The Indian equity markets were pulled back from the
highs and currently trading flat and with minor losses at late morning
trades. Sensex falter after smart recovery, while Nifty was below 5,000
mark. Investors were mostly treading on a cautious path amid a lack of
triggers. On sectoral front, power, PSU and realty stocks were among the
prominent losers. Bank, FMCG and information technology stocks were off
their highs due to lack of support. Consumer durables and capital goods
stocks were finding good support, while pharmaceuticals and oil were
mostly trading flat. ADAG stocks are down sharply in the red due to
heavy selling on the back of reports that the Central Bureau of
Investigation is probing the role of Anil Ambani in a multi-billion
dollar telecom scandal. Reliance Power, Reliance Communications,
Reliance Infrastructure and Reliance Capital plunged 4-9%. On the global
front, Asian stock markets were trading on a mixed note. Back home, the
market breadth favoring the positive trend; there were 1,274 shares on
the gaining side against 1,077 shares on the losing side while 113
shares remained unchanged.
The BSE Sensex is currently trading at 16,668.25, down by 29.82 points or 0.18%. The index has touched a high and low of 16,745.16 and 16,495.51 respectively. There were just 10 stocks advancing against 19 declines on the index and one remained unchanged.
The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices were up by 0.43% and 0.22% respectively.
The only gaining sectoral indices on the BSE were, CD up by 1.23%, CG up by 0.46%, HC up by 0.18%, TECk up by 0.13% and Oil & Gas up by 0.05%. While, Power down by 0.84%, PSU down by 0.70%, Bankex down by 0.65%, Realty down by 0.60% and FMCG down by 0.52% were the top losers on the index.
The top gainers on the Sensex were Bharti Airtel up by 1.98%, L&T up by 1.26%, Reliance up by 1.21%, JP Associate up by 0.81% and Bajaj Auto up by 0.36%.
On the flip side, ONGC down by 2.32%, Tata Power down by 2.10%, Heromoto Corp down by 1.46%, SBI down by 1.25% and HUL down by 0.96% were the top losers on the index.
Meanwhile, the finance ministry on September 29, said the government in the second half of the current financial year would borrow an additional Rs 52,800 crore from the market, more than the budget estimate, sending bond yields higher. However, the government is hopeful that this additional borrowing will not affect the government's fiscal deficit target of 4.6% of the GDP in 2011-12.
After the meeting the Reserve Bank of India's officers, the Economic Affairs Secretary R Gopalan, said, the government was increasing the gross borrowings by Rs 52,800 crore for the second half. 'The reason is a dip in the small savings collection.' Because of the increase in government borrowing in second half of the fiscal year, triggered an increase in the yields on the ten-year benchmark government bond by 10 basis points. It closed at 8.44% due to the extra borrowing from government was much higher than market expectations.
Actually, the additional borrowings are more than Rs 40,000 crore. The government is targeting to achieve this from the disinvestment of public sector units (PSUs). However, because of the present sluggish situation, meeting the disinvestment target would be difficult. Though, the government is hopeful of meeting this difficult target.
For the current financial year, originally, the government was about to borrow Rs 4.17 lakh crore, but now it will borrow around Rs 4.7 lakh crore, this Rs 53,000 crore increase is due to lower cash balance and decline in collections from small savings schemes due to better interest rate offered by the banks to depositors. The budget calculations were made with an estimate of Rs 24,000 in the National Small Saving Funds (NSSF), however, it declined by Rs 35,000 crore.
In the first six months of current financial year, the government borrowed around Rs 2.5 lakh crore via dated securities, which is 60% of the total estimate made in budget. In next six months the government is scheduled to borrow around Rs 2.2 lakh crore from the market. The net borrowing will be around Rs 4 lakh crore for 2011-12. During 2010-11, the government had borrowed around Rs 4.37 lakh crore.
Giving stress on the increased need to go for dated securities on the place of depending on small saving, Gopalan said, 'there is a switch taking place from the NSSF into dated securities. Also we need to work to shore up the cash balance. It has nothing to do with fiscal deficit computation. The target of fiscal deficit remains unchanged.' By adding further he said, 'the borrowing calendar has been programmed in such a way that there is enough credit for the private sector.' Finance Minister Pranab Mukherjee earlier this year had said that the borrowing in the year would not expand the target, and the government would ensure that the private sector was not elbowed out of the market.
However, because of increase in the international energy prices, the government's expenditure has increased, while the revenue generation has been declined significantly, due to slowdown in growth. The government has raised only Rs 1,144 crore from the target of Rs 40,000 via disinvestment, as of now. And the advance tax collection also declined in the second quarter, it grew by 9% in July-September 2011, from 19% in April-June 2011.
To reduce government expenditure, the government has taken number of steps. It had issued instruction to all government departments to reduce all unavoidable expenditures, containing seminars and conferences at five star hotels or abroad, purchase of new vehicles, foreign travel, and appointment of consultants and reduce of new government posts.
The S&P CNX Nifty is currently trading at 4,999.35, down by 16.10 points or 0.32%. The index has touched a high and low of 5,025.55 and 4,952.75 respectively. There were 18 stocks advancing against 32 declines on the index.
The top gainers of the Nifty were Ranbaxy up by 2.45%, Sesa Goa up by 2.43%, Bharti Airtel 2.13%, Ambuja Cement up by 1.97% and Reliance up by 1.17%.
Reliance Capital down by 9.53%, Reliance Communication down by 8.12%, Reliance Infra down by 6.82%, Reliance Power down by 4.45% and Siemens down by 2.73% were the major losers on the index.
The BSE Sensex is currently trading at 16,668.25, down by 29.82 points or 0.18%. The index has touched a high and low of 16,745.16 and 16,495.51 respectively. There were just 10 stocks advancing against 19 declines on the index and one remained unchanged.
The broader indices were outperforming benchmarks; the BSE Mid cap and Small cap indices were up by 0.43% and 0.22% respectively.
The only gaining sectoral indices on the BSE were, CD up by 1.23%, CG up by 0.46%, HC up by 0.18%, TECk up by 0.13% and Oil & Gas up by 0.05%. While, Power down by 0.84%, PSU down by 0.70%, Bankex down by 0.65%, Realty down by 0.60% and FMCG down by 0.52% were the top losers on the index.
The top gainers on the Sensex were Bharti Airtel up by 1.98%, L&T up by 1.26%, Reliance up by 1.21%, JP Associate up by 0.81% and Bajaj Auto up by 0.36%.
On the flip side, ONGC down by 2.32%, Tata Power down by 2.10%, Heromoto Corp down by 1.46%, SBI down by 1.25% and HUL down by 0.96% were the top losers on the index.
Meanwhile, the finance ministry on September 29, said the government in the second half of the current financial year would borrow an additional Rs 52,800 crore from the market, more than the budget estimate, sending bond yields higher. However, the government is hopeful that this additional borrowing will not affect the government's fiscal deficit target of 4.6% of the GDP in 2011-12.
After the meeting the Reserve Bank of India's officers, the Economic Affairs Secretary R Gopalan, said, the government was increasing the gross borrowings by Rs 52,800 crore for the second half. 'The reason is a dip in the small savings collection.' Because of the increase in government borrowing in second half of the fiscal year, triggered an increase in the yields on the ten-year benchmark government bond by 10 basis points. It closed at 8.44% due to the extra borrowing from government was much higher than market expectations.
Actually, the additional borrowings are more than Rs 40,000 crore. The government is targeting to achieve this from the disinvestment of public sector units (PSUs). However, because of the present sluggish situation, meeting the disinvestment target would be difficult. Though, the government is hopeful of meeting this difficult target.
For the current financial year, originally, the government was about to borrow Rs 4.17 lakh crore, but now it will borrow around Rs 4.7 lakh crore, this Rs 53,000 crore increase is due to lower cash balance and decline in collections from small savings schemes due to better interest rate offered by the banks to depositors. The budget calculations were made with an estimate of Rs 24,000 in the National Small Saving Funds (NSSF), however, it declined by Rs 35,000 crore.
In the first six months of current financial year, the government borrowed around Rs 2.5 lakh crore via dated securities, which is 60% of the total estimate made in budget. In next six months the government is scheduled to borrow around Rs 2.2 lakh crore from the market. The net borrowing will be around Rs 4 lakh crore for 2011-12. During 2010-11, the government had borrowed around Rs 4.37 lakh crore.
Giving stress on the increased need to go for dated securities on the place of depending on small saving, Gopalan said, 'there is a switch taking place from the NSSF into dated securities. Also we need to work to shore up the cash balance. It has nothing to do with fiscal deficit computation. The target of fiscal deficit remains unchanged.' By adding further he said, 'the borrowing calendar has been programmed in such a way that there is enough credit for the private sector.' Finance Minister Pranab Mukherjee earlier this year had said that the borrowing in the year would not expand the target, and the government would ensure that the private sector was not elbowed out of the market.
However, because of increase in the international energy prices, the government's expenditure has increased, while the revenue generation has been declined significantly, due to slowdown in growth. The government has raised only Rs 1,144 crore from the target of Rs 40,000 via disinvestment, as of now. And the advance tax collection also declined in the second quarter, it grew by 9% in July-September 2011, from 19% in April-June 2011.
To reduce government expenditure, the government has taken number of steps. It had issued instruction to all government departments to reduce all unavoidable expenditures, containing seminars and conferences at five star hotels or abroad, purchase of new vehicles, foreign travel, and appointment of consultants and reduce of new government posts.
The S&P CNX Nifty is currently trading at 4,999.35, down by 16.10 points or 0.32%. The index has touched a high and low of 5,025.55 and 4,952.75 respectively. There were 18 stocks advancing against 32 declines on the index.
The top gainers of the Nifty were Ranbaxy up by 2.45%, Sesa Goa up by 2.43%, Bharti Airtel 2.13%, Ambuja Cement up by 1.97% and Reliance up by 1.17%.
Reliance Capital down by 9.53%, Reliance Communication down by 8.12%, Reliance Infra down by 6.82%, Reliance Power down by 4.45% and Siemens down by 2.73% were the major losers on the index.
Asian
equity indices were trading mixed; Hang Seng was down by 1.82%, Straits
Times was down by 1.14% and Seoul Composite was down by 0.07%
On the flip side, Shanghai Composite up by 0.02%,
Nikkei 225 was up by 0.19%, Taiwan Weighted up by 0.60%, Jakarta
Composite was up by 0.25% and KLSE Composite was up by 0.01%. 
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