Indian equities pare gains to trade in red; Nifty below 5,000 level

Indian equities pare gains to continue its trade in red in the late afternoon session as conservative investors started selling frontline blue chip counters amid weak European cues. Sentiments also remained subdued as disappointing Chinese trade data kept markets on edge. Chinese exports rose 4.9% in April from a year earlier, while imports rose 0.3%, as per the latest data. The growth in both imports and exports was below expectations. Besides, China's trade surplus for April widened to $18.4 billion, compared to expectations of $10.4 billion. Traders were seen piling up position in Oil & Gas sector while selling was witnessed in Auto, Metal and FMCG sector. Maruti, Hero MotoCorp, Bajaj Auto and Tata Motors from auto pack were seen trading weak driving the markets down. Sterlite, Sesa Goa, SAIL, Hindalco, Jindal Steel and Tata Steel from Metal pack were seen trading weak in red drifting the markets lower. However, Cairn India, BPCL and ONGC from Oil & Gas sector was seen trading firm providing the much needed support. 

In the scrip specific development, lot of activity has been noticed in cement companies counters on reports that the Competition Commission of India, an anti-trust body, has completed its probe into alleged cartelisation by around 39 cement companies, CCI may impose hefty penalties on companies found guilty. Kingfisher Airline was seen trading in red after a section of Kingfisher pilots have decided not to fly from tonight to protest ‘backtracking’ by the management on its ‘assurance’ of remitting their January salaries from May 9.

On the global front, the Asian markets were trading on a mix note while the European markets were too trading on a mix note. On the home turf, the NSE Nifty and BSE Sensex were trading below their psychological 5,000 and 16,500 levels respectively. The market breadth on BSE was negative in the ratio of 1208:1372 while 129 scrips remained unchanged.

The BSE Sensex is currently trading at 16,416.76, down by 62.82 points or 0.38%. The index has touched a high and low of 16,671.81 and 16,400.14 respectively. There were 11 stocks advancing against just 18 declines on the index while 1 remained unchanged.

The broader indices were also trading in red; the BSE Mid cap and Small cap indices were down by 0.03% and 0.20% respectively.

The top gaining sectoral indices on the BSE was, Oil & Gas up 0.35% while Auto down 0.85%, Metal down 0.85%, FMCG down 0.61%, Realty down 0.60% and IT down 0.50% were the top losers.

The top gainers on the Sensex were BHEL up by 1.30%, DLF up by 1.29%, M&M up by 1.05%, HUL up 0.68% and Tata Power up by 0.67%.

On the flip side, Maruti Suzuki down by 3.22%, Sterlite Industries down by 2.33%, Hero MotoCorp down by 2.05%, Hindalco Industries down by 1.68% and SBI down by 1.49% were the top losers on the Sensex.

Meanwhile, taking into account, factors like potential for traffic, tourism potential, non-aeronautical revenues boosted by exploitation of surplus land and connectivity with state capital, the government has identified 35-non metro airports of Airports Authority of India (AAI) for expansion and also upgradation.

A Task Force was formed by the Committee on Infrastructure for the need for expansion and upgradation of the airport infrastructure in India. The Task Force identified 35 airports, based on the traffic demand and operational needs; work has been taken up for the expansion of air/terminal side infrastructure at 27 other non-metro airports of AAI.

Moreover, the airports at Bhopal and Indore have been modernized already and also put into operation. AAI is considering extending the runway and also other associated facilities at Tuticorin airport in Tamil Nadu, subject to 586 acres of land to be made available by the government of Tamil Nadu. Funds allocated for Tuticorin in the Budget Estimates 2012-13 is Rs 10 lakh. Allocation in response of airports in Madhya Pradesh is Rs 6.34 crore.

Further, the Civil Aviation Minister Ajit Singh stated that work on expansion and modernization of Srinagar Airport was complete in April 2009 at a cost of Rs 101.33 crore.  By adding further he said, the work on expansion of its apron (phase II) had also been completed in March 2011 at a cost of Rs 28 crore. In addition, the work on construction of new terminal building was also completed way back in April 2008 at a cost of Rs 77.44 crore, while extension and strengthening of runway and allied works were completed in May 2009 at a cost of Rs 44.31 crore.

The S&P CNX Nifty is currently trading at 4,956.20, lower by 18.60 points or 0.37%. The index has touched a high and low of 5,039.30 and 4,953.85 respectively.  There were 22 stocks advancing against 28 declines on the index.

The top gainers of the Nifty were IDFC up by 4.30%, Cairn India up by 2.51%, BHEL up by 1.37%, BPCL up by 1.36% and DLF up by 1.35%.

On the flip side, Maruti Suzuki down by 3.34%, Ranbaxy down by 3.00%, Hero MotoCorp down by 2.52%, Sterlite Industries down by 2.49% and Sesa Goa down by 2.46% were the major losers on the index.

The Asian indices continued to show mixed trend; Shanghai Composite up 0.07%, KLSE Composite was up by 0.23% and Taiwan Weighted gained 0.11%.

On the other hand, Hang Seng lost 0.51%, Jakarta Composite was down by 0.11%, %, Nikkei 225 down by 0.39%, Straits Times lost 0.11% and Kospi Composite was marginally down by 0.27%.

The European markets were trading on a mix note with France’s CAC 40 sank 0.20%, Germany’s DAX gain 0.13% and United Kingdom’s FTSE eased 0.22%.