Indian equity indices which showcased awe-inspiring
performances in last two back to back sessions, went on to consolidate
in Tuesday's session by settling just below the neutral line with
marginal losses. It turned out to be an extremely volatile session for
the bourses as they lost a great deal from the high point of the day
amid mounting concerns that the lingering debt crisis in Europe and
swiftly slowing down economic activity not only in developed economies
like US but also in developing economies like China and India may dent
the profitability of local companies. Furthermore the sanguinity in the
local markets also got petered out after investors started to square off
hefty positions from the information technology bellwether Infosys
ahead of its quarterly earnings announcement which will officially mark
the opening of July-September quarterly earnings season. Hefty profit
booking was evident in every component on the IT index and majors like
TCS, Wipro and HCL Tech got pounded in the range of 2-3% amid
expectations that the earnings and margins of the companies have been
adversely impacted by the recent developments on both sides of the
Atlantic. Marketmen also chose to remain on the sidelines ahead of the
release of industrial production (IIP) data for August which is due on
Wednesday, amid speculations that IIP might have grown between 5-5.5%
y-o-y in August as against 3.3% y-o-y growth in July. On the global
front, market participants were nervous that ahead of a vote by
Slovakia's parliament to ratify an expansion of the Euro-zone's rescue
fund. Concerns mounted that Slovakia might not approve a stronger
European bailout fund, which is necessary to beating a path out of the
continent's current debt crisis. Back home, Telecom shares like Bharti
Airtel and Idea Cellular surged by over three percent a day after the
telecom minister Kapil Sibal unveiled the draft national telecom policy
2011 which vows to revamp the sector and strives to achieve cent percent
rural tele-density by 2020.
Earlier on Dalal Street, the benchmarks got a gap up opening as investors were largely influenced by the euphoric mood prevailing in Asian markets. The frontline indices in no time surged to intraday highs but then started the gradual slide for the local markets. The psychological 5,000 (Nifty) and 16,600 (Sensex) levels were proving as good support levels for the key gauges in afternoon trades however, the indices drifted even below those levels. Some choppy moves emerged in the dying moments of trade as the benchmarks see-sawed around the neutral line to eventually settle in the negative territory and break the two session gaining steak. The NSE's 50-share broadly followed index Nifty, took a single digit cut to settle below the crucial 5,000 support level while Bombay Stock Exchange's Sensitive Index Sensex slipped by twenty points and closed below the psychological 16,550 mark. Moreover, the broader markets finished on an optimistic note with moderate gains and went on to outperform their larger peers. On the BSE sectoral space, investors piled up hefty positions in the Consumer Durables counter which rocketed by over a percent as investors remained optimistic that the Consumer Durables companies will clock higher sales as the festive season is around the corner. The Metal, rate sensitive - Auto and Capital Goods pockets too gained from strength to strength and climbed by a percent each. On the flipside, the IT and TECk indices remained the top laggards as they went home with large cuts of 2.70% and 1.44% respectively. Also the Oil & Gas and FMCG pockets slipped by the end of the session and settled with about half a percent losses. The markets consolidated on good volumes of over Rs 1.17 lakh crore while the turnover for NSE F&O segment too remained on the higher side as compared to Monday at over 1.03 lakh core. The market breadth remained optimistic as there were 1558 shares on the gaining side against 1236 shares on the losing side while 115 shares remained unchanged.
Finally, the BSE Sensex lost 20.76 points or 0.13% to settle at 16,536.47, while the S&P CNX Nifty declined by 5.25 points or 0.11% to close at 4,974.35.
The BSE Sensex touched a high and a low of 16,774.12 and 16,510.71 respectively. The BSE Mid cap and Small cap index were up by 0.49% and 0.22% respectively.
The major gainers on the Sensex were Sun Pharma up 4.47%, Tata Motors up 3.64%, NTPC up 3.49%, Bharti Airtel up 3.18% and Jindal Steel up 2.71%. While, Infosys down 3.17%, TCS down 2.26%, Wipro down 2.04%, ONGC down 1.88% and Hindustan Unilever down 1.76% were the major losers on the index.
The top gainers in the BSE sectoral space were Consumer Durables (CD) up 1.16%, Metal up 0.97%, Auto up 0.87%, Capital Goods (CG) up 0.75% and Power up 0.58%. However, IT down 2.70%, TECk down 1.44%, Oil & Gas down 0.56%, FMCG down 0.40% and Realty down 0.04% were the top losers on BSE sectoral space.
Meanwhile, the recent depreciation in Indian rupee has affected the financial health of the government owned oil marketing firms (OMCs), as weakening of rupee against dollar by Re 1 impacts the cost of diesel, kerosene and cooking gas by Rs 8,000 crore per annum.
By expressing concern over the revenue loss of the OMCs due to fall of rupee against dollar, the Petroleum Minister Jaipal Reddy said that the exchange rate which was Rs 46 per US dollar at the beginning of September 2011 is now hovering around Rs 49. 'Weakening by every Re 1, impacts the cost of diesel, PDS kerosene and domestic LPG by Rs 8,000 crore per annum' he added.
The government is committed to protect the interests of common man and efforts are being made to minimize the impact of rising crude prices. The average price of the Indian basket of crude oil, which was $69.76 per barrel in 2009-10, has shot up to $111 per barrel, Reddy said.
In order to minimize the impact of hovering international crude oil prices on consumers, the government has removed the custom duty on crude oil and reduced it for petroleum product by 5%, and excise duty on diesel by Rs 2.6 per litre. However, to reduce the revenue loss of the OMCs, government has also allowed them to increase the prices of diesel, LPG cooking gas and kerosene by Rs 3 per litre, Rs 50 per cylinder and Rs 2 per litre respectively.
Despite the surge in selling prices of the petroleum products, the OMCs are still making revenue loss of Rs 271 crore per day, and with this pace, the OMCs are expected to incur revenue loss of Rs 1,21,000 crore in current financial year. The under recoveries have affected the financial health of OMCs, and diminishing cash flows have reduced resource generation for expansion and modernization. By adding further Reddy said, 'OMCs are forced to borrow even for their working capital requirements.'
'If their financial health deteriorates on account of under recoveries, their ability to discharge assigned task of supplying the entire country with petroleum products would suffer,' Reddy said. The good financial health of OMCs is pre-requisite for ensuring long term energy security in the country.
The S&P CNX Nifty touched high and low of 5,045.10 and 4,964.00, respectively.
All the Asian equity indices ended the day's trade in the positive terrain on Tuesday as investors followed a rally on Wall Street sparked by a French and German promise to back up beleaguered euro-zone banks. Marketmen in the region have been in a buying mood for several sessions after fears that a likely Greek default has eased a bit. Meanwhile, Chinese, benchmark Shanghai Composite edged higher as Chinese banks surged Tuesday after a government investment arm bought stakes in the country's major lenders moreover, Taiwan stocks closed with a gain of over two and a half percent, with financial shares jumping 3.24 percent on hopes that European government action would protect banks there from the debt crisis and stop it spreading. While, South Korean shares closed 1.62 percent higher on Tuesday, trimming earlier gains sparked by fresh hopes for a solution to the euro-zone debt crisis.
Earlier on Dalal Street, the benchmarks got a gap up opening as investors were largely influenced by the euphoric mood prevailing in Asian markets. The frontline indices in no time surged to intraday highs but then started the gradual slide for the local markets. The psychological 5,000 (Nifty) and 16,600 (Sensex) levels were proving as good support levels for the key gauges in afternoon trades however, the indices drifted even below those levels. Some choppy moves emerged in the dying moments of trade as the benchmarks see-sawed around the neutral line to eventually settle in the negative territory and break the two session gaining steak. The NSE's 50-share broadly followed index Nifty, took a single digit cut to settle below the crucial 5,000 support level while Bombay Stock Exchange's Sensitive Index Sensex slipped by twenty points and closed below the psychological 16,550 mark. Moreover, the broader markets finished on an optimistic note with moderate gains and went on to outperform their larger peers. On the BSE sectoral space, investors piled up hefty positions in the Consumer Durables counter which rocketed by over a percent as investors remained optimistic that the Consumer Durables companies will clock higher sales as the festive season is around the corner. The Metal, rate sensitive - Auto and Capital Goods pockets too gained from strength to strength and climbed by a percent each. On the flipside, the IT and TECk indices remained the top laggards as they went home with large cuts of 2.70% and 1.44% respectively. Also the Oil & Gas and FMCG pockets slipped by the end of the session and settled with about half a percent losses. The markets consolidated on good volumes of over Rs 1.17 lakh crore while the turnover for NSE F&O segment too remained on the higher side as compared to Monday at over 1.03 lakh core. The market breadth remained optimistic as there were 1558 shares on the gaining side against 1236 shares on the losing side while 115 shares remained unchanged.
Finally, the BSE Sensex lost 20.76 points or 0.13% to settle at 16,536.47, while the S&P CNX Nifty declined by 5.25 points or 0.11% to close at 4,974.35.
The BSE Sensex touched a high and a low of 16,774.12 and 16,510.71 respectively. The BSE Mid cap and Small cap index were up by 0.49% and 0.22% respectively.
The major gainers on the Sensex were Sun Pharma up 4.47%, Tata Motors up 3.64%, NTPC up 3.49%, Bharti Airtel up 3.18% and Jindal Steel up 2.71%. While, Infosys down 3.17%, TCS down 2.26%, Wipro down 2.04%, ONGC down 1.88% and Hindustan Unilever down 1.76% were the major losers on the index.
The top gainers in the BSE sectoral space were Consumer Durables (CD) up 1.16%, Metal up 0.97%, Auto up 0.87%, Capital Goods (CG) up 0.75% and Power up 0.58%. However, IT down 2.70%, TECk down 1.44%, Oil & Gas down 0.56%, FMCG down 0.40% and Realty down 0.04% were the top losers on BSE sectoral space.
Meanwhile, the recent depreciation in Indian rupee has affected the financial health of the government owned oil marketing firms (OMCs), as weakening of rupee against dollar by Re 1 impacts the cost of diesel, kerosene and cooking gas by Rs 8,000 crore per annum.
By expressing concern over the revenue loss of the OMCs due to fall of rupee against dollar, the Petroleum Minister Jaipal Reddy said that the exchange rate which was Rs 46 per US dollar at the beginning of September 2011 is now hovering around Rs 49. 'Weakening by every Re 1, impacts the cost of diesel, PDS kerosene and domestic LPG by Rs 8,000 crore per annum' he added.
The government is committed to protect the interests of common man and efforts are being made to minimize the impact of rising crude prices. The average price of the Indian basket of crude oil, which was $69.76 per barrel in 2009-10, has shot up to $111 per barrel, Reddy said.
In order to minimize the impact of hovering international crude oil prices on consumers, the government has removed the custom duty on crude oil and reduced it for petroleum product by 5%, and excise duty on diesel by Rs 2.6 per litre. However, to reduce the revenue loss of the OMCs, government has also allowed them to increase the prices of diesel, LPG cooking gas and kerosene by Rs 3 per litre, Rs 50 per cylinder and Rs 2 per litre respectively.
Despite the surge in selling prices of the petroleum products, the OMCs are still making revenue loss of Rs 271 crore per day, and with this pace, the OMCs are expected to incur revenue loss of Rs 1,21,000 crore in current financial year. The under recoveries have affected the financial health of OMCs, and diminishing cash flows have reduced resource generation for expansion and modernization. By adding further Reddy said, 'OMCs are forced to borrow even for their working capital requirements.'
'If their financial health deteriorates on account of under recoveries, their ability to discharge assigned task of supplying the entire country with petroleum products would suffer,' Reddy said. The good financial health of OMCs is pre-requisite for ensuring long term energy security in the country.
The S&P CNX Nifty touched high and low of 5,045.10 and 4,964.00, respectively.
The
top gainers on the Nifty were Sun Pharma up 3.88%, NTPC up 3.22%, Sesa
Goa up 3.17%, Tata Motors up 2.64% and SAIL up 2.41%. On the flip side,
Infosys down 3.50%, HCL Tech down 2.95%, TCS down 2.79%, Wipro down
2.41% and ONGC down 2.11% were the top losers on the index.
The European markets were trading in red. France's
CAC 40 lost 0.76%, Britain's FTSE down by 0.90%, and Germany's DAX
advanced by 0.79%. All the Asian equity indices ended the day's trade in the positive terrain on Tuesday as investors followed a rally on Wall Street sparked by a French and German promise to back up beleaguered euro-zone banks. Marketmen in the region have been in a buying mood for several sessions after fears that a likely Greek default has eased a bit. Meanwhile, Chinese, benchmark Shanghai Composite edged higher as Chinese banks surged Tuesday after a government investment arm bought stakes in the country's major lenders moreover, Taiwan stocks closed with a gain of over two and a half percent, with financial shares jumping 3.24 percent on hopes that European government action would protect banks there from the debt crisis and stop it spreading. While, South Korean shares closed 1.62 percent higher on Tuesday, trimming earlier gains sparked by fresh hopes for a solution to the euro-zone debt crisis.
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