Extending yesterday's losses, the domestic benchmarks
have made a gap-down opening on the back of sustained selling by funds,
triggered by stiff opposition to policy reform opening up the
multi-brand retail sector to foreign direct investment and a weakening
trend in Asian markets on renewed worries over the European debt crisis,
mainly depressed the trading sentiment. Moreover, Standard & Poor's
cut credit ratings on US lenders from Bank of America Corp. to Goldman
Sachs Group Inc., Citigroup Inc., and Morgan Stanley had their long-term
credit grades cut to A- from A at S&P. Back home, Sensex breached
its crucial 16,000 mark as opposition mounted to the government's move
to allow 51% FDI in India's multi-brand retail sector. Stocks of
consumer durables, capital goods, power and refinery sectors remained
under selling pressure, dragging the Sensex down. However, traders
eyeing the quarterly GDP numbers to be announced later in the day. The
street is apprehensive of the September quarter GDP coming to its lowest
in nine quarters. The economy grew at 7.7% in the Q1 but in this
quarter the numbers are likely to fall sharply lower to around 7%,
anything lower than that will dampen investors' morale, while a slightly
better number can give a push to the markets.
The BSE Sensex opened at 15,868.96; about 139 points lower compared to its previous closing of 16,008.34, and has touched a high and a low of 15,951.24 and 15,849.57 respectively.
The index is currently trading at 15,935.40, down by 72.94 points or 0.46%. There were 11 stocks advancing against 19 declines on the index.
The overall market breadth has made a negative start with 42.93% stocks advancing against 52.98% declines. The broader indices too were bleeding in the early trade; the BSE Mid cap and Small cap indices were down by 0.36% and 0.21% respectively.
CG down by 1.17%, CD down by 1.10%, Realty down by 0.72%, Power down by 0.71% and Oil and Gas down by 0.60%, were the top losers on the index. While, there were no gainers on the index.
Sun Pharma up by 1.58%, HUL up by 1.29%, Maruti Suzuki up by 0.86%, Hero Honda up by 0.58% and TCS up by 0.32% remained the major gainers on the index while, BHEL down by 2.21%, ICICI Bank down by 1.59%, Tata Power down by 1.41%, Jaiprakash Associates down by 1.19% and Jindal Steel down by 1.04% were the top losers on the index.
Meanwhile, petrol prices are likely to be reduced by another up to Re 1 per litre this week, on the back of declining trend seen in the global prices. The Oil marketing companies (OMCs), which are free to decide petrol prices, had announced a cut of Rs 2.22 a litre earlier this month, the first reduction in retail prices in nearly three years and the first since prices were decontrolled in June 2010.
Nevertheless, the price of aviation turbine fuel (ATF) is expected to rise by around 3% from the existing Rs 62,310 per kilolitre in Delhi, putting further pressure on loss-making airlines. On diesel too, the losses of companies are expected to increase by another Rs 2 a litre from the current Rs 10.17 a litre. Internationally, both ATF and diesel are having a price trend different to petrol.
According to industry expert, the international petrol price trend for this fortnight can allow the OMCs to make a cut of up to Re 1 a litre, inclusive of taxes. This is despite a further weakening of the rupee against the dollar in the current fortnight. Compared to an average Rs 49.6 against the dollar in first fortnight of the month, the rupee has averaged Rs 51.6 this fortnight. However, the international price drop is steeper, making a price cut possible.
Normally the OMCs monitor petrol prices on a fortnightly basis. They work out the prices based on their trade parity (80 per cent import price weight and 20 per cent export price weight) for the previous fortnight. Ever since the decontrol, petrol prices have risen nearly 39% to Rs 66.42 a litre in Delhi. In the same period, diesel, which is still regulated, saw prices increase by 7.4% to Rs 40.9 a litre. The gap between petrol and diesel prices, which used to be 25.8% before the decontrol, has now extended to 66.42%.
The widening price gap between petrol and diesel has slowed the growth of petrol consumption, which has recently fallen behind that of diesel. Compared to double-digit growth in recent years, consumption of petrol has been growing at 4.8%, while that of diesel has been growing at 5.9%.
The S&P CNX Nifty opened at 4,766.15; about 39 points lower compared to its previous closing of 4,805.10, and has touched a high and a low of 4,787.00 and 4,754.80 respectively.
The index is currently trading at 4,786.85, down by 18.25 points or 0.38%. There were just 18 stocks advancing against 32 declines on the index.
The gainers of the Nifty were Sun Pharma up by 1.33%, GAIL up by 1.00%, HUL up by 1.00%, Power Grid up by 1.00% and Reliance Infra up by 0.95%.
On the flip side, KLSE Composite was up 11.67 points or 0.81% to 1,456.39 and Jakarta Composite was up by 5.91 points or 0.16% to 3,693.68.
The BSE Sensex opened at 15,868.96; about 139 points lower compared to its previous closing of 16,008.34, and has touched a high and a low of 15,951.24 and 15,849.57 respectively.
The index is currently trading at 15,935.40, down by 72.94 points or 0.46%. There were 11 stocks advancing against 19 declines on the index.
The overall market breadth has made a negative start with 42.93% stocks advancing against 52.98% declines. The broader indices too were bleeding in the early trade; the BSE Mid cap and Small cap indices were down by 0.36% and 0.21% respectively.
CG down by 1.17%, CD down by 1.10%, Realty down by 0.72%, Power down by 0.71% and Oil and Gas down by 0.60%, were the top losers on the index. While, there were no gainers on the index.
Sun Pharma up by 1.58%, HUL up by 1.29%, Maruti Suzuki up by 0.86%, Hero Honda up by 0.58% and TCS up by 0.32% remained the major gainers on the index while, BHEL down by 2.21%, ICICI Bank down by 1.59%, Tata Power down by 1.41%, Jaiprakash Associates down by 1.19% and Jindal Steel down by 1.04% were the top losers on the index.
Meanwhile, petrol prices are likely to be reduced by another up to Re 1 per litre this week, on the back of declining trend seen in the global prices. The Oil marketing companies (OMCs), which are free to decide petrol prices, had announced a cut of Rs 2.22 a litre earlier this month, the first reduction in retail prices in nearly three years and the first since prices were decontrolled in June 2010.
Nevertheless, the price of aviation turbine fuel (ATF) is expected to rise by around 3% from the existing Rs 62,310 per kilolitre in Delhi, putting further pressure on loss-making airlines. On diesel too, the losses of companies are expected to increase by another Rs 2 a litre from the current Rs 10.17 a litre. Internationally, both ATF and diesel are having a price trend different to petrol.
According to industry expert, the international petrol price trend for this fortnight can allow the OMCs to make a cut of up to Re 1 a litre, inclusive of taxes. This is despite a further weakening of the rupee against the dollar in the current fortnight. Compared to an average Rs 49.6 against the dollar in first fortnight of the month, the rupee has averaged Rs 51.6 this fortnight. However, the international price drop is steeper, making a price cut possible.
Normally the OMCs monitor petrol prices on a fortnightly basis. They work out the prices based on their trade parity (80 per cent import price weight and 20 per cent export price weight) for the previous fortnight. Ever since the decontrol, petrol prices have risen nearly 39% to Rs 66.42 a litre in Delhi. In the same period, diesel, which is still regulated, saw prices increase by 7.4% to Rs 40.9 a litre. The gap between petrol and diesel prices, which used to be 25.8% before the decontrol, has now extended to 66.42%.
The widening price gap between petrol and diesel has slowed the growth of petrol consumption, which has recently fallen behind that of diesel. Compared to double-digit growth in recent years, consumption of petrol has been growing at 4.8%, while that of diesel has been growing at 5.9%.
The S&P CNX Nifty opened at 4,766.15; about 39 points lower compared to its previous closing of 4,805.10, and has touched a high and a low of 4,787.00 and 4,754.80 respectively.
The index is currently trading at 4,786.85, down by 18.25 points or 0.38%. There were just 18 stocks advancing against 32 declines on the index.
The gainers of the Nifty were Sun Pharma up by 1.33%, GAIL up by 1.00%, HUL up by 1.00%, Power Grid up by 1.00% and Reliance Infra up by 0.95%.
Ranbaxy
down by 3.97%, BHEL down by 1.91%, SAIL down by 1.73%, Siemens by 1.58%
and HCL Tech was down by 1.57%, were the major losers on the index.
Most of the Asian equity indices were trading in
the red; Shanghai Composite was down 56.07 points or 2.32% to 2,356.33,
Hang Seng was down 344.99 points or 1.89% to 17,911.21, Nikkei 225 was
down 105.19 points or 1.24% to 8,372.63, Straits Times was down 2.78
points or 0.10% to 2,685.32, Seoul Composite was down 16.58 points or
0.89% to 1,839.94 and Taiwan Weighted was down by 128.60 points or 1.84%
to 6,860.05. On the flip side, KLSE Composite was up 11.67 points or 0.81% to 1,456.39 and Jakarta Composite was up by 5.91 points or 0.16% to 3,693.68.
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