The Indian equity markets have made a positive start on the back of bargain hunting by institutional investors after a three-day slide. However, the overall mood remained cautious amid lingering worries about the health of the global economy. The US market declined overnight snapping three sessions of gains as Germany and France rejected the notion of selling common European bonds and suggested a financial-transaction tax while, Asian counterparts were trading flat at this point of time. Back home, on the sectoral front fast moving consumer goods witnessed the maximum gain in trade followed by software and oil and gas while, realty, auto and metal remained the top losers on the BSE sectoral space. Meanwhile, PSU oil marketing companies viz., BPCL, HPCL and IOC edged higher in the trade as international crude oil prices declined as European leaders failed to ease concerns. However, the rate sensitive like Realty, Auto and Banking remained under pressure as the Chief Economic Adviser to the finance ministry Kaushik Basu has said that India's headline inflation in August is expected to be near 10 percent, which will prompt RBI to go for another rate hike. The broader indices were outperforming benchmarks. The market breadth on the BSE was negative; there were 388 shares on the gaining side against 670 shares on the losing side while 41 shares remained unchanged.
The BSE Sensex opened at 16,782.24; about 51 points higher compared to its previous closing of 16,730.94, and has touched a high and a low of 16,873.03 and 16,748.36 respectively.
The index is currently trading at 16,782.55, up by 51.61 points or 0.31%. There were 20 stocks advancing against 10 declines on the index.
The overall market breadth has made a negative start with 35.30% stocks advancing against 60.96% declines. The broader indices were bleeding in the initial trade; the BSE Mid cap and Small cap indices declined 0.51% and 0.27% respectively.
The top gaining sectoral indices on the BSE were, FMCG up by 1.07%, IT up by 0.87%, Oil and Gas up by 0.59%, CD up by 0.35% and TECk was up by 0.30%. While, Realty down by 2.70%, Auto down by 1.08%, Metal down by 0.60%, Bankex down by 0.51% and CG down by 0.25% were the top losers on the index.
The top gainers on the Sensex were Sun Pharma up by 2.71%, TCS up by 2.36%, HDFC up by 2.19%, Jaiprakash Associates up by 2.10% and HDFC Bank was up by 1.86%.
On the flip side, DLF was down by 3.76%, ICICI Bank was down by 1.99%, M&M was down by 1.82%, Tata Motors was down by 1.13% and Hindalco was down by 1.00% were the top losers on the Sensex.
Meanwhile, State-run oil marketing firms have asked government to pay interest on the subsidy amount that is held back by the latter. According to OMCs, they received letter from government mentioning the compensation amount, which is included by companies in there quarterly results, however they are yet to receive the actual amount.
Government has announced Rs 15,000 crore subsidies for the first quarter to OMCs for selling their products below market prices. Oil Ministry officials said that actual amount will be transferred to the OMCs account only by the end of current fiscal; till then the companies are forced to bear the brunt of higher interest borrowings.
The fuel prices were increased in June 2011 which attracted country-wide protests. The diesel price were increased by Rs 3.37 per litre, LPG Rs 50 per cylinder and Rs 2 per litre increase in kerosene rate, this hike in prices proved little helpful to OMCs profitability, but reduced their liquidity strain. Government had budgeted Rs 20,000 crore as fuel subsidy for current fiscal, however, the said amount has already been spent in paying the dues of previous fiscal.
Thus, the worries of OMCs are still continuing; they have to borrow at higher costs as government is delaying the release of subsidy. IOC chairman RS Butola said that the three oil companies had been pleading with the government that compensation should be paid on a monthly basis. 'Major reasons for the loss are unmet under-recovery (revenue loss) and high borrowing cost,' Butola added. IOC's borrowing had soared up to over Rs 67,000 crore, from about Rs 52,000 crore, on March 31, 2011. This delay had caused the firm an additional interest burden of over Rs 1,000 crore. Similarly, HPCL and BPCL's profitability is severely affected. All three firms (IOC, HPCL and BPCL) has reported a total net loss of Rs 9,000 crore.
The S&P CNX Nifty opened at 5,030.30; about 5 points lower compared to its previous closing of 5,035.80, and has touched a high of 5,075.45 while low remained its opening.
The index is currently trading at 5,042.95, higher by 7.15 points or 0.14%. There were 29 stocks advancing against 21 declines on the index.
The top gainers of the Nifty were Sun Pharma up by 2.07%, ONGC up by 2.03%, HDFC up by 1.63%, HDFC Bank up by 1.43% and TCS up by 1.43%.
On the flip side, DLF down by 3.44%, RCom down by 2.64%, Reliance Infra down by 2.48%, M&M down by 2.19% and ICICI Bank down by 1.86%, were the major losers on the index.
The BSE Sensex opened at 16,782.24; about 51 points higher compared to its previous closing of 16,730.94, and has touched a high and a low of 16,873.03 and 16,748.36 respectively.
The index is currently trading at 16,782.55, up by 51.61 points or 0.31%. There were 20 stocks advancing against 10 declines on the index.
The overall market breadth has made a negative start with 35.30% stocks advancing against 60.96% declines. The broader indices were bleeding in the initial trade; the BSE Mid cap and Small cap indices declined 0.51% and 0.27% respectively.
The top gaining sectoral indices on the BSE were, FMCG up by 1.07%, IT up by 0.87%, Oil and Gas up by 0.59%, CD up by 0.35% and TECk was up by 0.30%. While, Realty down by 2.70%, Auto down by 1.08%, Metal down by 0.60%, Bankex down by 0.51% and CG down by 0.25% were the top losers on the index.
The top gainers on the Sensex were Sun Pharma up by 2.71%, TCS up by 2.36%, HDFC up by 2.19%, Jaiprakash Associates up by 2.10% and HDFC Bank was up by 1.86%.
On the flip side, DLF was down by 3.76%, ICICI Bank was down by 1.99%, M&M was down by 1.82%, Tata Motors was down by 1.13% and Hindalco was down by 1.00% were the top losers on the Sensex.
Meanwhile, State-run oil marketing firms have asked government to pay interest on the subsidy amount that is held back by the latter. According to OMCs, they received letter from government mentioning the compensation amount, which is included by companies in there quarterly results, however they are yet to receive the actual amount.
Government has announced Rs 15,000 crore subsidies for the first quarter to OMCs for selling their products below market prices. Oil Ministry officials said that actual amount will be transferred to the OMCs account only by the end of current fiscal; till then the companies are forced to bear the brunt of higher interest borrowings.
The fuel prices were increased in June 2011 which attracted country-wide protests. The diesel price were increased by Rs 3.37 per litre, LPG Rs 50 per cylinder and Rs 2 per litre increase in kerosene rate, this hike in prices proved little helpful to OMCs profitability, but reduced their liquidity strain. Government had budgeted Rs 20,000 crore as fuel subsidy for current fiscal, however, the said amount has already been spent in paying the dues of previous fiscal.
Thus, the worries of OMCs are still continuing; they have to borrow at higher costs as government is delaying the release of subsidy. IOC chairman RS Butola said that the three oil companies had been pleading with the government that compensation should be paid on a monthly basis. 'Major reasons for the loss are unmet under-recovery (revenue loss) and high borrowing cost,' Butola added. IOC's borrowing had soared up to over Rs 67,000 crore, from about Rs 52,000 crore, on March 31, 2011. This delay had caused the firm an additional interest burden of over Rs 1,000 crore. Similarly, HPCL and BPCL's profitability is severely affected. All three firms (IOC, HPCL and BPCL) has reported a total net loss of Rs 9,000 crore.
The S&P CNX Nifty opened at 5,030.30; about 5 points lower compared to its previous closing of 5,035.80, and has touched a high of 5,075.45 while low remained its opening.
The index is currently trading at 5,042.95, higher by 7.15 points or 0.14%. There were 29 stocks advancing against 21 declines on the index.
The top gainers of the Nifty were Sun Pharma up by 2.07%, ONGC up by 2.03%, HDFC up by 1.63%, HDFC Bank up by 1.43% and TCS up by 1.43%.
On the flip side, DLF down by 3.44%, RCom down by 2.64%, Reliance Infra down by 2.48%, M&M down by 2.19% and ICICI Bank down by 1.86%, were the major losers on the index.
Asian markets were trading on a flat note; Hang Seng was up 190.87 points or 0.94% to 20,402.95, KLSE Composite was up 3.94 points or 0.26% to 1,502.18, Straits Times was up 12.91 points or 0.46% to 2,845.64 and Seoul Composite was up by 11.16 points or 0.59% to 1,891.03.
On the flip side, Shanghai Composite was down 0.92 points or 0.04% to 2,607.25, Nikkei 225 was down 42.82 points or 0.47% to 9,064.61 and Taiwan Weighted was down by 52.45 points or 0.67% to 7,746.14. 
No comments:
Post a Comment