Markets make a soft start tracking weak Asian counterparts

The domestic equity markets have made a soft start tracking their regional peer. All the Asian equity indices barring Straits Times were trading in the negative terrain at this point of time, though the US markets closed on a mixed note overnight. Back Home, the NSE's -- Nifty -- and BSE's -- Sensex -- were trading below their crucial levels of 6,000 and 19,050, respectively. On the sectoral front, Realty, Healthcare and Fast Moving Consumer Goods stocks were witnessing maximum gains in trade, while Auto, Public Sector Undertakings and Oil and Gas counters were the major losers on the BSE sectoral space. The broader indices too were trading in the red. The PSU oil marketing companies (OMCs) Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation (HPCL), all were trading with a cut of more than two percent on report that the government may have to defer the diesel price rise by a few weeks. The market breadth on the BSE was negative; there were 856 shares on the losing side against 753 shares on the gaining side while 54 shares remained unchanged. 

The BSE Sensex opened at 19,911.46; about 70 points lower compared to its previous closing of 19,982.88, and touched a high and a low of 19,960.91 and 19,880.36 respectively.The index is currently trading at 19,938.75, down by 44.13 points or 0.22%. There were just 12 advances against 17 declines while one stock remained unchanged on the index.

The overall market breadth has made a negative start with 45.28% stocks advancing against 51.47% declines. The broader indices too were trading in the red; the BSE Mid cap and Small cap index were down by 0.08% and 0.15%, respectively. 

The top gaining sectoral indices on the BSE were Realty up by 0.29%, HC up by 0.24% and FMCG up by 0.12%.

On the other hand top losing indices were Auto down by 0.67%, PSU down by 0.41%, Oil and Gas down by 0.38%, Bankex down by 0.33% and IT was down by 0.29%.

Hindalco up 1.26%, Wipro up 0.77%, Relaince Infra up 0.44%, SBI up 0.36% and DLF up 0.32% were the major gainers on the Sensex.

On the other hand, Tata Motors down 1.17%, ICICI Bank down 1.01%, M&M down 0.87%, Maruti Suzuki down 0.80% and ONGC down 0.60% were the major laggards on the index.

Meanwhile, India's Planning Commission, the top economic strategy making body of the country, said on Wednesday that the environment ministry should show some flexibility in terms of demarking the go and no-go areas so that while the environmental concerns are addressed, industrial growth and overall development in the country is not effected either.

"If we get a sensible definition of what is no-go... something that is called no-go for now does not have to be no-go for ever. But the main point is that they should be flexible," said the deputy chairman of the Commission M S Ahluwalia while talking to reporters on the sidelines of the Public-Private Partnership (PPP) Conclave in New Delhi on Wednesday.

"The criteria that we use to establish what is no-go should be very carefully defined and based on some scientific considerations," Ahluwalia said. He added that the Planning Commission has taken up the issue with environment ministry and the latter was willing to mend some rules. "He (Environment Minister Jairam Ramesh) is quite willing to be flexible on what the criteria should be", Ahluwalia said.

The stand taken by the Planning Commission will support the demand of coal ministry which had recently sought Cabinet approval for its proposal for allowing mining in 90% of coal blocks categorised as ' no- mining' areas currently by the environment ministry. No-go areas comprise of a total of 206 coal blocks spread across 4,039 sq km in nine coalfields, with a production potential of 660 million tonne, according to the coal ministry.

The ministry of environment and forests wants greater regulations in mining in light of large-scale illegal mining across India, which causes environmental hazards. The coal as well as mines ministries however want regulations to be practical and flexible so that more coal and other minerals can be mined to meet the requirements of economic development. For instance, a number of power projects in India get delayed simply because it is difficult to get environment clearance for coal linkages.

The S&P CNX Nifty opened at 5,940.25; about 40 points lower compared to its previous closing of 5980.00, and has touched a high and low of 5,971.25 and 5,940.25 respectively. The index is currently trading at 5,963.85, down by 16.15 points or 0.27%. There were 20 advances against 28 declines while two stocks remained unchanged on the index.

The top gainers of the Nifty were Sun Pharma up by 1.46%, Hindalco up by 1.18%, Cairn up by 1.05%, Wipro up by 0.83% and Relaince Capital was up by 0.76%.

The top losers of the index were BPCL down by 2.19%, SAIL down by 1.64%, Tata Motors down by 1.60%, HCL Tech down by 1.25% and ICICI Bank was down by 0.99%.

All the Asian equity indices barring Straits Times were trading in the red; Shanghai Composite was down 12.76 points or 0.45% to 2,842.46, Hang Seng was down 48.76 points or 0.21% to 22,854.21, KLSE Composite was down 2.18 points or 0.14% to 1,512.30, Nikkei 225 was down 65.90 points or 0.64% to 10,280.58, Seoul Composite was down 5.79 points or 0.28% to 2,031.74 and Taiwan Weighted was down by 20.46 points or 0.23% to 8,878.41.

On the flip side, Straits Times was up by 6.35 points or 0.20% to 3,144.13. 

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