Markets continue to trade in red: CG stocks drag

The Indian equity markets continue to trade in red with sustained selling pressure on some front line stocks in the late morning session. Investors were mostly seen treading a cautious path without any positive or negative trigger from the market. BHEL falling over 2% was the leading loser on Nifty and Sensex on reports that government may consider divestment in the company. On sectoral front, reality sector was witnessing losses after the previous sessions' up move. Power, Capital goods and FMCG companies' shares were on sellers' radar. However, auto and metal stocks were quite supportive to the market. On the global front Asian markets were trading mixed as investors remain wary about Europe's sovereign-debt problems. Back home, market breadth was in favors of advances; there were 1,287 shares on the gaining side against 1,070 shares on the losing side while 102 shares remained unchanged.

The BSE Sensex is currently trading at 18,749.71, down by 64.34 points or 0.34%. The index has touched a high and low of 18,837.88 and 18,721.56 respectively. There were 11 stocks advancing against 19 declines on the index.

The broader indices were also trading on a mixed note; the BSE Mid cap index was down by 0.11% while, Small cap index was up by 0.29%.

On the BSE Sectoral front, Auto up by 0.87% and Metal up by 0.25% were the only gainers; while Realty down by 1.23%, Power down by 1.09%, CG down by 0.87%, FMCG down by 0.68% and Oil & Gas down by 0.51% were the top losers on the index.

The top gainers on the Sensex were M&M up by 1.45%, Tata Steel up by 1.28%, Bajaj Auto up by 1.22%, Maruti Suzuki up by 0.63% and Tata Motors was up by 0.59%.

On the flip side, BHEL down by 3.31%, RCom down by 2.19%, DLF down by 1.43%, Jindal Steel down by 1.35% and Reliance Infra down by 1.33% were the top losers on the index.

Meanwhile, the first quarter of present financial year 2011-12 has registered an increase of 216% in the service tax evasion and 98% rise in the central excise. The director general of central excise intelligence (DGCEI), revenue intelligence arm of the Central Board of Excise and Customs (CBEC), has registered 83 cases of service tax evasion worth Rs 1651.3 crore as against Rs 522.2 crore in the same period of previous financial year.

During the last financial year, DGCEI had registered 117 cases of service tax evasion amounting to Rs 552.2 crore, the amount of evasion are expected to increase further as the investigation in some of the service tax evasion are in progress. Some of the important findings of service tax evasion were in renting of immovable property service, business support service, telecom service, management, maintenance or repair and commercial or industrial construction services.

During the investigation, the charges recovered by the investigating agency increased by 164% to Rs 205 crore, towards unpaid central excise and service tax during the present quarter as against a recovery of Rs 77.6 crore in the same period in the last financial year.

Service sector accounts for the 60% of the India's Gross Domestic Product and has around 20% share in the Indirect tax collection.

The S&P CNX Nifty is currently trading at 5,627.80, down by 22.70 points or 0.40%. The index has touched a high and low of 5,659.85 and 5,621.00 respectively. There were 17 stocks advancing against 33 declines on the index.

The top gainers of the Nifty were SAIL up by 2.74%, M&M up by 1.37%, Tata Steel up by 1.19%, Bajaj Auto up by 1.01% and Sterlite Inds up by 0.82%.

BHEL down by 3.48%, RCOM down by 2.38%, Cairn down by 2.16%, IDFC down by 2.10% and Power Grid Corporation down by 1.95% were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite declined 0.15%, Hang Seng descended 0.09%, Jakarta Composite slid 0.32%, and Straits Times skid 0.78%.

On the flip side, Nikkei 225 gained 0.13%, KLSE Composite was up by 0.03%, Seoul Composite added 0.79% and Taiwan Weighted up by 0.11% 

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