Benchmarks languish at day’s low point; Nifty oscillates sub 6,150 level

After entering the red zone on bout of selling pressure in late morning deals, benchmark equity indices are now languishing at day’s low point on account of negative start of European markets. Global risk-off sentiment is mainly on account of uncertainty about whether flood of liquidity will continue or should continue in the way that it has been and also ahead of Ben Bernanke’s speech on Wednesday night. With Asian pacific shares too sending out mixed signals, benchmark 30-share index, Sensex, is trading lower with loss of close to 50 points, below the psychological 20,200 level. While, 50-share index, Nifty, shedding close to quarter points, were oscillating sub 6,150 level. Meanwhile, broader indices too were trading with a cut of quarter of a percent. Sectorally, Information Technology and Technology counters were the sole gainers. While, stocks from Realty, Auto and power counters were the only weakest link of trade. The overall market breadth on BSE is in favour of declines, which outnumbered advances in the ratio of 1187:823; while 153 shares remain unchanged.

The BSE Sensex is currently trading at 20,172.09, down by 51.89 points or 0.26% after trading in a range of 20,288.76 and 20,141.32. There were 12 stocks advancing against 18 declines on the index.

The broader indices continued to reel under pressure; the BSE Mid cap and Small cap index were trading down by 0.25% and 0.21% respectively.

The top gaining sectoral indices on the BSE were, IT up by 0.72%, Teck up by 0.49%, while Realty down by 1.48%, Auto down by 1.42%, Power down by 0.86%, FMCG down by 0.68%, Capital Goods down by 0.46% were the  losers on the on the BSE.

The top gainers on the Sensex were Coal India up by 2.08%, BHEL up by 1.44%, Hindalco up by 1.05%, TCS up by 0.97% and ICICI Bank up by 0.86%.

On the flip side, NTPC down by 2.77%, Tata Motors down by 2.55%, Maruti Suzuki down by 2.00%, Mahindra & Mahindra down by 1.95% and Sterlite Industries down by 1.49% were the top losers on the Sensex.

Meanwhile, the government is planning to allow global retailers such as Walmart and Tesco to set up warehouses, cold storages and source products from small and medium enterprises (SME) in states which have not permitted FDI in the multi-brand retail sector. As per the proposal, no state will stop any foreign player to procure goods or do business with SMEs.

Global retailer players have sought clarifications from the Department of Industrial Policy and Promotion (DIPP) on whether they could set up warehouses in states which are against the Centre’s retail FDI policy.  As per the government FDI policy, 50 per cent of first tranche of the mandatory minimum $100 million FDI would only have to be invested in the back-end infrastructure and not in buying land, existing building or rent. Further a foreign retailer must source 30 per cent of the items that it sells in India from small industries.

However, certain issues were raised by the foreign retailers regarding these provisions. Meanwhile, the Department of Industry Policy and Promotion (DIPP) would soon issue clarifications on issues raised by the retailers. The government has permitted 51 per cent FDI in multi-brand retail. 

The CNX Nifty is currently trading at 6,134.05, down by 22.85 points or 0.37% after trading in a range of 6,173.10 and 6,124.70. There were 15 stocks advancing against 35 declines on the index.

The top gainers of the Nifty were Coal India up by 2.01%, HCL Technologies up by 1.46%, BHEL up by 1.43%, TCS up by 1.37% and Sun Pharma up by 0.95%.

On the flip side, UltraTech Cement down by 3.22%, JP Associate down by 3.19%, NTPC down by 3.04%, Reliance Infra down by 2.47% and Tata Motors down by 2.38% were the major losers on the index.

Most of the Asian equity indices were trading mixed; Hang Seng declined 0.35%, Jakarta Composite dropped 0.62%, Straits Times contracted 0.48% and KOSPI Composite decreased 0.07%.

On the flip side, Shanghai Composite up by 0.06%, Nikkei 225 up by 0.13%, KLSE Composite was up 0.51% and Taiwan Weighted up by 0.07%.

European markets got off to cautious start; with CAC 40 declining by 0.21%, FTSE100 shedding 0.12% and DAX dropping 0.41%.