Benchmarks slip near day’s low level in range-bound trade

In the range-bound session of trade, benchmarks have now slipped to day’s low point in absence of any buying interest ahead of the crucial factory output data and crucial earning season that would commence with Infosys reporting its Q3FY14 numbers on Friday. Nevertheless, pessimistic regional counterparts are also adding to the downside of the bourses. Both, Sensex and Nifty, down with loss of over one tenth of a percent are oscillating above the crucial 20,650 and 6,150 levels respectively. Meanwhile, broader indices although outperforming larger peers, too have now erased most of their early gains.

On the global front, Asian shares wavered on Thursday after a lackluster performance on Wall Street overnight and ahead of key US jobs report due out on Friday. Meanwhile, market reaction was muted to a slowdown in China’s annual consumer inflation in December, which decelerated to 2.5% from the previous month's 3%, more than market had expected.

Closer home, stocks from Capital Goods, Realty and Bankex counters were the top losers of the session, which were acting as the major culprits behind the downside of the markets. On the flip side, Metal, PSU and Information Technology counters, featuring into the list of top gainers, were restricting downside of the markets. Reports that RBI has fast tracked the process of new banking licences that are now expected to be handed out by March 31,2014 has mainly dragged the banking pivotal lower as this would increase the competition in the space. Additionally, stocks like Gokul Refoils & Solvent, Sanwaria Agro, JVL Agro Industries edged lower in trade on reports of CCEA likely of considering proposal to hike import duty hike on refined edible oil to 10%. On the flip side, Shares of two gold financing companies, viz Muthoot Finance and Manappuram Finance, gained after the central bank allowed NBFC to lend up to 75% of the value of gold from 60% at present. The overall market breadth on BSE is in the favour of declines which have thumped advances in the ratio of 1063:1003: while 140 shares remained unchanged.

The BSE Sensex is currently trading at 20693.65, down by 35.73 points or 0.17% after trading in a range of 20,778.13 and 20,669.80. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices too pared their early gains; the BSE Mid cap index was up by 0.16%, while Small cap index up by 0.06%.

The gaining sectoral indices on the BSE were Metal up by 0.85%, PSU up by 0.53%, IT up by 0.40%, Power up by 0.39%, Teck up by 0.34% and Oil & Gas up by 0.32%. While, Capital Goods down by 1.55%, Realty down by 1.39%, Bankex down by 0.98%, FMCG down by 0.84% and Auto down by 0.23% were the top losers on the index.  

The top gainers on the Sensex were SSLT up by 3.76%, NTPC up by 2.20%, Dr Reddy’s Lab up by 2.00%, ONGC up by 1.68% and Coal India up by 1.59%. On the flip side, Axis Bank down by 2.70%, L&T down by 2.23%, Hindalco Inds down by 1.91%, SBI down by 1.11% and  ITC down by 1.09%.

Meanwhile, the Cabinet Committee on Economic Affairs (CCEA) is expected to consider Food Ministry's proposal soon of increasing import duty on refined edible oil to 10 percent from the current 7.5 percent in order to discourage cheaper inflows of refined oils from overseas for protecting domestic refiners and farmers. Last year, Food Ministry's proposal was rejected by the CCEA amid fears of its impact on elevated inflation.

Meanwhile, the negative inflation in edible oils for a fifth straight month in November as compared with a 6.9% headline inflation during the same period, has encouraged the government for a duty hike in edible oil. On the other hand, the agriculture ministry feels the duty structure on edible oils should be such that it maintains domestic prices in accordance with the movement of prices globally.

India imports more than a half of its annual edible oil requirements. Despite, the world's largest edible oil buyer, India impose low import duties. However, major exporters such as Indonesia and Malaysia offer duty incentives on supplies of refined edible oils to promote their local refiners. In November, Indian refined oil imports shot up by 172% in a year to 2,08,076 tonnes, while crude oil purchases from overseas were up by only 20% at 719,035 tonnes.

The CNX Nifty is currently trading at 6,160.60 down by 14.00 points or 0.23% after trading in a range of 6,188.05 and 6,154.10. There were 15 stocks advancing against 34 declining on the index, while 1 share remained unchanged.

The top gainers of the Nifty were SSLT up by 4.10%, BPCL up by 2.41%, NTPC up by 2.28%, Dr Reddy’s Lab up by 2.05% and ONGC up by 1.72%. On the flip side, JP Associates down by 3.24%, Axis Bank down by 2.60%, L&T down by 2.26%, ACC down by 1.93% and Hindalco down by 1.93% were the major losers on the index.

Most of the Asian equity indices were trading in red; Shanghai Composite down by 0.62%, Nikkei 225 down by 1.50%, Hang Seng down by 0.53%, Taiwan Weighted down by 0.48%, Straits Times down by 0.07% and Seoul Composite down by 0.66%. While, KLSE Composite up by 0.02% and Jakarta Composite up by 0.19%.