As indicated by the feeble global cues the Indian equity markets have made a gap down start, though after the sharp fall in previous session the losses were not as severe as was being expected. The global markets are witnessing sharp sell-off; the US markets plunged overnight on weak economic reports, while, the Asian markets too made a weak start, with most of the indices suffering cut of about a percent. Apart from the global jitters the Reserve bank of India's mid quarterly policy review to be announced later in the day is weighing down the markets and the rate sensitive's have turned the laggards of the early trade, with consumer durables and the realty suffering the most. None of the sectoral gauges are trading in green right now. The apex bank will release its policy review at 12 noon and the general expectation is that it will go for an another rate hike of 25 basis points, continuing its hawkish move, though ahead of the review of the monetary policy, Industry body FICCI has urged the RBI to consider fine tuning the monetary policy and take pause from raising interest rates as any further such move would affect business sentiment adversely. Meanwhile, the PSU oil marketing companies are trading higher after the global crude prices plunged by over 4 percent overnight.
The BSE Sensex opened at 18,060.11; about 70 points lower compared to its previous closing of 18,132.24, and has touched a high and a low of 18,063.35 and 18,005.82 respectively. The index is currently trading at 18,054.36, down by 77.88 points or 0.43%. There were just 4 stocks advancing against 26 declines on the index.
The overall market breadth has made a weak start with 36.74% stocks advancing against 59.19% declines. The broader indices too have made a dismal start; the BSE Mid cap and Small cap indices were down by 0.67% and 0.31% respectively.
None of the sectoral indices on the BSE were in green. While, CD down by 1.38%, Realty down by 1.34%, Auto down by 0.90%, Metal down by 0.71% and Bankex down by 0.64% were the top losers on the index.
The gainers on the Sensex were Tata Power up by 0.68%, Cipla up by 0.48%, HUL up by 0.44% and BHEL up by 0.20%.
On the flip side, Bajaj Auto down by 1.62%, maruti Suzuki down by 1.53%, DLF down by 1.26%, Sterlite Inds down by 1.11% and M&M down by 0.96% were the top losers on the index.
Reliance Industries was unable to get any advantage of approval for the stake sale to BP. Home Ministry has given unconditional approval to Reliance Industries for the sale of a 30% stake in 23 oil and gas properties, including the Mukesh Ambani-led firm's showpiece KG-D6 block, to UK's BP Plc for $7.2 billion. The company's stock was trading lower by about a percent to sub Rs 900 level.
Meanwhile, the delay in Empowered Group of Ministers' decision on revision of fuel prices has raised the concern on the impact of rising fuel subsidy on government finances. Expressing concern over the delay in revision of fuel prices the Planning Commission Deputy Chairman Montek Singh Ahluwalia said, 'Failure to pass on the energy prices will effectively kill the energy sector and therefore killing its capacity to invest in exploration and development."
Expressing similar view, C Rangarajan, Chairman of Prime Minister's Economic Advisory Council (PMEAC) said, 'the OMCs (Oil Marketing Companies) are losing in a big way. If the diesel prices are not raised then the burden on the budget will also increase'. C Rangarajan is supporting deregulation of diesel price to reduce the subsidy burden of the government. At present around 9% of India's GDP is being spent on the energy and other subsidies. He also said the timing has to be decided but 'I think the direction in which we have to move is very clear. We need to move towards adjusting diesel prices in line with the international crude prices."
On the issue of protecting common man from increased oil prices Montek Singh Ahluwalia said, 'It is painful, it is difficult, we have to protect the poor and all the rest of it... but no strategy that fails to pass on the higher energy prices is going to be consistent with growth. Unless you believe that budgetary resources will somehow fill the gap. But, as we have already seen... budgetary resources are not there. 'There is absolutely no doubt in my mind that if global energy prices were to fall, it would benefit India's growth rate. It does not however, mean that since those energy prices are not going to fall, we should keep the energy prices low... in order to benefit our growth rate,' he added.
The S&P CNX Nifty opened at 5,419.65; about 28 points lower compared to its previous closing of 5,447.50, and has touched a high and a low of 5,423.80 and 5,404.40 respectively.
The index is currently trading at 5,422.90, down by 24.60 points or 0.45%. There were 11 stocks advancing against 39 declines on the index.
The top gainers of the Nifty were BPCL up by 0.90%, HUL up by 0.60%, NTPC up by 0.51%, BHEL up by 0.39% and SBI was up by 0.36%.
On the other hand, Ambuja Cements down by 2.16%, Bajaj Auto down by 1.61%, ACC down by 1.53%, M&M down by 1.44% and IDFC down by 1.40% were the major losers on the index.
All the Asian counterparts were trading in the red; Shanghai Composite was down 18.01 points or 0.67% to 2,687.42, Hang Seng plunged by 323.69 points or 1.45% to 22,020.08, Jakarta Composite was down by 32.61 points or 0.86% to 3,762.04, KLSE Composite was down by 3.22 points or 0.21% to 1,552.97, Nikkei 225 lost 101.96 points or 1.06% to 9,553.72, Straits Times was down 26.76 points or 0.88% to 3,028.03, Seoul Composite was down 35.31 points or 1.69% to 2,051.34 and Taiwan Weighted was down by 137.95 points or 1.56% to 8,693.81.
The BSE Sensex opened at 18,060.11; about 70 points lower compared to its previous closing of 18,132.24, and has touched a high and a low of 18,063.35 and 18,005.82 respectively. The index is currently trading at 18,054.36, down by 77.88 points or 0.43%. There were just 4 stocks advancing against 26 declines on the index.
The overall market breadth has made a weak start with 36.74% stocks advancing against 59.19% declines. The broader indices too have made a dismal start; the BSE Mid cap and Small cap indices were down by 0.67% and 0.31% respectively.
None of the sectoral indices on the BSE were in green. While, CD down by 1.38%, Realty down by 1.34%, Auto down by 0.90%, Metal down by 0.71% and Bankex down by 0.64% were the top losers on the index.
The gainers on the Sensex were Tata Power up by 0.68%, Cipla up by 0.48%, HUL up by 0.44% and BHEL up by 0.20%.
On the flip side, Bajaj Auto down by 1.62%, maruti Suzuki down by 1.53%, DLF down by 1.26%, Sterlite Inds down by 1.11% and M&M down by 0.96% were the top losers on the index.
Reliance Industries was unable to get any advantage of approval for the stake sale to BP. Home Ministry has given unconditional approval to Reliance Industries for the sale of a 30% stake in 23 oil and gas properties, including the Mukesh Ambani-led firm's showpiece KG-D6 block, to UK's BP Plc for $7.2 billion. The company's stock was trading lower by about a percent to sub Rs 900 level.
Meanwhile, the delay in Empowered Group of Ministers' decision on revision of fuel prices has raised the concern on the impact of rising fuel subsidy on government finances. Expressing concern over the delay in revision of fuel prices the Planning Commission Deputy Chairman Montek Singh Ahluwalia said, 'Failure to pass on the energy prices will effectively kill the energy sector and therefore killing its capacity to invest in exploration and development."
Expressing similar view, C Rangarajan, Chairman of Prime Minister's Economic Advisory Council (PMEAC) said, 'the OMCs (Oil Marketing Companies) are losing in a big way. If the diesel prices are not raised then the burden on the budget will also increase'. C Rangarajan is supporting deregulation of diesel price to reduce the subsidy burden of the government. At present around 9% of India's GDP is being spent on the energy and other subsidies. He also said the timing has to be decided but 'I think the direction in which we have to move is very clear. We need to move towards adjusting diesel prices in line with the international crude prices."
On the issue of protecting common man from increased oil prices Montek Singh Ahluwalia said, 'It is painful, it is difficult, we have to protect the poor and all the rest of it... but no strategy that fails to pass on the higher energy prices is going to be consistent with growth. Unless you believe that budgetary resources will somehow fill the gap. But, as we have already seen... budgetary resources are not there. 'There is absolutely no doubt in my mind that if global energy prices were to fall, it would benefit India's growth rate. It does not however, mean that since those energy prices are not going to fall, we should keep the energy prices low... in order to benefit our growth rate,' he added.
The S&P CNX Nifty opened at 5,419.65; about 28 points lower compared to its previous closing of 5,447.50, and has touched a high and a low of 5,423.80 and 5,404.40 respectively.
The index is currently trading at 5,422.90, down by 24.60 points or 0.45%. There were 11 stocks advancing against 39 declines on the index.
The top gainers of the Nifty were BPCL up by 0.90%, HUL up by 0.60%, NTPC up by 0.51%, BHEL up by 0.39% and SBI was up by 0.36%.
On the other hand, Ambuja Cements down by 2.16%, Bajaj Auto down by 1.61%, ACC down by 1.53%, M&M down by 1.44% and IDFC down by 1.40% were the major losers on the index.
All the Asian counterparts were trading in the red; Shanghai Composite was down 18.01 points or 0.67% to 2,687.42, Hang Seng plunged by 323.69 points or 1.45% to 22,020.08, Jakarta Composite was down by 32.61 points or 0.86% to 3,762.04, KLSE Composite was down by 3.22 points or 0.21% to 1,552.97, Nikkei 225 lost 101.96 points or 1.06% to 9,553.72, Straits Times was down 26.76 points or 0.88% to 3,028.03, Seoul Composite was down 35.31 points or 1.69% to 2,051.34 and Taiwan Weighted was down by 137.95 points or 1.56% to 8,693.81.
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