Indian equity markets have steadied in the mid-morning session though trading in a tight range with Sensex and Nifty not showing any impulse to breach the major support levels of 17250 and 5250 respectively, lacking any supportive cues. The high flier of last session IT sector is suffering profit booking and is under pressure since morning after one of the gauge heavyweight Wipro came up with slightly lower than expected numbers coupled with forecast of muted revenue growth for its key IT services unit due to a fragile global economy. The company's IT services unit reported sales of $1.54 billion in January-March, rising 2 per cent from the December quarter. The telecom space that has suffered major drubbing in last session was showing sign of recovery as the telecom regulator has estimated that its recommendations for a steep hike in the pricing of 2G spectrum translates into a mere 1.5 to 2 paise per minute jump in call tariffs annually. The OMC's too have continued their gaining momentum after government agreed to make the diesel prices market determined.
The BSE Sensex is currently trading at 17,223.16, up by 15.87 points or 0.09%. The index has touched a high and low of 17,249.61 and 17,174.73 respectively. There were 20 stocks advancing against 10 declines on the index.
The broader indices recovering from their last session's decline were showing some smart moves outperforming the benchmarks; the BSE Mid cap and Small cap indices were up by 0.37% and 0.51% respectively.
The top gaining sectoral indices on the BSE were, Auto up by 0.73%, HC up by 0.46%, Bankex up by 0.44%, FMCG up by 0.39% and Metal was up by 0.38%. While, IT down by 1.75%, TECk down by 1.04%, Realty down by 0.47%, CD down by 0.42% and Power down by 0.08% were the losers.
The top gainers on the Sensex were Bharti Airtel up by 2.33%, Bajaj Auto up by 2.01%, Hero MotoCorp up by 1.92%, Sterlite Industries up by 1.37% and Maruti Suzuki was up by 1.36%.
On the flip side, Wipro down by 7.19%, Gail India down by 3.17%, TCS down by 1.33%, Infosys down by 0.92% and NTPC down by 0.78% were the top losers on the Sensex.
Meanwhile, the amount of loans to be restructured in 2012-13 is likely to go up to Rs 2 lakh crore, as per the rating agency CRISIL. What is more disturbing is the fact that unlike earlier when the restructured loans majorly represented small and medium enterprise (SME) accounts, this time around they consist of large corporate houses, and over two-thirds of the loans restructured till December 2011 had a ticket size of over Rs 1,000 crore.
Total restructured loans will account for 3.5% of the total advances as on March 2013 and the total amount of loans likely to be restructured over the two year period of 2011-12 and 2012-13 is estimated at nearly Rs 2 lakh crore.
The large quantum of restructuring reflects the prevailing stress on corporate India's credit quality because of lower profitability, weak demand and tight liquidity. The sectors with large debt are particularly vulnerable to restructuring, and nearly 30% of the restructuring is expected in the power sector. The other susceptible sectors include aviation, construction, engineering, steel, textiles and telecom infrastructure.
CRISIL expects the pressure on banks' asset quality to continue in 2012-13, as indicated by the increased loan restructuring and non-performing assets (NPAs) in the sector. The large quantum of restructuring will help restrict the increase in banks' reported NPAs.
Furthermore, banks' gross NPAs (non-performing assets) are set to increase to 3.2% by March 2013, from 2.9% as on December 2011. The increase in NPAs reflects the expectation of slippages in the agriculture and SME portfolios.
The S&P CNX Nifty is currently trading at 5,228.95, up by 6.30 points or 0.12%. The index has touched a high and low of 5,236.10 and 5,211.45 respectively. There were 31 stocks advancing against 18 declines while one stock remain unchanged on the index.
The top gainers of the Nifty were Hero MotoCorp up by 2.18%, Bharti Airtel up by 2.08%, Bajaj Auto up by 1.98%, Ambuja cements up by 1.96% and Sesa Goa was up by 1.81%.
On the flip side, Wipro was down by 7.33%, GAIL down by 3.23%, RPower down by 2.07%, TCS down by 1.21% and Infosys down by 1.06%, were the major losers on the index.
At this point of time most of the Asian equity indices were trading in the green; Shanghai Composite was up by 0.40%, Nikkei 225 surged by 0.96%, Straits Times was up by 0.06%, Seoul Composite gained 0.37% to 1,957.53 and Taiwan Weighted added 0.85%.
On the flip side, Hang Seng declined marginally by 0.03%, Jakarta Composite slipped by 0.14% and KLSE Composite was down by 0.05%
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