Markets trade lower on weak global cues

Pressurized by weak global cues, Indian equity benchmarks made a negative opening with frontline gauges trading lower by over quarter a percent. The US markets snapped the week and month lower on getting mixed set of economic numbers, and on concerns after the Fed extended its stimulus cut. Asian markets too were trading lower at this point of time, led by sharp fall in Japanese markets, with investors indulging in heavy selling almost across the board on weak global cues and a stronger yen. Slump in Chinese factory growth too hurt investors’ confidence.

Back home, sentiments also remained down-beat on report that fiscal deficit in the first three quarters of the current fiscal year ending March touched 95.2% of the budgeted target for the whole year at Rs 5.16 lakh crore as compared with 78.8% a year ago. Market participants also remained on the sidelines ahead of the release of HSBC India Manufacturing PMI data scheduled to be announced later in the day. Some pessimism came in after CII survey showed that India’s economy is likely to grow in the range of 4.5 to 5% during the second half of the current fiscal.

The market sentiment also affected adversely by data showing that foreign institutional investors (FIIs) sold shares worth a net Rs 652.97 crore on January 31, 2014, as per provisional data from the stock exchanges. Back home, on the sectoral front, healthcare witnessed the maximum gain in trade followed by consumer durables and fast moving consumer goods, while metal, realty and software the top losers on the BSE sectoral space. The broader indices, however, were outperforming benchmarks, while the market breadth on the BSE was positive; there were 628 shares on the gaining side against 787 shares on the losing side while 84 shares remain unchanged.

The BSE Sensex opened at 20479.03; about 34 points lower compared to its previous closing of 20513.85, and touched a high and a low of 20480.35 and 20391.96 respectively.  The index is currently trading at 20458.91, down by 54.94 points or 0.27%. There were 13 stocks advancing against 17 declines on the index.

The overall market breadth has made a strong start with 52.5052% stocks advancing against 41.89% declines. The broader indices were trading in red; the BSE Mid cap up by 0.15% and Small cap indices trading up by 0.51%.

The top gaining sectoral indices on the BSE were, Healthcare up by 1.38%, Consumer Durables up by 1.05% and FMCG up by 0.07%, while Metal down by 0.82%, Realty down by 0.66%, PSU down by 0.52%, Teck down by 0.47% and IT down by 0.44% were the top losers on the sectoral index. 

The top gainers on the Sensex were Dr Reddys Lab up by 1.73%, Sun Pharma up by 1.72%, Hero MotoCorp up by 1.49%, Tata Power up by 1.35% and Bajaj Auto up by 1.17%. On the flip side, Mahindra & Mahindra was down by 2.02%, Bharti Airtel was down by 1.70%, Tata Motors was down by 1.54%, Hindalco Industries was down by 1.23% and Tata Steel was down by 1.14% were the top losers on the Sensex.

Meanwhile, In a bad news for the economy, fiscal deficit in the first three quarters of the current fiscal year ending March touched 95.2% of the budgeted target for the whole year at Rs 5.16 lakh crore as compared with 78.8% a year ago, suggesting the ordeal that the economy would have to undergo for achieving its fiscal deficit target of 4.8% of gross domestic product, highest among BRICS nations of Brazil, Russia, India, China and South Africa.

Net tax receipts were at Rs 5.18 lakh crore in the first nine months of the current fiscal year to March 2014, while total expenditure was Rs 11.64 lakh crore. Meanwhile, factory gate duties were down 6.9 per cent at Rs 1.02 lakh crore during April-December from the year-earlier period, while customs tax receipts rose 4.3 per cent to Rs 1.24 lakh crore, much lower than the 13.6 per cent annual growth target.

Unperturbed by the rise in the fiscal deficit, Finance Minister P Chidambaram had exuded confidence that it would remain within the target of 4.8 percent of GDP in the current financial year. He had then averred that government finances will improve in December and the fiscal deficit will decline.

The CNX Nifty opened at 6,058.80; about 30 points lower as compared to its previous closing of 6,089.50, and has touched a high and a low of 6,074.65 and 6,052.20 respectively. The index is currently trading at 6,073.50, down by 16.00 points or 0.26%. There were 23 stocks advancing against 26 declines and one stock remains unchanged on the index.

The top gainers of the Nifty were Lupin up by 1.90%, Dr. Reddy's Laboratories up by 1.70%, Sun Pharmaceuticals Industries up by 1.53%, Hero MotoCorp up by 1.46% and Tata Power up by 1.35%. On the flip side, M&M down by 2.15%, Bharti Airtel down by 1.76%, NMDC down by 1.10%, Tata Steel down by 1.04% and ICICI Bank down by 1.03% were the major losers on the index.

The Asian equity indices were trading in red; Jakarta Composite dropped 25.89 points or 0.59% to 4,392.87, Nikkei 225 declined 186.11 points or 1.25% to 14,728.42, Straits Times decreased 30.97 points or 1.02% to 2,996.25 and Seoul Composite was down by 21.53 points or 1.11% to 1,919.62.