LOSSES INTENSIFY

Losses at Dalal Street have intensified as traders continue to book profits in the back drop of sluggish global set up. Mood from the early deals was spooked on worries of a lower-than-expected showing by the Congress party in the Uttar Pradesh elections, which could make it difficult for the government to revive stalled reforms. Meanwhile, after sluggish close of US and European markets on Friday, Asian markets too were depicting subdued trend on Monday. Asian stocks fell the most in two weeks after China announced its lowest economic growth target since 2004. According to a transcript of Premier Wen Jiabao's address to the National People's Congress, China's government will aim for economic growth of 7.5 percent this year.

Back home, although shorts were created across the board, however, stocks from ADAG pack, barring the trend, were showcasing immense resilience. Meanwhile, stocks from Metal, Bankex and Capital Goods counters were the ones that were showcasing underlying weakness of the bourses. Thus, the barometer 30 share index -Sensex- after tanking over 100 of points was trading sub 17500 mark. Similarly, 50 share index- Nifty-dipping over 50 points was gyrating near its 5300 psychological mark. The broader indices too succumbed to selling pressure. The overall market breadth on BSE was in the favour of declines which thrashed advances in the ratio of 1197:963, while 100  shares remained unchanged.

The BSE Sensex is currently trading at 17,443.64, down by 193.35 points or 1.10%. The index has touched a high and a low of 17,598.42 and 17,408.39 respectively.   There were 4 stocks advancing against 26 declining one's on the index.

The broader indices too continued to meander into negative territory; the BSE Mid cap and small cap indices declined by 0.51% and 0.14% respectively.

Selling was witnessed across the board, however, Metal down by 1.99%, Bankex down by 1.92%, CG down by 1.63%, Realty down by 1.24% and PSU down by 1.10% were the top losers on the index.

The top gainers on the Sensex were Tata Motors up by 1.23%, Bharti Airtel up by 0.87%, Cipla up by 0.61% and Maruti Suzuki up by 0.50%.

On the flip side, Hindalco Industries down by 3.45%, Jindal Steel down by 2.94%, DLF down by 2.36%,  Sterlite Industries down by 2.27% and BHEL down by 2.23% were the top losers on the Sensex.

Meanwhile, All but 35 services are likely to be taxed in the upcoming budget. A consensus to this effect emerged in a meeting between the Finance Minister, Pranab Mukherjee and the Finance Ministers of States. All the state governments have agreed unanimously to the Center's proposal to tax all services except 35 services which fall under the negative list.

The states are of the opinion that the Centre should not impose service tax on the items falling in Schedule VII's List II of the Constitution, on which state impose taxes. These include services like ambulance, beauty parlours, marriage halls, interest on bank deposits, leasing of vehicles and machines, etc.

At present 119 services are taxed in the country with 22 services being kept in the negative list. The collection from service tax amounted to over Rs 70,000 crore during 2010-11. Services account for 63% of India's Gross Domestic Product and each year a number of services are being added.

Keeping this in view the Centre is keen that the base of the tax be expanded. With the unanimous view coming to this effect an announcement can be expected from the Finance Minister in the upcoming budget on March 16. For the current fiscal, the Centre hopes to mop up Rs 82,000 crore from this levy.

The S&P CNX Nifty is currently trading at 5,303.30, lower by 56.10 points or 1.05%. The index has touched a high and a low of 5,344.50 and 5,290.60 respectively.  There were 9 stocks advancing against 41 declines on the index.

The top gainers of the Nifty were Reliance Infra up by 7.50%, Reliance Power up by 4.81%, Reliance Communication up by 2.68%, IDFC up by 2.15% and Tata Motors up by 1.29%.

On the flip side, Jaiprakash Associates down by 4.84%, Hindalco down by 3.38%, Jindal Steel down by 3.08%, BHEL down by 2.33% and Hero MotoCorp down by 2.32%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite declined by 0.05%, Hang Seng plunged by 1.30%, Jakarta Composite  slid 0.42%, Nikkei 225 surrendered 0.90%, Straits Times was down by 0.17%, Seoul Composite shrank 0.97% and Taiwan Weighted plummeted 1.15%.

On the flip side, KLSE Composite up by 0.44% was the lone gainer amongst the Asian pack.