MARKET SLIPS IN RED

Relentless selling pressure has took some more steam out of benchmark equity indices, which paring substantial early gains, are  just about managing to hold on in green with slender gains. Mixed regional counterparts, are also rendering no support to Indian equity markets which witnessing sustained selling pressure from Metal, Oil & Gas and Health Care counter, now appear to be on the way of registering seventh successive session of losses.

Trading near intra-day's low, benchmark 30 share index, Sensex, is trading near its 19600 level, likewise, 50 share index, Nifty, too oscillating a little above neutral line, is  trading sub 5950 bastion. However, broader indices, witnessing additional selling pressure, have slipped deeper in red, with loss of over 2/10 of a percent.

On the global front, Asian shares too giving part some of their early gains are now trading on mixed note as investor's opted to book profits before next week's Chinese new year holidays. However, China's strong export data provided support. China said its exports grew 25.0 percent in January from a year ago, the strongest showing since April 2011 and well ahead of market expectations for a 17 percent rise, while imports also beat forecasts, surging 28.8 percent on the year.

Closer home, Information Technology (IT), TECk and Capital Goods counters, were amongst the star performers of the trade. Further, Auto stocks are ruling firm since early deals. However, markets could soon slip in red terrain given the disappointment with Canara Bank's Q3 number. Public sector lender Canara Bank's third quarter net profit dropped 19 percent year-on-year to Rs 710.5 crore, dented by higher provisions. The overall market breadth on BSE is in the favour of declines which thumped advances in the ratio of 1421:996, while 131 shares remained unchanged.

 The BSE Sensex is currently trading at 19617.47, up by 37.15 points or 0.19% after trading in a range of 19648.07 and 19568.57. There were 14 stocks advancing against 16 declines on the index.

The broader indices witnessed some additional selling pressure; the BSE Mid cap and Small cap index was down by 0.22% and 0.32% respectively.

The top gaining sectoral indices on the BSE were Information Technology up by 1.42%, TECk up by 1.01%, Capital Goods up by 0.82%, Consumer Durables up by 0.57% and Power up by 0.22%. While, Metal down by 0.97%, Oil & Gas down by 0.44%, Health Care down by 0.56%, PSU down by 0.53%, Oil & Gas down by 0.47% and FMCG down by 0.27% were the top losers on the index.

The top gainers on the Sensex were TCS up by 3.06%, Wipro up by 1.95%, NTPC up by 1.48%, BHEL up by 1.46% and L&T up by 1.36%.

On the flip side, Cipla down by 3.63%, Coal India down by 2.47%, Sterlite Industries down by 2.39%, Hindalco Industries down by 2.16% and Maruti Suzuki down by 1.34% were the top losers on the Sensex.

Meanwhile, the new National Steel Policy draft has proposed the allocation of captive iron ore mines to producers through open bidding and putting some mines in a general category for all bidders. The draft has projected India's iron ore requirement to increase to 392 MT by 2025-26, from around 200 MT at present.

The new policy draft seeks to replace the existing one that was formulated in 2005 and suggest ways to create an environment conducive for the growth of the industry that is weighed down by the issues like land acquisition and raw material scarcity.

Recognizing lack of raw material security, as a major constraint in increasing steel capacity, the draft said 'lack of raw material security has been one of the major causes for tardy progress of steel capacity expansion. The government will consider to further strengthen the provisions of allocation of captive iron mines to steel producers in a transparent manner through a process of open bidding for all the well prospected mines'.

Further, to ensure the raw material security, it has recommended restricting the exports and has also warned that the country may have to import iron ore in large quantities in the future at the forecast rate of growth of the steel industry. Given the possibility of early exhaustion of iron ore, the government will constitute an inter-ministerial committee to draw a road map or phased reduction of iron ore exports to a moderate level, the draft said. 

The draft also added that while holding a general policy to discourage iron ore exports, the government will actively engage itself in granting iron ore mining concessions in an absolutely transparent manner to draw adequate investment into the area and to ensure that there is sufficient mining capacity to feed the growing demand for iron ore within the country

The S&P CNX Nifty is currently trading at 5,945.40, up by 6.60 points or 0.11% after trading in a range of 5,953.70 and 5,929.05. There were 20 stocks advancing against 29 declines on the index, while 1 share remained unchanged.

The top gainers of the Nifty were TCS up by 3.09%, Wipro up by 1.80%, NTPC up by 1.59%, BHEL up by 1.50% and L&T up by 1.44%.

On the flip side, Ambuja Cements down by 4.90%, Cipla down by 3.35%, Coal India down by 2.56%, Hindalco Industries down by 2.99% and ACC down by 1.88% were the major losers on the index.

Most of the Asian equity indices were trading in the green; Shanghai Composite rose 0.53%, Hang Seng increased 0.13%, KLSE Composite added 0.28%, Straits Times jumped advanced 0.31% and KOSPI Composite jumped by 0.99%.

On the flip side, Jakarta Composite slipped 0.11% and Nikkei 225 descended by 1.80%.

Taiwan Weighted remained shut for the trade today.