TECHNICAL CORRECTION

Barometer gauges tracing weak momentum of regional counterparts have dipped to day's low point as traders continue to pocket profits after last session's strong rally. However, this succumb may also evolve as technical correction after the recent run up of the bourses.

On the global front, Asian stocks fell, with the region's benchmark index dropping from a six month high, as European leaders remained divided over a Greek rescue and Moody's Investors Service said it may downgrade global banks.  Concern that Greece will miss a debt payment next month grew as a decision slated for yesterday on 130 billion euros ($170 billion) of aid was postponed to February 20. Meanwhile, the US future indices too were trading negative on the screen trade.

Back home, stocks from Power, Capital Goods and Realty counters have put up a commendable show amidst sluggish trade, while stocks from Oil & Gas, Metal and Consumer Durable counters are depicting underlying weakness of the bourses. The 30 share volatile index of BSE-Sensex-offloading over a century of points is currently trading above 18100 mark. While, the widely followed 50 share index of NSE-Nifty-declining over 25 points is trading sub 5500 mark. However, the broader indices holding their fort were still trading on a positive note. The overall market breadth on BSE is in the favour of advances which thrashed declines in the ratio of 1320:1045, while 108 shares remained unchanged.

The BSE Sensex has plunged by 101.36 points or 0.56% and is currently trading at 18,101.05. The index has touched a high and a low of 18,180.42 and 18,094.73 respectively. There were 15 stocks advancing against 15 declining ones on the index.

The broader indices, however, are still trading in fine contour; the BSE Mid cap and Small cap indices spurted by 0.54% and 0.78% respectively.

The top gaining sectoral indices on the BSE were, Power up by 1.85%, CG up by 1.24%, Realty up by 1.15%, PSU up by 0.27% and TECk up by 0.07%. While, Oil and Gas down by 1.44%, Metal down by 1.08% and CD down by 0.88%, Bankex down by 0.86% and Auto down by 0.69% were the top losers on the index.

The top gainers on the Sensex were Tata Power up by 3.58%, BHEL up by 3.36%, Jindal Steel up by 3.15%, Cipla up by 1.90% and Hero MotoCorp up by 1.77%.

On the flip side, Hindalco was down by 3.57%, Coal India down by 3,55%, Sterlite Industries down by 3.08%, RIL down by 2.88% and Tata Motors was down by 2.44% were the top losers on the Sensex.

Meanwhile, in a bid to push the economy on the path of growth and arrest any further economic slowdown, the government has announced a series of policies. A plethora of activities, apparently at the instance of the Prime Minister's Office (PMO), have taken place in the economic ministries to send a strong signal that the government is keen to arrest further slackening of GDP growth. The recent policies announced by the government include assured supply of coal to power companies, relaxation of spectrum rules and removing environmental hurdles to the mega hydel project.

At the instance of the PMO, Coal India (CIL) was told to sign agreements for supply of fuel to power projects commissioned up to December 2011. CIL will sign fuel supply agreement (FSA) for a period of 20 years, by the end of March. The company is expected to import coal in case of shortages. The move is expected to help an estimated capacity of over 50,000 MW and has broken an old logjam between CIL and private operators. The government is also considering customs duty waiver on coal imports to reduce the impact of a steep rise in international prices of the fuel. These decisions are expected to remove major hurdles in the supply of coal thus ensuring a more regular supply of power in the country.

In another important decision, the government has said that all telecom service providers would be allowed to hold higher spectrum of up to 10 MHz. Current prescribed limit is 6.2 MHz of GSM spectrum. The decision is expected to have a positive impact on the sector and benefit old GSM operators in particular. Overruling ecological concerns, the Environment Minister, Jayanthi Natarajan, also gave the green signal for construction of a 1,750 MW Demwe Lower Hydro Electric hydel project in Arunachal Pradesh on Lohit river.

Further, to boost the National Manufacturing Policy, the government announced that units in the proposed mega industrial enclaves will be given highest priority for environmental clearances. Besides, the procedures for green approvals have been relaxed, exempting the individual units within proposed National Manufacturing and Investment Zones (NMIZs) from public hearings, once they have been held for the entire zone, provided they are notified by the concerned state government.

The proposed disinvestment plans of the government also saw some movement yesterday when the Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee decided to offload 5% equity in the energy major ONGC through the auction route. The decision would help the government in mopping up Rs 12,000 crore from disinvestment within the current financial year. With less than one-and-half months to go for the current fiscal, the government managed to raise only Rs 1,145-crore from stake sale in Power Finance Corporation (PFC). Disinvestment in BHEL however, was deferred.

The S&P CNX Nifty is currently trading at 5,496.00, lower by 35.95 points or 0.65%.  The index has touched a high and a low of 5,522.75 and 5,495.95 respectively. There were 22 stocks advancing against 27 declining one's on the index, while 1 stock remained unchanged.

The top gainers of the Nifty were Tata Power up by 3.49%, BHEL up by 3.27%, Jindal Steel up by 3.12%, Cipla up by 2.07% and Cairn India up by 2.06%,.

On the flip side, Hindalco down by 4.00%, Coal India down by 3.55%, Tata Motors down by 3.18%, Sterlite Industries down by 3.04% and RIL down by 3.02% were the major losers on the index.

All the Asian equity indices were trading in the red; Shanghai Composite declined 0.55%, Hang Seng slid 0.60%, Jakarta Composite down by 0.53%, KLSE Composite shed 0.73%, Nikkei 225 trimmed 0.25%, Straits Times plunged 0.62%, Seoul Composite plunged 1.23% and Taiwan Weighted plummeted 1.39%.