Indian stock markets largely demonstrated choppy mood on the first trading session of a new week as investors remained on sidelines ahead of the WPI inflation data for May scheduled to be announced on Tuesday. Even as the benchmarks failed to negotiate a close in the green for the fourth straight session, they still managed to pare almost all the intraday losses, incurred in the early part of the session tracking weak global markets. Investors are keenly awaiting the monthly inflation figures and a reading that is a level higher than April's figure will compel Indian policy makers to hike interest rates for the 10th time in just 16 months, despite the pace of economic activity showing signs of easing. Expectations are rife that the RBI will take a calibrated approach and hike rates by 25 bps at its mid-quarter monetary policy meeting on Thursday. While apprehensions over the cooling global economic recovery too pummeled local sentiments as the storm of fiscal woe in the US, a slowdown in China, European debt restructuring and stagnation in Japan combined together, providing enough evidence of an economic slowdown in the major economies across the globe. Stock markets in Asia yet again failed to show any kind of fervor and settled on a somber note while the European counterparts are exhibiting mixed trends after getting off to a flat start. The spurt in international crude oil prices in the recent past also pulverized domestic sentiments by augmenting rate hike fears. The only positive for the local bourses was that the finance ministry has agreed to extend the Duty Entitlement Pass Book (DEPB) scheme beyond the June 30 deadline on the condition that this would be the last extension and a new scheme would replace DEPB scheme by that period. In another development, the CAG's first ever audit of oil companies has once again embarrassed the Congress-led UPA government as it opined that the government favored private oil explorers including the Mukesh Ambani-led firm and allowed it to violate terms of contract for exploration in the Krishna-Godavari basin.
The NSE's 50-share broadly followed index Nifty, was little changed and remained below the crucial 5,500 support level while Bombay Stock Exchange's Sensitive Index, Sensex took a single digit cut and closed above the psychological 18,250 mark. The broader markets, which remained weak in early trade showed some resilience and recuperated all the losses to end with moderate gains. The midcap index ended with 0.28% gains while the smallcap index rose by 0.30% point. On the sectoral front, it was the Metal counter which languished at the bottom of the table with 1% as majors like Hindalco and Bhushan Steel plunged by 2.22% and 3.27% respectively. While Oil and Gas sector too settled weak since Index heavyweight Reliance Industries got clobbered out of shape in the session after oil regulator Directorate General of Hydrocarbons refused to accredit three natural gas discoveries made by the company at its KG-D 6 block. On the other hand, Consumer Durables pocket remained the top gainer in the BSE sectoral space for the second straight session after majors like Gitanjali Gems and Titan zoomed by 1.81% and 2.26% respectively. The markets receded on lower volumes of over Rs 0.93 lakh crore while the turnover for NSE F&O segment also remained on the lower side compared to Friday at over 0.82 lakh crore. Market breadth remained positive as there were 1438 shares on the gaining side against 1379 shares on the losing side while 122 shares remained unchanged.
Finally, the BSE Sensex declined by 2.51points or 0.01% to settle at 18,266.03 while the S&P CNX Nifty lost 3.00 points or 0.05% to settle at 5,482.80.
The BSE Sensex touched a high and a low of 18,313.21 and 18,120.76, respectively. The BSE Mid cap and Small cap index were up by 0.28% and 0.30% respectively. The only gainers on the Sensex were Jaiprakash Associates up 3.18%, NTPC up 2.27%, Cipla up 2.05%, Reliance Communication up 1.78% and Bajaj Auto up 1.25%.
On the flip side, Hindalco Industries down 2.22%, RIL down 1.84%, Tata Steel down 1.12%, TCS down 1.10% and SBI down 1.02% were the top losers on the index.
Meanwhile, the indirect tax collection registered a healthy growth in the first two month of the present financial year and if the trend continues it will help government to meet the fiscal deficit target of 4.6% of the GDP, for the current financial year. The development also shows that the Reserve Bank of India's tight monetary policy is not impeding the industrial growth much.
The excise duty collection increased by 38.4% to Rs 11,586 crore, revenue from Customs jumped 37% to Rs 25,176 crore and service tax increased by 27.6% in April-May at Rs 7,722 crore. The rise of 38.4% in excise duty collection shows strong growth of factory production. The excise duty is taxed on production of goods at a median rate of 10%. Growth in custom duty too remained in line with the increase in Import, which registered a 33% growth in first two months.
S D Majumder, chairman, Central Board of Excise and Customs (CBEC) said, 'Indirect taxes collections have been robust in the first two months of the current fiscal, but there could have been some spillover in excise in April from the previous fiscal'.
Earlier, government had raised it concerns over meeting the revenue target because of slow economic expansion. According to latest figures, Indian economy's expansion is falling, due to elevated inflation and interest rate. Industrial output saw a seven month low growth, whereas car sale for month of May where two year low. An increased international crude oil price is viewed as the main reason for the revenue concerns and almost 50% rise in crude oil price from last June had made government to reconsider its revenue targets.
The major gainers on the BSE sectoral space were Consumer Durables (CD) up 1.39%, Power up 0.74%, Capital Goods (CG) up 0.71%, Health Care (HC) up 0.32% and Auto up 0.21%.
The major losers in the BSE sectoral space were Metal down 0.99%, Oil & Gas down 0.74%, Realty down 0.30%, FMCG down 0.23% and IT down 0.02%.
The S&P CNX Nifty touched high and low of 5,496.70 and 5,436.95, respectively.
The top gainers of the Nifty were JP Associate up 3.68%, Cipla up 2.27%, NTPC up 2.13%, Sun Pharma up 1.97% and BPCL up 1.86%.
On the flip side, Hindalco down 2.38%, Reliance down 2.11%, Sesa Goa down 2.02%, Dr Reddy down 1.73% and Tata Steel down 1.15% were the major losers on the index.
European markets were trading mixed. France's CAC 40 gained by 0.27%, Britain's FTSE 100 plunged 1.21% and Germany's DAX was up by 0.03%.
Asian equity indices finished the day's trade mostly in the negative terrain on Monday as investors remained worried over recoveries in the world's major economies are sputtering while, the US markets also witnessed a sharp decline on Friday and the Dow slipped below 12000 mark too weighed on sentiments in the region. Chinese Shanghai Composite edged lower in the trade as investors remained cautious over further monetary policy tightening ahead of Tuesday's inflation data. Japanese Nikkei dropped more than half a percent after the government reported that core machinery orders fell unexpectedly in April by 3.3 percent from the previous month. The drop came as companies canceled orders amid fears of a slowdown following a devastating March 11 earthquake and tsunami in northeastern Japan that threw scores of factories offline.
The NSE's 50-share broadly followed index Nifty, was little changed and remained below the crucial 5,500 support level while Bombay Stock Exchange's Sensitive Index, Sensex took a single digit cut and closed above the psychological 18,250 mark. The broader markets, which remained weak in early trade showed some resilience and recuperated all the losses to end with moderate gains. The midcap index ended with 0.28% gains while the smallcap index rose by 0.30% point. On the sectoral front, it was the Metal counter which languished at the bottom of the table with 1% as majors like Hindalco and Bhushan Steel plunged by 2.22% and 3.27% respectively. While Oil and Gas sector too settled weak since Index heavyweight Reliance Industries got clobbered out of shape in the session after oil regulator Directorate General of Hydrocarbons refused to accredit three natural gas discoveries made by the company at its KG-D 6 block. On the other hand, Consumer Durables pocket remained the top gainer in the BSE sectoral space for the second straight session after majors like Gitanjali Gems and Titan zoomed by 1.81% and 2.26% respectively. The markets receded on lower volumes of over Rs 0.93 lakh crore while the turnover for NSE F&O segment also remained on the lower side compared to Friday at over 0.82 lakh crore. Market breadth remained positive as there were 1438 shares on the gaining side against 1379 shares on the losing side while 122 shares remained unchanged.
Finally, the BSE Sensex declined by 2.51points or 0.01% to settle at 18,266.03 while the S&P CNX Nifty lost 3.00 points or 0.05% to settle at 5,482.80.
The BSE Sensex touched a high and a low of 18,313.21 and 18,120.76, respectively. The BSE Mid cap and Small cap index were up by 0.28% and 0.30% respectively. The only gainers on the Sensex were Jaiprakash Associates up 3.18%, NTPC up 2.27%, Cipla up 2.05%, Reliance Communication up 1.78% and Bajaj Auto up 1.25%.
On the flip side, Hindalco Industries down 2.22%, RIL down 1.84%, Tata Steel down 1.12%, TCS down 1.10% and SBI down 1.02% were the top losers on the index.
Meanwhile, the indirect tax collection registered a healthy growth in the first two month of the present financial year and if the trend continues it will help government to meet the fiscal deficit target of 4.6% of the GDP, for the current financial year. The development also shows that the Reserve Bank of India's tight monetary policy is not impeding the industrial growth much.
The excise duty collection increased by 38.4% to Rs 11,586 crore, revenue from Customs jumped 37% to Rs 25,176 crore and service tax increased by 27.6% in April-May at Rs 7,722 crore. The rise of 38.4% in excise duty collection shows strong growth of factory production. The excise duty is taxed on production of goods at a median rate of 10%. Growth in custom duty too remained in line with the increase in Import, which registered a 33% growth in first two months.
S D Majumder, chairman, Central Board of Excise and Customs (CBEC) said, 'Indirect taxes collections have been robust in the first two months of the current fiscal, but there could have been some spillover in excise in April from the previous fiscal'.
Earlier, government had raised it concerns over meeting the revenue target because of slow economic expansion. According to latest figures, Indian economy's expansion is falling, due to elevated inflation and interest rate. Industrial output saw a seven month low growth, whereas car sale for month of May where two year low. An increased international crude oil price is viewed as the main reason for the revenue concerns and almost 50% rise in crude oil price from last June had made government to reconsider its revenue targets.
The major gainers on the BSE sectoral space were Consumer Durables (CD) up 1.39%, Power up 0.74%, Capital Goods (CG) up 0.71%, Health Care (HC) up 0.32% and Auto up 0.21%.
The major losers in the BSE sectoral space were Metal down 0.99%, Oil & Gas down 0.74%, Realty down 0.30%, FMCG down 0.23% and IT down 0.02%.
The S&P CNX Nifty touched high and low of 5,496.70 and 5,436.95, respectively.
The top gainers of the Nifty were JP Associate up 3.68%, Cipla up 2.27%, NTPC up 2.13%, Sun Pharma up 1.97% and BPCL up 1.86%.
On the flip side, Hindalco down 2.38%, Reliance down 2.11%, Sesa Goa down 2.02%, Dr Reddy down 1.73% and Tata Steel down 1.15% were the major losers on the index.
European markets were trading mixed. France's CAC 40 gained by 0.27%, Britain's FTSE 100 plunged 1.21% and Germany's DAX was up by 0.03%.
Asian equity indices finished the day's trade mostly in the negative terrain on Monday as investors remained worried over recoveries in the world's major economies are sputtering while, the US markets also witnessed a sharp decline on Friday and the Dow slipped below 12000 mark too weighed on sentiments in the region. Chinese Shanghai Composite edged lower in the trade as investors remained cautious over further monetary policy tightening ahead of Tuesday's inflation data. Japanese Nikkei dropped more than half a percent after the government reported that core machinery orders fell unexpectedly in April by 3.3 percent from the previous month. The drop came as companies canceled orders amid fears of a slowdown following a devastating March 11 earthquake and tsunami in northeastern Japan that threw scores of factories offline.
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