Domestic benchmarks continue sluggish trade in noon deals

Key domestic benchmarks continued to trade in the red terrain in noon deals with frontline indices hitting 26-week low, as concern about foreign funds selling continued to weigh after overseas investors sold shares worth net Rs 326 crore on April 4, 2013 and Rs 368 crore on April 3, 2013. Selling in banking stocks too dampened the sentiments as Indian banks’ advances grew at a slower pace in 2012-13 compared with a year earlier, falling short of the central bank’s projection, hurt by lower demand for credit from companies in a slowing economy. Bucking the trend, sugar stocks continue to hog the limelight after the government yesterday partially decontrolled the Rs 80,000-crore sugar sector by giving freedom to millers to sell in the open market and removed their obligation to supply the sweetener at subsidised rates to ration shops.

Globally, Asian markets were trading mostly in the red as investors remained worried after North Korea blocked access to its Kaesong joint industrial zone with South Korea for the second day running. However, Japanese Nikkei managed to trade with the gain of over one and a half percent buoyed by the Bank of Japan’s announcement of massive stimulus to revive the world’s third-largest economy. Back home, on the sectoral front, oil and gas witnessed the maximum gain in trade followed by public sector undertaking and realty, while fast moving consumer goods, power and consumer durables remained the top losers on the BSE. The broader indices too, lost their momentum and turned flat, while the market breadth on the BSE was in negative; there were 1,115 shares on the gaining side against 1,201 shares on the losing side while 135 shares remain unchanged.

The BSE Sensex is currently trading at 18434.33, down by 75.37 points or 0.41% after trading in a range of 18518.16 and 18389.29. There were 17 stocks advancing against 13 declines on the index.

The broader indices were trading in red; the BSE Mid cap index was flat and Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.12%, PSU up by 0.25%, Realty up by 0.22%, Health Care up by 0.17% and Metal up by 0.16% while, FMCG down by 1.42%, Power down by 0.73%, Consumer Durables down by 0.58%, Bankex down by 0.39% and Capital Goods down by 0.29% were the top losers on the BSE.

The top gainers on the Sensex were  Maruti Suzuki up by 5.24%, Gail India up by 2.58%, Bajaj Auto up by 1.75%, Bharti Airtel up by 1.64% and ONGC up by 1.64%. On the flip side, HDFC down by 3.53%, NTPC down by 3.01%, ITC down by 2.35%, Mahindra & Mahindra down by 1.49% and ICICI Bank down by 1.32% were the top losers on the Sensex.

Meanwhile, the Direct Benefit Transfer (DBT) scheme is likely to be implemented in 78 more districts in the next phase beginning July 1, as per the Prime Minister’s Office statement. The plan would contain three pension schemes managed by the Ministry of Rural Development for old age persons, widows and the disabled, while, post offices will also be included from October 1.

The Ministry of Home Affairs and the Registrar General of India (RGI) will work towards accelerating biometric collection in select districts in the National Population Register (NPR) states so that coverage of 70-80 per cent is achieved by June and DBT could be rolled out from July 1 successfully.

The government launched its ambitious DBT programme on January 1 this year. The welfare plan was initially rolled out in 20 districts and covered seven schemes, mostly scholarships, and is likely to have benefited more than 2 lakh people. A total of 43 districts in 16 states have been identified for the first round of DBT that will cover 26 social welfare schemes.    

The primary aim of this Direct Benefit Transfer program is to bring transparency and terminate corruption from distribution of funds sponsored by the government. In DBT, benefit or subsidy will be directly transferred to the citizens living below poverty line and curbing the subsidy to those who don't require it.

The CNX Nifty is currently trading at 5,545.10, down by 29.65 points or 0.53% after trading in a range of 5,577.30 and 5,535.40. There were 23 stocks advancing against 27 declines on the index.

The top gainers of the Nifty were Maruti up by 5.28%, Gail up by 2.48%, HCL Tech up by2.18%, BPCL up by 1.88% and Bharti Airtel were up by 1.70%.

On the flip side, HDFC down by 3.65%, NTPC down by 3.35%, NMDC down by 3.14%, ITC down by 2.37% and IDFC down by 2.16% were the major losers on the index.

Most of the Asian equity indices were trading in red; Hang Seng tumbled 2.42%, KLSE Composite declined 0.30%, Jakarta Composite down by 0.02%, Straits Times slipped 0.24% and KOSPI Composite was down by 1.64%.

On the flip side, Nikkei 225 was up by 1.58% was the only positive equity indices in Asian market.

Markets in China and Taiwan remained shut for the trade today.