Benchmarks trade marginally in red in afternoon session

Indian equity benchmarks were trading slightly lower in afternoon session, after paring all early gains amid selling in metal, realty and oil and gas stocks. Profit booking witnessed in some front line blue-chip stocks such as Tata Steel, Sun Pharma and Bharti Airtel also dragged the market down. Investors remained cautious ahead of industrial output and inflation data, slated to be announced on Wednesday. However, losses remain capped as investors were seen piling up position in power, IT and teck stock supported the market. Sentiments got some support as the foreign investors pumped in over Rs 3,000 crore in the past week. The domestic currency, after ending at seven-month high levels on Monday, continued to appreciation against the dollar. Metal was top losing index on BSE down by 2.57% as intensive selling witnessed in metal stocks amid rising concerns over the prevailing economic slowdown in China. Auto stocks were also trading lower despite some positive vehicles sales data. Domestic passenger cars sales increased by 1.39 percent to 1.60 lakh units in the month of February as compared to 1.58 lakh units in the corresponding month last year fuelled by a cut in excise duty.

On stock specific movement, Ceat has rallied 7% to Rs 380 on back of heavy volumes on the bourses. Since February 25, Ceat stock has rallied around 39% from Rs 279 after the company said it has resumed the manufacturing operations at the Bhandup plant, near Mumbai. Vascon Engineers stocks locked in upper circuit for second day in a row, up 20% at Rs 25.90 after the company said it has bagged two projects worth Rs 245 crore.

On global front, Asian equity indices were trading in green with Nikkei 225 up by 0.71% and Hang Seng up by 0.05%. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,500 and 21,900 levels respectively. The market breadth on BSE was positive, out of 2,438 stocks traded, 1,086 stocks advanced, while 1,194 stocks declined on the BSE.

The BSE Sensex is currently trading at 21,904.63 down by 30.20 points or 0.14% after trading in a range of 22,018.52 and 21,841.58. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.14%, while Small cap index up by 0.17%.

The gaining sectoral indices on the BSE were Power up by 0.76%, IT up by 0.56%, Teck up by 0.26% and Capital Goods up by 0.02%. While, Metal down by 2.57%, Realty down by 0.37%, Auto down by 0.29%, Oil and Gas down by 0.27%, FMCG down by 0.17% and Consumer Durables down by 0.12% were the losing indices on BSE.   

The top gainers on the Sensex were Tata Power up by 3.29%, BHEL up by 0.98%, Wipro up by 0.98%, Gail India up by 0.95% and Dr Reddy’s Lab up by 0.93%. On the flip side, Tata Steel down by 3.83%, Hindalco Inds down by 3.36%, SSLT down by 2.74%, M&M down by 1.96% and Sun Pharma down by 1.73%.

Meanwhile, showing a positive trend after a few months of contraction, domestic passenger cars sales increased by 1.39 percent to 1.60 lakh units in the month of February as compared to 1.58 lakh units in the corresponding month last year fuelled by a cut in excise duty.

Total two-wheelers sales also went up by 9.69 percent to 12.20 lakh units in February’2014 against 11.12 lakh units in February 2013. In two wheelers segment, scooter sales were up by 28 percent to 3.11 lakh units in February against 2.43 lakh units in the same month of last year, while, motorcycles sales rose 5.39 percent to 8.43 lakh units in reported month from 8 lakh a year ago. However, commercial vehicles segment is still in negative zone with sales declined by 30 per cent to 47,982 units in the month compared with 68,388 units in February 2013. Three-wheelers sales were also down 14 percent in February on year-on-year basis.

High growth in vehicles sales was mainly attributed to the government as Finance Minister P Chidambaram had last month lowered excise duty on small cars, motorcycles, trucks and buses to 8 percent from 12 percent. The levy on SUVs was cut to 24 percent from 30 percent and taxes on compact cars and sedans were also reduced to 20-24 percent. Consequently, auto companies also reduced the sale prices in February, resulting in a rise in sales.

The Society of Indian Automobile Manufacturers (SIAM), however, maintained a cautious outlook on the automobile industry noting that it was too early to say that the negative trends have reversed.

The CNX Nifty is currently trading at 6,527.70 down by 9.55 points or 0.15% after trading in a range of 6,562.85 and 6,510. There were only 20 stocks advancing against 30 declining on the index.

The top gainers of the Nifty were Tata Power up by 2.97%, IDFC up by 1.69%, HCL Tech up by 1.26%, Dr Reddy’s Lab up by 1.05% and Wipro up by 1.03%. On the flip side, Tata Steel down by 3.93%, Hindalco Inds down by 3.53%, NMDC down by 2.69%, SSLT down by 2.56% and Jindal Steel down by 2.39% were the major losers on the index.

Asian equity indices were trading in green; Nikkei 225 up by 107.50 points or 0.71% to 15,227.66, Hang Seng up by 10.93 points or 0.05% to 22,275.86, Straits Times was up by 14.56 points or 0.45% to 3,140.59, Jakarta Composite up by 7.76 points or around 0.17% to 4,685.01 and Taiwan Weighted was up by 0.43% to 8,702.33. On the flip side, Shanghai Composite down by 6.31points or 0.30% to 1,992.79.