Benchmarks trim some early losses; somberness prevails at D-street

Frontline equity indices trimming morning losses have recovered part of their lost ground, but the somberness continues to prevail at D-street, in-line with regional counterparts which are trading lower mostly on account of an unexpected slowdown in US manufacturing data, which has sapped the risk appetite of investors across the globe. However, bargain buying which has emerged at lower levels has brought some recovery for Indian equity markets. Barometer 30 share index, Sensex, trading a little below its neutral line, is hovering below18850 mark, likewise, 50 share index, Nifty, trading subdued too, is oscillating sub 5700 mark. Broader indices like yesterday are outperforming frontline indices and are trading with gains of around half a percent each.

Sectorally, Realty, Auto and Fast Moving Consumer Goods, are endorsing the underlying weakness of the bourses, while Capital Goods, Health Care and Consumer Durable space are witnessing good amount of traction. Shares of sugar manufacturers too are trading sweet since morning trades on hopes that the government may soon remove some curbs on the tightly controlled sector. Bajaj Hindustan, Shree Renuka Sugars, Balrampur Chini Mills and Dhampur Sugar Mills have all rallied in the range of 1-3%. Additionally, PSU OMCs recouping all losses are trading in green ever after cuting petrol prices by a rupee from Tuesday, given that global prices of the fuel have declined and the rupee has marginally strengthened against the dollar.

On the flip side, Auto index is in a swathe of red with most of the stocks—both two wheeler and four-wheeler manufacturers—coming under heavy selling pressure in the wake of general lacklustre performance of the auto industry during March. Bajaj Auto, which announced an 11 per cent drop in total sales during March was the biggest loser among vehicle manufacturers. Hero MotoCorp, that reported a similar drop in sales, is also close to its 52-week low. The market breadth was favoring positive trend; there were 1243 shares on the gaining side against 776 shares on the losing side while 104 shares remain unchanged.

The BSE Sensex is currently trading at 18848.67, down by 16.08 points or 0.09% after trading in a range of 18885.87 and 18826.53. There were 17 stocks advancing against 13 declines on the index.

The broader indices were trading in green; the BSE Mid cap and Small cap index were trading up by 0.46% and 0.80% respectively.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.99%, Health Care up by 0.91%, Consumer Durables up by 0.83%, Oil & Gas up by 0.67% and Metal up by 0.64%, while Realty down by 0.77%, Auto down by 0.55%, FMCG down by 0.38%, Bankex down by 0.30% and Teck down by 0.21% were the top losers on the BSE. 

The top gainers on the Sensex were Maruti Suzuki up by 1.62%, Wipro up by 1.54%, Sun Pharma up by 1.53%, L&T up by 1.09% and Tata Steelup by 1.05%.  On the flip side, Bajaj Auto was down by 1.79%, Tata Motors was down by 1.41%, HDFC was down by 0.82%, ICICI Bank was down by 0.77% and Hero MotoCorp was down by 0.69% were the top losers on the Sensex.

Meanwhile, Indian oil marketing companies, in line with the fall in international rates, have slashed the price of non-subsidized cooking gas by Rs 3 per cylinder on April 01. Pursuant to which, after the exhaustion of enhanced quota of 9 subsidized bottles in a year, a 14.2-kg LPG cylinder will cost Rs 901.50.  Last year in September, the government had fixed a quota of 6 subsidized LPG cylinders per household in a year, which was later increased to 9 cylinders in January. Any requirement over and above this entitlement has to be purchased at market price.

From January 18, the rate for non-subsidized gas was hiked by Rs 46.50 per 14.2-kg cylinder to Rs 942 in Delhi, soon after the decision to raise the supply of LPG at subsidized rate to 9 cylinders per household in a year. Further, with oil prices easing, rates were cut to Rs 904.50 from March 1 and now they been further reduced to Rs 901.50.

In Mumbai, every non-subsidized LPG cylinder will cost Rs 912 as against Rs 919.50 till last month. In Kolkata, prices have been cut by Rs 6.50 to Rs 926.50 while in Chennai prices have been reduced from Rs 898 to 891.50.

Earlier, the oil PSUs had hiked price of non-subsidized LPG by Rs 26.50 per cylinder from November 1, immediately after the September decision, but had to roll it back within hours as the government did not want to compound the repercussion it was already facing for limiting supply of subsidized LPG to just six cylinders per household in a year.

The CNX Nifty is currently trading at 5,694.20 down by 10.20 points or 0.18% after trading in a range of 5,710.15 and 5,687.15. There were 26 stocks advancing against 23 declines and one stock remains unchanged on the index.

The top gainers of the Nifty were Cairn up by 2.06%, Sun Pharma up by 1.77%, Maruti Suzuki up by 1.57%, Ambuja Cements up by 1.38% and IDFC up by 1.12%.

On the flip side, Bajaj-Auto down by 1.76%, UltraTech Cement down by 1.73%, DLF down by 1.40%, Tata Motors down by 1.37% and HDFC down by 1.02% were the major losers on the index.

Most of the Asian equity indices were trading in red; Shanghai Composite decreased 0.29%, Nikkei 225 dropped 0.69%, Hang Seng down by 0.04%, Straits Times down by 0.02% and KOSPI Composite was down by 1.02%.

On the flip side, Jakarta Composite up by 0.32%, KLSE Composite up by 0.40% and Taiwan Weighted was up by 0.04%.