Markets prolong the somber run in afternoon session

Domestic equity indices have drifted lower in the Wednesday afternoon session, after trading above the neutral line for first half of the session. The indices are broadly showing a sideways kind of move since the start as investors seem reluctant to go for broad based buying and are indulging only in stock specific activities amid lack of positive triggers. Realty and Banking counters on the BSE took the maximum beating and have plunged 1.03% and 0.61% respectively, on the flipside, buying was largely witnessed in Consumer Durables and Auto stocks which rose by 0.85% and 0.45%. In line result announcement of Wipro was offset by and muted guidance by IT bellwether and the investors have punished the stock taking down by over two and half a percent. However, hefty buying in heavyweights like ONGC, Infosys, M&M and Maruti Suzuki has prevented the frontline indices from slipping deeper into the red. The benchmarks have lost around a quarter percent point in the session so far as they continue to test the crucial 5,850 and 19,500 support levels. On the global front, Asian indices after starting on an optimistic note, are currently exhibiting mixed trend while leads from the European counterparts too remained unsupportive for the local bourses.

Meanwhile, the broader markets have managed to keep their head above the water and outperform their larger peers by quite a margin. The midcap index added 0.16% while the smallcap index climbed 0.41%. The market breadth on the BSE was in favor of advances in the ratio of 1349:1254 while 144 scrips remained unchanged.

The BSE Sensex fell by 41.48 points or 0.21% at 19,503.87. The index touched a high and a low of 19,633.63 and 19,495.43 respectively.

On the BSE sectoral front, CD up 0.85%, Auto up 0.45%, PSU up 0.37%, FMCG up 0.21% and HC up 0.17% were the major gainers.

On the other hand, Realty down 1.03%, Bankex down 0.61%, CG down 0.50%, Metal down 0.47% and Power down 0.39% were the major laggards in the space.

The top gainers on the Sensex were M&M up 1.79%, Maruti Suzuki up 1.68%, ONGC up 1.65%, Bharti Airtel up 1.34% and Infosys up 0.54%.

On the flip side only Wipro down 2.75%, BHEL down 1.23%, DLF down 1.01%, HDFC Bank down 1% and JP Associates down 1% were the major losers on the index.

Meanwhile, the Doha round of World Tarde Organisation (WTO) continues to remain in a state of comma as the latest draft proposals circulated by the multilateral body fail to evoke any substantial change in key member's positions, particularly on the controversial sectoral talks for cutting down duties by emerging nations.

As a result, the disagreements between the US and large emerging nations including India, China and Brazil remain as wide as they ever were. India's commerce and industry minister Anand Sharma on Tuesday stated that while his ministry was examining the latest draft, there was no change on its position with regard to mandatory participation in sectoral negotiations to eliminate duties on select industrial goods as has been demanded by the US.

'We have made our position on sectorals clear. While we are not saying that sectorals are no-go areas, we want the freedom to decide where we want to participate and where we do not,' Sharma told media persons while talking about prospects of Doha deal's future. He added that India was committed to multilateral trading regime and will do everything needed to ensure a successful conclusion of the Doha round, but without jeopardizing the interests of its local businesses. 

There was a clause in Doha round negotiations that there would be separate negotiations between the US and emerging countries including India and China regarding cutting down the tariffs for import of manufactured products at sectoral levels. This however was supposed to be a voluntary negotiation between the two sides and was not to be made mandatory under the final lines of Doha deal.

However, close on heels of the global financial crisis of 2008, the US demanded that emerging nations must first give an assured commitment to participate in the sectoral negotiations before it would agree with the already negotiated farm and NAMA (non-agricultural market access) agreements. Emerging nations while have offered to participate in sectoral negotiations voluntarily, they continue to oppose any mandatory clause in this regard to be introduced into the Doha deal agreement.

The S&P CNX Nifty eased 16.20 points or 0.28% at 5,852.20. The index touched high and low of 5,892.35 and 5,845.70, respectively.

The top gainers on the Nifty were M&M up 1.78%, Maruti up 1.72%, ONGC up 1.65%, Bharti Airtel up 1.32% and Infosys up 0.46%.

On the other hand, Ambuja Cement down 2.85%, Wipro down 2.81%, BHEL down 1.55%, GAIL down 1.38% and Siemens down 1.33% were the major losers on the index.

On the Asian front, Shanghai Composite was down 0.90%, Hang Seng was down 0.57% and Straits Times was down 0.11%.On other hand, Jakarta Composite was up 0.56%, KLSE Composite was up 0.01%, Nikkei 225 was up 1.39%, Seoul Composite was up 0.02% and Taiwan Weighted was up 1.13%.

The European markets have opened a mixed note as the France's CAC 40 eased 0.11%, Germany's DAX added 0.14% and Britain's FTSE 100 slipped 0.35%.

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