Benchmarks trade lower after a positive start

The Indian equity markets have witnessed a sharp fall in the early trade after a positive start as sustained selling by foreign funds over the past few days weighed on the sentiment. The US markets managed to close with some gains in the last session of the previous week while, most of the Asian counterparts were trading in the negative terrain at this point of time. Back home, selling witnessed in most of the key heavyweights dragged the NSE's Nifty below their crucial 5,350 mark. Moreover, GTL and GTL Infra smashed badly by over 55% and 40% respectively in the early trade too weighed on the sentiments. On the sectoral front, consumer durable and public sector undertaking remained the only gainers on the BSE sectoral space while, technology, software and auto remained the top losers. Meanwhile, the PSU oil marketing companies viz., BPCL, HPCL and IOC all were edged higher in the trade on the back of consistent decline in the international crude prices. While, sugar stocks like, Balrampur Chini, Bajaj Hindustan and Shree Renuka Sugar trading with a cut in a range of 2-4 percent as government stated that it will not allow more sugar exports till Diwali as the demand for the sweetener shoots up during the festive season. The broader indices too were bleeding badly in the trade. The market breadth has made a negative start; there were 928 shares on the losing side against 622 shares on the gaining side while 70 shares remained unchanged.

The BSE Sensex opened at 17,925.17; about 55 points higher compared to its previous closing of 17,870.53, and has touched a low of 17,774.09 while high remain its opening.

The index is currently trading at 17,775.06, down by 95.47 points or 0.53%. There were 6 stocks advancing against 24 declines on the index.

The overall market breadth has made a negative start with 38.40 % stocks advancing against 57.38% declines. The broader indices too were bleeding badly; the BSE Mid cap and Small cap indices were down by 0.90% and 0.30% respectively. 

The only gaining sectoral indices on the BSE were, CD up by 0.35% and PSU was up by 0.16%. While, TECk down by 1.21%, IT down by 1.15%, Auto down by 0.82%, Power down by 0.55% and Metal down by 0.52% were the top losers on the index.

The top gainers on the Sensex were Hero Honda up by 0.63%, NTPC up by 0.34%, Sterlite Industries up by 0.32%, Bharti Airtel up by 0.26% and ONGC was up by 0.13%.

On the flip side, Reliance Infra down by 5.18%, Reliance Communication down by 4.42%, TCS down by 2.01%, M&M down by 1.58% and HDFC down by 1.20% were the top losers on the index.

Meanwhile, the Empowered Committee of the Ministry of Power for development of inter-state transmission lines has recommended setting up of five new transmission lines with private sector participation at an estimated cost of Rs 6,485 crore with an anticipated length of 2,600 kilometre. The government is planning to develop the power transmission lines to improve the mass distribution from proposed coastal generation projects in Tamil Nadu and Andhra Pradesh.

These power projects, which would be awarded through tariff-based competitive bidding, are expected to be completed in the 12th five-year plan. These lines would help in evacuating power from projects in Nagapattanam and Cuddalore in Tamil Nadu, as well as from gas-based generation projects in Vemagiri and Rajamundry areas in Andhra Pradesh. In 2006, the power ministry issued guidelines for transparent procedure for facilitating competition in the transmission sector.

Power Minister Sushilkumar Shide said, "The approval for development of new transmission lines with the private sector participation will help in strengthening power transmission system in the country."

Among the five, three transmission lines at an estimated cost of Rs 3,640 crore, would be for power evacuation from planned projects in Andhra Pradesh. In the 12th five-year plan power sector is expected to see investments to the tune of $300-400 billion. Already many power transmission projects have been awarded through Power Finance Corporation and Rural Electrification Corporation.

The S&P CNX Nifty opened at 5,372.20; about 6 points higher compared to its previous closing of 5,366.40, and has touched a high and a low of 5,377.40 and 5,335.85 respectively.

The index is currently trading at 5,336.65, down by 29.75 points or 0.55%. There were 13 stocks advancing against 37 declines on the index.

The top gainers of the Nifty were Sun Pharma up by 0.86%, Gail up by 0.81%, Kotak Bank up by 0.77%, Hero Honda up by 0.64% and Bharti Airtel up by 0.62%.

Reliance Infra down by 5.00%, RCom down by 4.46%, Cairn down by 3.03%, Reliance Power by 2.21% and HCL Tech was down by 2.20%, were the major losers on the index.

Most of the Asian markets were trading in the red; Shanghai Composite was down 23.20 points or 0.88% to 2,619.62, Hang Seng was down 12.69 points or 0.06% to 21,682.57, KLSE Composite was down 2.05 points or 0.13% to 1,561.38, Seoul Composite was down 2.39 points or 0.12% to 2,029.54 and Taiwan Weighted was down by 63.92 points or 0.74% to 8,572.18.

On the flip side, Jakarta Composite was up 18.56 points or 0.50% to 3,740.86, Nikkei 225 was up 28.87 points or 0.31% to 9,380.27 and Straits Times was up by 20.99 points or 0.70% to 3,026.27.

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