The Indian equity markets have made a negative start tracking weak cues from global indices. The US markets closed lower on Friday while, most of the Asian counterparts were trading in the negative terrain at this point of time, indicating somber investors' sentiments. Back home, sustained selling witnessed in key heavyweights dragged markets into the negative terrain. The BSE's Sensex was trading way below its crucial 18,500 level. On the sectoral front healthcare witnessed the maximum gain in trade followed by fast moving consumer goods and power while, auto, banking and realty remained the top losers on the BSE sectoral space. Meanwhile, PSU oil marketing companies viz., BPCL, HPCL and IOC all were trading with a gain of more than half a percent after a Union Cabinet hiked price of petrol by a whopping Rs 5. However, auto shares declined on fears rising fuel prices and interest rates may dampen demand. The broader indices were trading on a flat note. The market breadth has made a negative start; there were 680 shares on the gaining side against 814 shares on the losing side while 75 shares remained unchanged.
The BSE Sensex opened at 18,492.68; about 39 points lower compared to its previous closing of 18,531.28, and has touched a high and a low of 18,492.68 and 18,392.07 respectively.
The index is currently trading at 18,453.31, down by 77.97 points or 0.42%. There were just 4 stocks advancing against 26 declines on the index.
The overall market breadth has made a negative start with 43.34% stocks advancing against 51.88% declines. The broader indices were trading on a mixed note; the BSE Mid cap index was down by 0.06% and Small cap indices index was up by 0.04%.
The top gaining sectoral indices on the BSE were, HC up by 1.30%, CG up by 0.14%, Power up by 0.09% and Oil and Gas was up by 0.05%. While Auto down by 1.14%, Bankex down by 0.66%, Realty down by 0.66%, IT down by 0.42% and TECk down by 0.25% were the top losers on the index.
The top gainers on the Sensex were BHEL up by 0.73%, TCS up by 0.67%, RCom up by 0.39% and Bharti Airtel was up by 0.03%.
On the flip side, M&M down by 2.00%, ICICI Bank down by 1.48%, Tata Motors down by 1.48%, Jaiprakash Associates down by 1.37% and Maruti Suzuki down by 1.33% were the top losers on the index.
Meanwhile, the households and industries are unlikely to get any respite from power shortages in near future, with the country's power capacity addition targets clearly fizzling out. The coal supply shortage has forced the government to plan a capacity addition of only 7,675 MW for this year which is the last year of 11th Five-Year Plan. The capacity for 11th Five Year plan is just above 40,000 MW as against a revised target of 62,374 MW.
The power ministry has hooked capacity addition of a mere 7,675 MW in 2011-12, the lowest for any year of the current five year plan. The government initially targeted over 20,000 MW in 2011-12 to reach the revised target of current plan. This would mean that the five year plan period will end a degeneration capacity addition of above 44,000-45,000 MW for below the revised target of 62,000 MW and substantially lower than the original target of 78,700 MW. In 2010-11, the government has been able to achieve 12,160.50 MW, which is the highest capacity addition in a single year. The year 2009-10 too was a record year with the country adding highest ever capacity of 9,585 MW. For the total 11th Plan, a capacity of 34,462 MW had been achieved till March this year.
The surprising disclosure of reduced target came at a meeting convened by the Planning Commission to finalize target for annual plan 2011-12 last month. Power Ministry secretary Uma Shankar stated that, the capacity addition will fall further in the current year mainly because of shortage of coal. The main cause for slippages in the capacity addition programme has been unpredictable supply from Coal India (CIL). In 2010-11, CIL had committed to supply 335 million tons of coal, though the actual supply has been only 302 million tonnes.
The slippages in 11th Plan is also expected to over shadow the plan to add over 100,000 mw of new capacity in 12th Plan period (2012-17). The slippages on capacity addition are not new for the country's power sector. The targets have been missed by wide margins in previous several five year plans. Even after the slippage in 11th Plan, it will be best plan in terms of new capacity added.
The Planning Commission had also set up a working group on power to analysis the capacity addition for the 11th Plan as well as formulates strategy for the upcoming 12th Plan. It had been proposed that nine sub-groups should be set up under the working group, which would submit its report by September 30. It would also recommend optimal mix of additional generating capacity during 12th Plan period on the basis of different fuels at different locations, besides exploring avenues for purchase of power from neighboring countries through joint venture schemes.
The S&P CNX Nifty opened at 5,541.70; about 3 points lower compared to its previous closing of 5,544.75, and has touched a high and a low of 5,541.80 and 5,509.60 respectively.
The index is currently trading at 5,536.05, down by 17.05 points or 0.31%. There were 15 stocks advancing against 35 declines on the index.
The top gainers of the Nifty were Ranbaxy up by 2.49%, Sun Pharma up by 2.15%, Sesa Goa up by 2.05%, BPCL up by 1.76% and Ambuja Cement up by 1.21%.
M&M down by 1.63%, Tata Motors down by 1.32%, Wipro down by 1.11%, ICICI Bank down by 1.09% and Kotak Bank was down by 1.08%, were the major losers on the index.
Asian markets were trading mostly in the red; Shanghai Composite was down 8.02 points or 0.28% to 2,863.02, Hang Seng was down 275.83 points or 1.19% to 23,000.44, Jakarta Composite was down 36.90 points or 0.96% to 3,795.12, Nikkei 225 was down 75.92 points or 0.79% to 9,572.85, Straits Times was down 27.99 points or 0.88% to 3,135.69, Seoul Composite was down 16.69 points or 0.79% to 2,103.39 and Taiwan Weighted was down 67.93 points or 0.75% to 8,938.68.
On the flip side, KLSE Composite was up 0.19 points or 0.01% to 1,540.93.
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