Benchmark indices continue to trade lower

The Benchmark equity indices continue to trade lower after hitting fresh intraday low in late morning session due to mixed global cues and a spike in Brent crude futures to above $121 a barrel weighing on sentiment. Meanwhile, the other Asian markets are trading mixed after Japan's Tokyo Electric Power Co. began dumping radioactive water from its crippled nuclear plant while US index futures were also trading lower. Back home majority of the sector indices were trading negative , Bankex , Realty , Metal , IT  and Oil & Gas stocks witnessing selling pressure  while Consumer Durable (CD) and Healthcare (HC) companies showing some strength . However, the broader indices continued their winning streak for the third consecutive session; the BSE Mid cap and Small cap indices surged 0.09% and 0.63% respectively and the overall market breadth on BSE was in the favour of advances which outnumbered declines in the ratio of 1489:1050, while, 85 shares remained unchanged. The BSE Sensex shed 125.74 points or 0.64% at 19575.99. The index has touched a high of 19,770.21 and a low of 19,562.32 respectively.

The top losers on the BSE sectoral indices were, Bankex down by 079%, Realty down by 0.66%, Metal down by 0.65%, IT down by 0.62% and Oil & Gas down 0.60% while Consumer Durable (CD) up 1.75% and Healthcare (HC) up 0.12% were the only gainers in the BSE sectoral indices.

The top gainers on the Sensex were Cipla up by 1.17%, Reliance Communication up 0.96%, BHEL up 0.91%, Tata Motors up 0.45% and Hero Honda up 0.35%.

On the flip side, DLF down 1.93%, M&M down by 1.90% Tata Power down 1.61%, Jindal Steel down by 1.03% and HDFC down 1.02% were the top losers on the index.

Slight moderation has been observed in India's service economy when compared with the seven-month high seen in February amidst continued pressure on costs, particularly due to rising wages and also owing to high overall inflation, though the overall performance of the services sector remains strong.

The seasonally adjusted HSBC Markit Business Activity index, based on a survey of over 450 companies, which has come to be regarded as an excellent advance indicator of economic activity, showed slight moderation to 58.8 in March from 60.2 seen in February. However, in an absolute sense the overall level of index continues to indicate substantially rapid expansion in the services sector.

According to the Survey, Indian companies reported a marked rise in new business during March, with positive expansion sustaining continuously since May 2009. However, the latest expansion of new business slowed slightly from February's eight-month high, which brought down the overall index slightly. Employment in the services sector also rose at the fastest rate since June 2010, indicating increasing demand side of the businesses.

At the same time, inflationary pressures continued to increase in March, as both input and output prices rose at stronger rates than in the previous survey period. The increase in input prices was only marginally weaker than January's series record high, while the latest rise in charges was the fastest since July 2008.

Overall, the Indian service providers remained optimistic regarding future business prospects in March. Over half of the companies surveyed expect activity to increase over the next twelve months, boosted by growth of new work intakes. Ongoing improvements in general economic conditions and increased marketing activity are projected to support the rise in new business.

Commenting on the India Services PMI survey, Leif Eskesen, Chief Economist for India and ASEAN at HSBC said, 'The growth momentum in the services sector remains strong, although it eased a bit in March. However, input costs and prices charged are still trending up and at a faster pace. This highlights that inflation remains the dominant concern, not growth, calling for RBI to continue the tightening cycle.'

The S&P CNX Nifty declined 40.55 points or 0.69% at 5,867.90.The index has touched a high of 5,928.65 and a low of 5,863.20 respectively.

The top gainers of the Nifty were Ranbaxy up by 1.87%, Ambuja Cement up by 1.52%, Cipla up by 1.27%, Sesa Goa up by 1.26% and GAIL up by 0.66%.

M&M  down by 2.16%,DLF down by 2.13%, Tata power down 1.84%, Kotak Bank down by 1.58% and Axis Bank was down by 1.48%, were the major losers on the index.

The other Asian markets were trading mostly in the negative terrain; Jakarta Composite shed 0.51%, KLSE Composite declined 0.14% and Nikkei 225 trimmed 1.01% while Straits Times advanced0.72% and Seoul Composite surged 0.60%

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