Market slips into red on profit booking

The Indian equity markets are moving south ways after paring some of their initial gains and currently trading in red in the late morning session. On the sectoral front Consumer Durables continued to remain as the top loser. Auto, oil & gas, banking, healthcare and capital goods stocks were also witnessing selling pressure, while Realty, IT and FMCG stocks are showing some resistance. Videocon was the top loser among the consumer durable stocks on the other hand Cairn India was the top gainer on Nifty on value buying post Cabinet cleared Cairn-Vedanta deal with some conditions yesterday. On the global front Asian markets were mostly trading higher, however slower manufacturing growth in China and Japan was capping the gains. Back home, market breadth continued to remain in positive; there were 1,533 shares on the gaining side against 952 shares on the losing side while 112 shares remained unchanged.

The BSE Sensex is currently trading at 18,818.21, down by 27.66 points or 0.15%. The index has touched high and low of 19,031.38 and 18,798.24 respectively. There were 18 stocks advancing against 12 declining on the index.

The broader indices continue to be positive; the BSE Mid cap and Small cap indices surged 0.42% and 0.58% respectively.

The top gaining sectoral indices on the BSE were, Realty up by 2.06%, IT up by 0.73%, FMCG up by 0.64%, PSU up by 0.41% and Power up by 0.38%. While, top losing sectoral indices on the BSE were Consumer Durable (CD) down by 1.09%, Auto down by 0.41, Oil & Gas 0.38%, Health Care (HC) down by 0.18%, Bankex down by 0.08%.

The top gainers on the Sensex were DLF up by 2.59%, Hindalco up by 2.15%, Rcom up by 1.78%, ONGC up by 1.31%, and Infosys up by 1.14%.

On the flip side, Bharti Airtel was down by 2.52%, Maruti Suzuki down by 1.89%, HUL down by 1.59%, RIL down by 1.52% and Tata Steel down by 1.33% were the only losers on the Sensex.

Meanwhile, India's external debt increased by 17.2% because of increase in overseas corporate borrowing, multilateral borrowing and short-term debt, as a result of which it increased to $305.9 billion in 2010-11. During 2009-10, India's external borrowing was at $261 billion.

As per the statement released by the Reserve Bank of India, the corporate overseas borrowings rose as much as 28.9% and short-term borrowings increased by 21.2%. It was followed by NRI deposits which rose by 16.9% at $51.6 billion while multilateral debt increased by 15.8% at $ 48.4 billion. The rise in NRI deposits was largely on account of increase in NRO deposits and FCNR (B) deposits and partly due to valuation effects, RBI's statement said. Although, the debt service ratio reduced to 4.2% in 2010-11 from 5.5% in 2009-10. Of the overall external, the long term external debt stood at $240.9 billion whereas short-term external debt at $65 billion.

The Apex bank said, the valuation effect reflecting the depreciation of the US dollar against other major global currencies and Indian rupee resulted in an increase in India's external debt by $6.5 billion during 2010-11. This implies that excluding the valuation effects, the stock of external debt as at end-March 2011 would have increased by $38.4 billion over the level at end-March 2010, RBI added.

The S&P CNX Nifty is currently trading at 5,635.00, down by 12.40 points or 0.22%.  The index has touched a high and low of 5,705.80 and 5,629.20 respectively. There were 23 stocks advancing against 24 declines and 3 remained unchanged on the index.

The top gainers of the Nifty were Cairn up by 3.90%, DLF up by 2.68%, Hindalco Industries up by 2.38%, IDFC up by 2.10%, Gail up by 1.77%.

On the flip side, Bharti Airtel down by 2.96%, Maruti Suzuki down by 1.98%, Ranbaxy down by 1.91%, HUL down by 1.73% and Tata Steel down by 1.71% were the major losers on the index.

Asian equity markets are trading in a mix note; Shanghai Composite up 0.18%, Jakarta Composite was up by 1.55%, Nikkei 225 was up 0.44%, Straits Times was up 0.58%, Seoul Composite was up 1.25% and Taiwan Weighted was up by 1.01%.

On the flip side KLSE Composite was down by a meager 0.02 points.

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