The Indian equity markets have witnessed massacre in the early trade on the back of domestic political worries and a rally in crude oil prices. Asian markets too were not able to aid sentiments as most of the indices trading in the negative terrain at this point of time. The US markets closed lower on Friday due to the rise in crude once again otherwise the employment data rate fell to its lowest level in nearly two years also weighed sentiments. Back home, sustained selling in all the heavyweights and broader indices were keeping the momentum on a negative side. NSE's -- Nifty -- was hovering near its crucial 5,450 level as investors remained cautious after the DMK on Saturday pulled out of the United Progressive Alliance (UPA) after seat-sharing talks for the Tamil Nadu elections broke down and the DMK will be withdrawing its ministers from the Union cabinet today. On the sectoral front, auto, realty and banking were the major losers, while there were no gainers in the trade. The broader indices too have witnessed lackluster trade in the early morning session. The market breadth on the BSE was negative; there were 1,073 shares on the losing side against 396 shares on the gaining side while 45 shares remained unchanged.
The BSE Sensex opened at 18,361.65; about 125 points lower compared to its previous closing of 18,486.45, and has touched a low of 18,193.16, while high remain its opening.
The index is currently trading at 18,217.76, down by 268.69 points or 1.45%. All the stocks were trading in the negative terrain on the index.
The overall market breadth has made a negative start with 26.16% stocks advancing against 70.87% declines. The broader indices too were bleeding; the BSE Mid cap and Small cap indices lost 1.53% and 1.22% respectively.
All sectoral indices on the BSE were trading down; Auto down by 2.28%, Realty down by 2.14%, Bankex down by 1.74%, CG down by 1.61% and CD down by 1.42%, were the major losers on the index.
M&M down by 2.99%, Tata Motors down by 2.87%, Maruti Suzuki down by 2.71%, RCom down by 2.68% and Jaiprakash Associates down by 2.50% were the top losers on the index, while there were no gainers in the trade.
Meanwhile, the government on March 4, 2011 sought Parliament's nod for the sanction of an additional Rs 79,590 crore to meet extra expenses related to fuel and fertilizer subsidies in the current fiscal. Out of the total demand of Rs 79,590 crore, the net cash outgo on meeting the extra expenses in the current fiscal would be Rs 68,918 crore. The remaining amount would be met through savings in other heads of expenses and enhanced recoveries.
Besides fertilizer subsidy of Rs 8,000 crore, the main heads for which there will be net cash outgo are petroleum subsidy of Rs 21,000 crore, food subsidy of Rs 3,972.46 crore, Defense pension of Rs 9,000 crore, short-term loan of Rs 5,000 crore to Food Corporation of India, recapitalization of public sector banks involving an amount of Rs 3,187 crore and central sales tax (CST)/VAT revenue loss compensation to States of Rs 3,354.13 crore.
Earlier, the Union Budget for 2010-11 had originally allocated Rs 49,980.73 crore towards fertilizer subsidy, which was later raised to Rs 54,976.68 crore according to the revised estimates presented by the Finance Minister, Pranab Mukherjee, in his latest Budget. However, in the third batch of supplementary demand for grants tabled by S.S.Palanimanickam, Minister of State for Finance, in the Lok Sabha on Friday, the industry has been provided another Rs 8,000 crore - that would take the total fertilizer subsidy bill for this fiscal to almost Rs 63,000 crore. The entire amount of Rs 8000 crore would go to phosphatic, potassic and complex fertilizer firms. Out of which, Rs 4,350 crore is proposed to go towards reimbursing the importers of decontrolled fertilizers, the remaining Rs 3,650 crore would be provided to the indigenous producers. The latest allocation for fertilizer subsidy will ensure that there are no pending dues to be rolled over to the next fiscal.
The S&P CNX Nifty opened at 5,490.05; about 48 points lower compared to its previous closing of 5,538.75, and has touched a high and a low of 5,491.25 and 5,448.70 respectively.
The index is currently trading at 5,454.15, down by 84.60 points or 1.53%. There were just 2 stocks advancing against 48 declines on the index.
The top gainers of the Nifty were Cairn up by 0.95% and Hindalco up by 0.12%.
The top losers of the index were Tata Motors down by 3.10%, M&M down by 3.08%, Axis Bank down by 2.92%, Sun Pharma down by 2.74% and BPCL was down by 2.67%.
Asian markets were trading mostly in the red; Shanghai Composite was up 42.23 points or 1.44% to 2,984.53, Jakarta Composite was up 5.99 points or 0.17% to 3,548.90 and Straits Times was up by 4.43 points or 0.14% to 3,065.74.
On the flip side, Hang Seng was down 34.66 points or 0.15% to 23,374.20, KLSE Composite was down 8.61 points or 0.57% to 1,514.00, Nikkei 225 was down 181.67 points or 1.70% to 10,511.99, Seoul Composite was down 18.33 points or 0.91% to 1,986.35 and Taiwan Weighted was down by 52.48 points or 0.60% to 8,731.92.
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