After getting a modest start, local bourses have now capitulated to the selling pressure as investor's reluctance post previous session's rally has minced the sentiment of trade street in early deals. Investors seem to be in fringe as relief over Greece's latest bailout has turned to doubts that the debt-stricken country can keep to its austerity programme. Market men are undecided whether they should buy more or wait for a pullback after the recent uptake of the bourses. However, volatility that has crept into the markets on the penultimate day of the F&O expiry series has kept the undertone cautious. On the global front, U.S. stocks ended little changed on Tuesday, paring gains after the Dow topped 13,000 for the first time since May 2008, and as higher oil prices damped prospects for the economy. Meanwhile, Asian shares are doing little to provide any direction as the regional counterparts are exhibiting mixed trend. However, the US future indices too are showing an uptick in the screen trade.
Back home, stocks from Oil & Gas, Information Technology and Health care counters have sustained their gains, however, stocks from Bankex, Consumer Durable and Realty counters are leading the markets from the bottom. The 30 share barometer index of BSE-Sensex- after slipping over 25 points is currently trading sub 18400 mark. Similarly, 50 share index of NSE-Nifty-too is trading sub 5600 mark. The broader indices too have succumbed to the selling pressure. The overall market breadth on BSE is supporting advances which are currently outdoing declines in the ratio of 1235:1076, while 116 shares remained unchanged.
The BSE Sensex is currently trading at 18,391.70, down by 36.91 points or 0.20%. The index has touched a high and a low of 18,523.78 and 18,369.25 respectively. There were 16 stocks advancing against 14 declinning one's on the index.
The broader indices too succumbed to the selling pressure; the BSE Mid cap and Small cap indices were down by 0.33% and 0.09% respectively.
The top gaining sectoral indices on the BSE were Oil and Gas up by 1.39%, IT up by 0.59%, Health Care up by 0.46%, Power up by 0.28% and TECk up by 0.27%. On the flip side, Bankex down by 1.49%, CD down by 0.89%, Realty down by 0.66%, Capital Goods down by 0.62% and FMCG down by 0.47% remained the only losers on the index.
The top gainers on the Sensex were ONGC up by 2.02%, Sun Pharma up by 1.90%, RIL up by 1.38%, TCS up by 0.99% and Tata Power up by 0.91% and.
On the flip side, SBI down by 3.38%, DLF down by 2.32%, ICICI Bank down by 2.22%, Sterlite Industries down by 1.56% and L&T down by 1.41% were the top losers on the Sensex.
Meanwhile, any reduction in petrol prices has been ruled out by the Petroleum and Natural Gas Minister S Jaipal Reddy. The minister stated that it is not possible to reduce prices especially when oil marketing companies are suffering huge losses due to fluctuations in the prices of crude in the international market. The losses are estimated to be around Rs 1.50 lakh crore.
Reddy said, there is constant pressure from the public and political parties to not to hike diesel, kerosene and LPG prices, but that isn't feasible given the crisis in Iran and Arab countries, the economic slowdown in European countries and the hiked dollar exchange rate, making global crude oil expensive. Hence, there is no option other than increasing the prices on par with those in the international markets.
Admitting that the hike in fuel prices will have to be eventually borne by the common man, the minister said that elections cannot be used as an excuse by politicians to keep the costs subsidized. Reddy stated that if elections were the criteria to not raise prices, then fuel prices could never be hiked as India being the world's biggest democratic country, is faced with elections every year.
Petrol prices in India were liberalized a year ago and have climbed as international oil prices have risen. The government still subsidizes retail prices of diesel, kerosene and cooking gas.
The S&P CNX Nifty is currently trading at 5,592.00, down by 15.15 points or 0.27%. The index has touched a high and a low of 5,629.95 and 5,584.70 respectively. There were 23 stocks advancing against 27 declining one's on the index.
The top gainers of the Nifty were ONGC up by 2.11%, Sesa Goa up by 1.93%, BPCL up by 1.67%, Sun Pharmaceuticals up by 1.66% and PowerGird Corporation up by 1.45%.
On the flip side, SBI down by 3.49%, Axis Bank down by 2.53%, ICICI Bank down by 2.23%, DLF down by 2.19% and M&M down by 1.63%, were the major losers on the index.
Most of the Asian equity indices were trading in the red; Hang Seng down by 0.08%, Jakarta Composite declined 0.34%, KLSE Composite slid 0.15%, Straits Times descended by 0.53% and Seoul Composite shed 0.19%.
On the flip side, Shanghai Composite gained 0.45%, Nikkei 225 added0.76% and Taiwan Weighted rose 0.87%.
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