were the top losers on the Sensex.

Meanwhile, satisfied over growth in exports and industrial output, Union Commerce and Industry Minister Anand Sharma said the recently published January IIP figure is encouraging, but we have to do more, both on exports and industrial manufacturing.

Regarding the external trade, Sharma said that as we did two rounds of consultations with the CII and FICCI, now we will chair a high-level Board of Trade (BOT) meet on March 22 to review export performance, due to uncertain economic conditions in Western markets. After that we will start working to give the final shape to this year’s foreign trade policy (FTP).

By adding further, he said that the objective of the foreign trade policy is to boost exports and reduce the widening trade deficit, which has reached $182.1 billion in the 11-month period of the fiscal. Exports of merchandise increased for second month in row in February by an annual 4.23 percent to $26.26 billion after decreasing for eight months.

Meanwhile, a series of measures recently taken by the government to boost the economic growth have added to improve the investors’ sentiments. India's industrial output expanded for the first time in three months in January, an early sign that Asia's third-largest economy may have turned a corner after contracting for eight months in a row. India’s economy has been constrained by weak capital investment and flagging consumer demand.

The CNX Nifty is currently trading at 5,880.25 down by 33.85 points or 0.57% after trading in a range of 5,893.85 and 5,869.05. There were 14 stocks advancing against 36 declines on the index.

The top gainers of the Nifty were Asian Paints up by 1.11%, Bharti Airtel up by 0.94%, Sun Pharma up by 0.92%, Sesa Goa up by 0.88% and Reliance Industries up by 0.80%.

On the flip side, Hindalco down by 2.87%, Infosys down by 2.07%, Jindal Steel down by 2.01%, Axis Bank down by 2.00% and ICICI Bank down by 1.90%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite tumbled 0.84%, Hang Seng declined 0.74%, Jakarta Composite slipped 0.24%, KLSE Composite dropped 0.63%, Nikkei 225 dipped 0.61% and Straits Times contracted 0.63%.

On the flip side, KOSPI Composite increased by 0.32% and Taiwan Weighted was up by 0.01%.