Key benchmark indices are treading in rough waters due to selling pressure ahead of derivatives expiry. Also, inflation concerns are weighing on the investor's sentiments as weekly food and fuel inflation data is due later in the day which could set the tone for the central bank's rate hike decision. On the global front, while most of the Asian markets are trading in the green; US index futures are showing an up-tick in screen trade at this point of time. Back home, on the sectoral front, realty counter was leading the losses followed by power, capital goods, information technology and metal segments; while consumer durables, auto, healthcare and public sector undertakings were helping the markets from further slide. Broader markets are trading mixed; the BSE Mid cap index has lost 0.12%; while BSE Small cap index gained 0.06%. The market breadth on the BSE was negative; the losers thrashed the gainers in a ratio 1352:1096 and 124 shares were unchanged. Meanwhile, stocks of fertilizer companies went up on the report that Indian government is likely to hike the subsidy it gives in phosphatic and potassic (P&K) fertilizers. The Cabinet Committee on Economic Affairs (CCEA) will be raising the import parity prices of di-ammonium phosphate (DAP) and muriate of potash (MOP), based on which the quantum of subsidy for P&K fertilisers is determined. National Fertilizers was up by 4.61%, Nagarjuna Fertilizers & Chemicals was up by 2.23%, Chambal Fertilisers & Chemicals was up by 1.45% and Rashtriya Chemicals & Fertilizers was up by 2.56% etc.
The BSE Sensex shed 47.72 points or 0.25% at 19,400.97. The index has touched a high of 19,542.05 and a low of 19,360.61 respectively.
The BSE Mid cap index lost 0.12%; while BSE Small cap index gained 0.06%.
The top losers on the BSE sectoral space were Realty down 2.10%, Power down 0.45%, Capital Goods (CG) down 0.39%, Information Technology (IT) down 0.36% and Metal down 0.28%.
On the flip side, Consumer Durables (CD) up 0.26%, Auto up 0.23%, Healthcare (HC) up 0.13% and Public Sector Undertakings (PSU) up 0.09% were the only gainers on the BSE sectoral space.
The top gainers of the Sensex were Bajaj Auto up 1.21%, ONGC up 1.20%, Bharti Airtel up 0.83%, Sterlite Inds up 0.52% and Hindalco Inds up 0.45%.
On the flip side, BHEL down 2.04%, RCom down 1.81%, DLF down 1.58%, Jindal Steel down 1.47% and Rel Infra down 1.32% were the major losers on the index.
A Committee of Secretaries (CoS) set up by the government of India which is looking into the issue of how to price natural resources including spectrum, has said in a draft report that telecom spectrum was a scarce natural resource and it must be auctioned in order to discover its true market price.
The mandate of the committee was to develop a framework for transparent and just pricing of natural resources. It has already prepared a draft report and a final report is likely to be submitted to the Cabinet soon. The committee was set up following the controversy of government allocating the 2G spectrum in 2008 at throwaway prices. It will however look at broader contour of all the natural resources including oil and gas and other minerals.
In its recommendations regarding the telecom spectrum, the committee has also agreed with the view of ministry of communications regarding delinking spectrum from license. The committee feels that while the license was a contract allowing a particular entity to conduct a particular business, spectrum was a natural resource and must be provided separately against a market based price. By providing spectrum with license, the government might be under-pricing the spectrum.
Finally, the committee is also in favour of allowing spectrum trading by telecom operators as has been argued by the telecom regulatory authority of India (TRAI). The department of telecommunications (DoT) is in the process of finalizing regulations for spectrum trading. The committee feels that by allowing trading, most efficient use of the resources can be achieved while at the same time ensuring that government gets a reasonable price in auction of spectrum.
The 2G license controversy has forced the government to bring a streamline policy for allocating natural resources. In fact many political analysts feel that not just telecom spectrum but allocation of all other natural resources has been rather opaque in India for long and it was time for some rule based play to be implemented. This is the reason that the CoS has been given a wider mandate to recommend efficient and transparent ways for allocating all natural resources and not just the spectrum.
The S&P CNX Nifty slipped 10.80 points or 0.19% at 5823.10. The index has touched a high and a low of 5856.40 and 5805.85, respectively.
The top gainers of the Nifty were Ambuja Cement up 2.05%, Bajaj Auto up 1.29%, ONGC up 1.22%, Sesa Goa up 0.83% and Sun Pharma up 0.82%
On the flip side, SAIL down 2.45%, BHEL down 1.81%, RCom down 1.81%, Cairn India down 1.77% and Jindal Steel down 1.71% were the major losers on the index.
Rest of the Asian markets were trading mostly in the green. Hang Seng advanced 0.42%, Jakarta Composite gained 0.05%, KLSE Composite rose 0.23%, Nikkei 225 surged 1.44%, Straits Times soared 0.50% and Seoul Composite rose 0.11%; while Shanghai Composite dropped 0.66% and Taiwan Weighted shed 0.09%.
Unit-8, 3rd Floor, First Mall, The Mall, Ludhiana-141001, Punjab (INDIA).
| To unsubscribe or change subscriber options visit: http://www.aweber.com/z/r/?TJzsLEwstCyc7OysHMyctEa0nOxMzOwsHA==  |
Posts
0 comments:
Post a Comment
Note: only a member of this blog may post a comment.