Unmoved by the worse than expected August month
Inflation data and negative opening of the European markets, local
equity markets have peeled off major part of its losses, with the widely
followed 50 share index even clawing back the green zone. Plucky
investors which have indulged in bargain buying amidst the hopes that
the European leaders would take action soon to ease the two-year-old
sovereign debt crisis, have mainly led to the bourses recovery. On the
global front, after positive close of Wallstreet on previous session,
the Asian equities too are endeavoring to recuperate some of its losses.
However, the European markets have dropped in early trade after a
report casted doubt on the idea China would provide financial support to
Italy as Chinese premier said economies "must put their own houses in
order" and not rely on bailouts from China. Meanwhile, the US future
indices were showing a downtick in the screen trade. Back home, the
August month inflation which came at 9.78% for the month of August 2011
as compared to 9.22% seen in the previous month and 8.87% during the
corresponding month of the previous year sparked fears that RBI would
once again deliver its rate increase in its 18-month-long tightening
cycle on Friday. However, the market did not seem to react much to it
since the negatives were already factored in since the commencement of
the trade. Tweaking the momentum of the bourses are the stocks from the
Information technology, TECk and Metal counters which are up with
sparkling gains. Meanwhile, the stocks from the Capital Goods, Realty
and FMCG on the BSE sectoral front have featured among the worst
performers. Sensex hovering around its neutral line is down by mere 3
points, while Nifty-reclaiming the lost ground is at a sniffing distance
from its 5000 level. The broader indices though are still trading down
in red but have recouped most of its losses. The overall market breadth
on BSE is now in the favour of declines which have outpaced advances in
the ratio of 1278:1223, while 91 shares have remained unchanged.
The BSE Sensex is currently trading at 16,463.77, down by 3.67 points or 0.02%. The index has touched a high and low of 16,551.59 and 16,387.38 respectively. There were 15 stocks advancing against 15 declines on the index.
The broader indices still were down in red; the BSE Mid cap and Small cap index were down by 0.33% and 0.12% respectively.
The top gaining sectoral indices on the BSE were, IT up by 2.33%, TECk up by 1.33%, Metal up by 0.61%. Auto up by 0.47% and Oil & Gas up by 0.34%. While, CG down by 1.16%, Realty down by 0.77%, FMCG down by 0.68%, CD down by 0.60% and Power down by 0.50% were the top losers on the index.
The top gainers on the Sensex were Infosys up by 3.07%, Wipro up by 2.47%, Jaiprakash Associate up by 1.56%, Jindal Steel up by 1.53% and Tata Motors up by 1.43%.
On the flip side, Tata Power down by 2.44%, L&T down by 2.00%, Bharti Airtel down by 1.82%, Hero Motocorp down by 1.52% and HDFC down by 1.42% were the top losers on the Sensex.
Meanwhile, the Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee is scheduled to meet on September 16, and it is expected to consider limiting supply of subsidized domestic cooking gas to 4-6 per household in a year.
In the last meeting on August 8, EGoM had considered the suggestions made by task force on Direct Transfer of Subsidies on kerosene, LPG and Fertilizer. However, it delayed its decision on restricting the supply of subsidized LPG.
If EGoM approves the recommendation of restricted supply of subsidized LPG, then every household in Delhi will get 4 to 6 LPG cylinders at subsidized rates of Rs 395.35 and they have to pay market price of Rs 666 per LPG cylinder for additional cylinders. However, the limited supply of subsidized LPG would be for those families who own a car, two wheeler, house or figures in Income-Tax list.
The 14.2 kg LPG cylinder generally lasts a household for 45 to 60 days, based on this calculation six LPG cylinder is considerate to be enough to see a family needs for a year. As per the data, LPG distributors of public sector companies shows that huge number of households are taking around 20 to 30 cylinders every year.
This indicates that the large numbers of diversion of subsidized LPG cylinders are used in commercial establishments like restaurants and dhabas and ad auto fuel. The LPG for commercial proposes sold at different market price and packed in different cylinder.
This move of government is expected to reduce the supply of subsidized LPG cylinders which would help government own oil marketing companies to reduce their losses which they occur for selling LPG at subsidized rates. The OMCs loses around Rs 63 core per day on selling LPG at subsidized rates.
The panel of fuel also considers the revenue loss that OMCs are occurring selling diesel and kerosene at subsidized rates. The government owned OMCs loses around Rs 5.14 on every litre of diesel, Rs 24.42 on every litre of kerosene and at current rate OMCs are expected to make combined revenue loss of Rs 108,745 crore in current financial year.
The EGoM is also expected to take decision on how this revenue loss would be reduced. It may also take decision on the ongoing formula if sharing loss should continue or be changed.
The S&P CNX Nifty is currently trading at 4,948.10, higher by 7.15 points or 0.14%. The index has touched a high and low of 4,969.70 and 4,917.40 respectively. There were 26 stocks advancing against 24 declines on the index.
The top gainers of the Nifty were Infosys up by 3.28%, Wipro up by 2.55%, SAIL up by 2.16%, Reliance Capital up by 1.99% and JP Associate up by 1.95%.
On the flip side, Tata Power down by 2.60%, L&T down by 1.91%, Cipla down by 1.64%, Bharti Airtel down by 1.59% and ACC down by 1.56% were the major losers on the index.
The European indices as expected have got to a negative start, CAC 40 declined 0.98, DAX down by 1.02% and FTSE 100 down by 0.29%.
The BSE Sensex is currently trading at 16,463.77, down by 3.67 points or 0.02%. The index has touched a high and low of 16,551.59 and 16,387.38 respectively. There were 15 stocks advancing against 15 declines on the index.
The broader indices still were down in red; the BSE Mid cap and Small cap index were down by 0.33% and 0.12% respectively.
The top gaining sectoral indices on the BSE were, IT up by 2.33%, TECk up by 1.33%, Metal up by 0.61%. Auto up by 0.47% and Oil & Gas up by 0.34%. While, CG down by 1.16%, Realty down by 0.77%, FMCG down by 0.68%, CD down by 0.60% and Power down by 0.50% were the top losers on the index.
The top gainers on the Sensex were Infosys up by 3.07%, Wipro up by 2.47%, Jaiprakash Associate up by 1.56%, Jindal Steel up by 1.53% and Tata Motors up by 1.43%.
On the flip side, Tata Power down by 2.44%, L&T down by 2.00%, Bharti Airtel down by 1.82%, Hero Motocorp down by 1.52% and HDFC down by 1.42% were the top losers on the Sensex.
Meanwhile, the Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee is scheduled to meet on September 16, and it is expected to consider limiting supply of subsidized domestic cooking gas to 4-6 per household in a year.
In the last meeting on August 8, EGoM had considered the suggestions made by task force on Direct Transfer of Subsidies on kerosene, LPG and Fertilizer. However, it delayed its decision on restricting the supply of subsidized LPG.
If EGoM approves the recommendation of restricted supply of subsidized LPG, then every household in Delhi will get 4 to 6 LPG cylinders at subsidized rates of Rs 395.35 and they have to pay market price of Rs 666 per LPG cylinder for additional cylinders. However, the limited supply of subsidized LPG would be for those families who own a car, two wheeler, house or figures in Income-Tax list.
The 14.2 kg LPG cylinder generally lasts a household for 45 to 60 days, based on this calculation six LPG cylinder is considerate to be enough to see a family needs for a year. As per the data, LPG distributors of public sector companies shows that huge number of households are taking around 20 to 30 cylinders every year.
This indicates that the large numbers of diversion of subsidized LPG cylinders are used in commercial establishments like restaurants and dhabas and ad auto fuel. The LPG for commercial proposes sold at different market price and packed in different cylinder.
This move of government is expected to reduce the supply of subsidized LPG cylinders which would help government own oil marketing companies to reduce their losses which they occur for selling LPG at subsidized rates. The OMCs loses around Rs 63 core per day on selling LPG at subsidized rates.
The panel of fuel also considers the revenue loss that OMCs are occurring selling diesel and kerosene at subsidized rates. The government owned OMCs loses around Rs 5.14 on every litre of diesel, Rs 24.42 on every litre of kerosene and at current rate OMCs are expected to make combined revenue loss of Rs 108,745 crore in current financial year.
The EGoM is also expected to take decision on how this revenue loss would be reduced. It may also take decision on the ongoing formula if sharing loss should continue or be changed.
The S&P CNX Nifty is currently trading at 4,948.10, higher by 7.15 points or 0.14%. The index has touched a high and low of 4,969.70 and 4,917.40 respectively. There were 26 stocks advancing against 24 declines on the index.
The top gainers of the Nifty were Infosys up by 3.28%, Wipro up by 2.55%, SAIL up by 2.16%, Reliance Capital up by 1.99% and JP Associate up by 1.95%.
On the flip side, Tata Power down by 2.60%, L&T down by 1.91%, Cipla down by 1.64%, Bharti Airtel down by 1.59% and ACC down by 1.56% were the major losers on the index.
Most
of the Asian equity indices were trading in the red; Hang Seng down by
1.02%, Jakarta Composite was down by 2.20%, KLSE Composite was down by
0.73%, Nikkei 225 was down by 1.14%, Seoul Composite was down by 3.52%
and Taiwan Weighted was down by 2.20%.
On the flip side, Shanghai Composite was up by
4.02 points or 0.16% and Straits Times was down by 0.26% remained the
only gainers amongst the Asian pack. The European indices as expected have got to a negative start, CAC 40 declined 0.98, DAX down by 1.02% and FTSE 100 down by 0.29%.
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