Benchmarks remain choppy in early trade on weak global cues

After witnessing a sharp rise in previous session, the Indian equity markets have made a negative start on fresh selling triggered by a weakening trend on other Asian bourses following an overnight fall on Wall Street as European debt problems continued to batter the investor sentiment. Global markets were down as Federal Reserve observed that strains in global financial markets continue to pose significant downside risks to the economic outlook. On the domestic turf, traders eyeing the monthly inflation numbers for November. Street is expecting the numbers to ease partly due to decline in prices of food articles, non-food articles and minerals, and partly due to a high statistical base. The sentiment also dampened after the rupee fell to a record low versus the dollar for the third day on Wednesday as a slowing domestic economy and Europe’s debt crisis hit risk appetite and triggered outflows. The partially convertible rupee was at an all-time low of 53.71/74, taking losses to 18.4 per cent from its year-high in July. Consumer durables, power, metal and auto stocks led the fall while, capital goods, realty and fast moving consumer goods stocks were providing some strength to the Sensex. The market breadth on the BSE was negative; there were 631 shares on the gaining side against 670 shares on the losing side while 65 shares remained unchanged.

The BSE Sensex opened at 15,963.75; about 40 points lower compared to its previous closing of 16,002.51, and has touched a high and a low of 15,991.73 and 15,924.21 respectively.

The index is currently trading at 15,935.70, down by 66.81 points or 0.42%. There were 9 stocks advancing against 21 declines on the index.

The overall market breadth has made a negative start with 46.19% stocks advancing against 49.05% declines. The broader indices were trading flat; the BSE Mid cap index was down by 0.04% while, small cap index was up by 0.01%.

The few gaining sectoral indices on the BSE were, CG up by 0.61%, Realty up by 0.23%, FMCG up by 0.22% and HC was up by 0.12%. While, CD down by 1.26%, Power down by 0.81%, Metal down by 0.68%, Auto down by 0.58% and Bankex down by 0.55% were the top losers on the index.

The top gainers on the Sensex were Sun Pharma up by 1.46%, L&T up by 1.14%, HUL up by 0.76%, Jaiprakash Associates up by 0.66% and Cipla up by 0.58%.

On the flip side, NTPC was down by 1.92%, Hindalco was down by 1.66%, M&M was down by 1.19%, ICICI Bank was down by 1.10% and HDFC was down by 0.95% were the top losers on the Sensex.

Meanwhile, speaking at the parliament Finance Ministry Pranab Mukherjee said that the government will make efforts to build broad consensus on reforms as the economy has resilience to overcome the problem. Finance Ministry said questions have been raised whether the economy is going to be derailed in the wake of IIP figures turning negative and overall growth slowing. 'We have the capacity and resilience to overcome the crisis”.

Presently Indian economy is going through tough time, in October 2011, the IIP contracted by -5.1% and in April-October 2011 stood at 3.5% compared to 8.7% in the April-October 2010. Economic growth in the second quarter of 2011-12 stood at 6.9% compared to 8.9% in the same period of last year. As result in the first half of the current financial year, Indian economy grew by 7.3% compared to 8.85% achieved in the same period of last year.

The Finance Minister said that for the economy to recover, it has to be demonstrated that Parliament and other institutions can function without disturbance. He also expressed disappointment over frequent disruptions in Parliament. 'Let us not institutionalise instability in Parliament', he said.

Against the backdrop of difficult economic situation, political parties have to demonstrate that Parliament and other institutions function and it will have its impact on the government and confidence will return in the economy he said. On its part, the government will not be found lacking in building consensus on broad economic policies, he added.

By denying perception that there is paralysis in decision making process, Finance minister said it is not so. The government has taken a number if decisions which include national manufacturing policy, incentives to small industries and package to debt-redden handloom weavers.

The S&P CNX Nifty opened at 4,788.70; about 12 points lower compared to its previous closing of 4,800.60, and has touched a high and a low of 4,797.25 and 4,777.25 respectively.

The index is currently trading at 4,781.65, down by 18.95 points or 0.39%. There were 11 stocks advancing against 39 declines on the index.

The top gainers of the Nifty were Sun Pharma up by 1.46%, L&T up by 1.36%, Cairn up by 0.91%, Jaiprakash Associates up by 0.83% and HUL up by 0.83%.

On the flip side, NTPC down by 2.16%, Hindalco down by 1.81%, M&M down by 1.20%, ICICI Bank down by 1.18% and Grasim down by 1.16%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite was down 3.02 points or 0.13% to 2,245.57, Hang Seng was down 33.38 points or 0.18% to 18,413.79, Jakarta Composite was down 9.80 points or 0.26% to 3,753.78, Nikkei 225 was down 45.94 points or 0.54% to 8,506.87, Straits Times was down 6.99 points or 0.26% to 2,678.75, Seoul Composite was down by 10.35 points or 0.56% to 1,853.71.

On the flip side, Taiwan Weighted was up by 6.32 points or 0.09% to 6,902.63.