Market loses momentum; slips into red

Indian benchmarks have slipped marginally into red in the early noon session, as volatility crept in the markets owing to the F&O series expiry scheduled tomorrow and benchmarks are slowly losing momentum, though the strength in Consumer Durables, IT and Technology stocks are capping the losses of the markets. The regional peers were still showing a mixed trend and barring the Japanese market all other were either ruling flat or in the red, adding pressure to the local markets. Metal stocks were especially under pressure tailing the weakness in the Chinese market where the currency tumbled the most in more than a year on speculation the central bank wants an end to the currency’s steady appreciation. Back home, despite weakness in banking stocks the NBFC stocks were showing some upmove on reports that the Jalan committee, which is scrutinizing applications for new bank licences, will submit its report by the weekend.

The BSE Sensex is currently trading at 20795.10, down by 16.34 points or 0.08% after trading in a range of 20912.54 and 20788.74. There were 9 stocks advancing against 21 declines on the index.

The broader indices too have started losing strength but were still trading in green; the BSE Mid cap index was up by 0.30%, while the Small cap index gained 0.18%.

The top gaining sectoral indices on the BSE were, Consumer Durables up by 2.20%, Teck up by 0.72%, IT up by 0.71%, Healthcare up by 0.22% and FMCG was up by 0.06%. On the other hand the top losers included Metal down by 1.01%, Power down by 0.54%, Oil & gas down by 0.36%, Bankex down by 0.36% and Capital Goods down by 0.11%.

The top gainers on the Sensex were Bajaj Auto up by 1.55%, Wipro up by 1.51%, BHEL up by 1.50%, Cipla up by 1.33% and Bharti Airtel up by 1.22%. On the flip side, Gail India down by 2.16%, NTPC down by 1.96%, Coal India down by 1.45%, tata Steel down by 1.27% and SSLT down by 1.09% were the top losers on the Sensex.

Meanwhile, keeping inflation battle at the top of agenda, the Reserve Bank of India (RBI) Governor Raghuram Rajan has asserted that the central bank's focus is to bring down inflation to boost investor confidence. Emphasizing the need for India to strengthen its fundamentals like inflation rate, the Governor has stated that if investors have a sense that inflation rate is going to come down, both domestic and international investors would be more prepared to take a bet on the rupee.

RBI had already highlighted that persistence high Inflation has been impacting the economic fundamentals particularly domestic currency. WPI inflation eased to eight-month low at 5.05% in January as compared to 6.16% in December. Meanwhile, the domestic currency has depreciated over 15% during 2013 mainly on account of high gold imports and high capital outflow. 

Regarding the prospect of new government after the May general elections, Raghuram Rajan expressed hope that a stable government after the Lok Sabha elections will continue the broad fiscal policies of the current regime and India may finally get the Goods and Services Tax (GST), an ambitious indirect tax reform measure.

The CNX Nifty is currently trading at 6,181.65, down by 4.45 points or 0.07% after trading in a range of 6,216.85 and 6,180.75. There were 20 stocks advancing against 30 decliners on the index.

The top gainers of the Nifty were Ambuja Cements up by 2.69%, IDFC up by 1.75%, Wipro up by 1.74%, Bajaj Auto up by 1.59% and Cipla was up by 1.39%. On the flip side, NMDC down by 2.55%, GAIl down by 2.53%, JP Associates down by 2.27%, NTPC down by 1.84% and Coal India down by 1.59% were the top losers on the index.

Most of the Asian equity indices were in red; Shanghai Composite shed 2.38%, Jakarta Composite was down by 0.75%.

On the other hand, Hang Seng was up by 0.09%, Nikkei 225 surged by 1.44%, Straits Times was up by 0.06%, KLSE Composite gained 0.09%, KOSPI Composite was up by 0.81% and Taiwan Weighted was up by 0.18%.