Markets trade near their days low

The domestic equity markets have declined further and are currently trading near the lowest point of the day.Though rate sensitive's' have extended their fall after declining in last three trades but today the biggest drag is coming from the capital goods, consumer durables and healthcare while none of the sector is able to pose any resistance . Some buying in heavy weights like Bharti Airtel, Sterlite, Infosys proved too minimal to soothe the markets. The broader indices are continuing their southward journey while the benchmarks have broken their support levels of 5850 (Nifty) and 19500 (Sensex). The global cue too remain unsupportive with majority of the Asian indices trading in red while flat trading at the US markets with negative bias. The market breadth on the BSE continues to be sluggishly in the favour of declines which have thrashed advances in the ratio of 1839:835, while, 83 shares remained unchanged.

The BSE Sensex is currently trading at 19,407.40, down by 284.41 points or 1.44%. There were 5 stocks advancing against 25 declines on the index.

The broader indices, both Small cap and Midcap were down by 1.19% and 1.46% respectively.

The major losers in the BSE sectoral space were, Capital Goods down by 2.91%, Consumer Durables down by 2.13%,HealthCare down 1.55%, Power down 1.52% and Bankex down 1.44%.while, there was no sectors that was trading in green on the index.

Meanwhile,India's Prime Minister, Dr Manmohan Singh, said on Saturday that the country was expected to grow at 9-10% from the next fiscal onwards, adding that the higher growth will help create more and better physical infrastructure and invest more money in social sector schemes like the national rural employment guarantee act (NREGA).

"We expect that from next year onwards, we will be able to grow at a rate between 9 and 10 per cent. This growth is vital to fund our ambitious social development programmes and create employment opportunities for our young population," the Prime Minister said after inaugurating the ninth Pravasi Bharatiya Diwas.

Singh said that Indian economy has proved much more resilient to the global crisis and recovered faster than most of the world. Further, the growth was already moving towards the high growth trajectory seen in 3-4 years preceding the crisis even as many countries are expanding at significantly below the trend growth rate. "In the last two quarters, our growth of Indian economy has been 8.9% and we expect that for the entire year it will be around 8.5%," Dr Singh said, adding that faster growth has allowed the government more space for social sector schemes.

The PM added that to improve the conditions for migrants overseas, the government has signed social security agreements with 12 countries and also finalized Labor Mobility Partnership with other two counties. He said that the OCI and PIO card scheme would be relooked at to further ease travel to India.  The possibility is that the two will be merged to help ease a trip back to the homeland for global Indians. 

The top gainers on the Sensex were Infosys up by 0.82%, Bharti Airtel up by 0.71 %, Reliance Infra up by 0.53%, Sterlite Industries up by 0.40% and SBI up by 0.40%.

On the other hand , HDFC Bank down by 4.39%, HDFC down by 4.22%,L&T down 3.77%, Hero Honda down by 3.02% and BHEL down by 2.95% were the top losers on the index.

SARIAH 50 is currently trading low by 15.43 points or 1.28% at 1,192.48.It has touched a high of 1,209.70 and a low of 1,192.06.

The much awaited indirect tax reform, that is the launch of goods and services tax (GST) is all set to be delayed further with government and opposition showing no signs of an early consensus on the matter. With the ongoing debate on 2G scam between the two sides, finance ministry expects little cooperation from the opposition ruled states on the matter.

The finance ministry was hopeful that if a consensus can be reached with all the states, a bill on the constitutional amendments that are needed to be passed before implementation of the much awaited tax can be introduced in the Parliament in the budget session. However, with no hope for a consensus, the matter seems to have been delayed much further.  

So far the empowered committee of state finance ministers seems to be divided evenly on the matter. While the congress ruled states are willing to accept the latest proposal by the finance ministry, the opposition ruled states are arguing that GST in current form will erode the fiscal autonomy of state governments. In his Budget speech in February last year, union finance minister Pranab Mukherjee had stated his intention to implement the GST by 1 April 2011. But the impasse over constitutional amendment required before the new indirect tax regime can be applicable has already ruled out that deadline.

The S&P CNX Nifty is currently trading at 5,824.10, down by 80.50 points or 1.36%. There were 8 stocks advancing against 41 declines.

The top gainers of the Nifty were Bharti Airtel up 1.29%, Sterlite Industries up by 1.70%, Axis bank up 0.72 %, Infosys up by 0.71% and Reliance Infra up by 0.42%.

The top losers of the index were HDFC Bank down by 4.58%,HDFC down by 3.97%, L&T down 3.63%, Sun pharma down by 3.31% and Hero Honda was down by 3.22%.

Asian markets were mostly trading in the red; Hang Seng was down by 0.13%, Jakarta Composite was trimmed 4.02 %, KLSE Composite slid 0.33%, Straits Times lost 0.32%, Seoul Composite declined 0.26 %

On the other hand Taiwan Weighted up by 0.40 % was the lone gainer in the Asian pack. Stock markets in Japan remained closed today on account of a national holiday.

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