First day of 2014 turned out to be a lackluster one for the Indian equity markets as the benchmark equity indices failed to hold on to their initial gains and settled the session slightly in the red. Frontline gauges traded in a very tight band throughout the session in the absence of overseas cues as all the major Asian as well as European markets remained closed on account of New Year. Domestic markets started the session on a positive note, supported by report that foreign institutional investors (FIIs) bought shares worth a net Rs 309.70 crore on December 31, 2013. While, the output of eight core sector industries grew 2.5% during April-November, showing signs of recovery. Core sector grew 1.7 per cent in November after shrinking 0.6 per cent in October, though it was much lower than 5.8 per cent growth last November.
However, markets started moving southward on report that India’s fiscal deficit in the April-November period reached 94% of the targeted budgetary estimate of Rs 5.42 lakh crore, raising concerns that India may well overshoot its ambitious target of containing the deficit at 4.8% of GDP. Some cautiousness also crept in after the retail inflation for industrial workers inched up marginally to 11.47 per cent in November compared to 11.06 per cent in October and 9.55 per cent in the same month last year due to higher prices of food items.
Sentiments also remained dampened after the Indian rupee continued trading weak due to dollar buying from oil importers. On the currency front, the rupee was at Rs 61.90 per dollar at the time of equity markets closing as compared to previous close of Rs 61.80 per dollar. Meanwhile, software and technology counters, which rose to their record high earlier this week, edged lower on profit booking. Select stocks from metal counter viz. Hindalco, Hindustan Zinc and JSW steel edged lower after China official manufacturing data shows a dip in growth in December.
However, losses remained capped as some support came in after Commerce and Industry Minister Anand Sharma indicated that government will go for further liberalisation of the FDI policy in the coming weeks to attract foreign investments into the country. Besides, proposing 100 per cent FDI through automatic route in the cash-starved railway sector, the Department of Industrial Policy and Promotion (DIPP) has also proposed to de-license and de-reserve few areas of the sector. Stock related to realty sector remained on buyers’ radar, despite the Maharashtra government increasing the ready reckoner rates for Mumbai by 20 percent effective today.
The NSE’s 50-share broadly followed index Nifty slipped by just two points and managed to end above its psychological 6,300 level, while Bombay Stock Exchange’s sensitive Index -- Sensex dropped by over thirty points to end below the psychological 21,150 mark.
Broader markets, however, outperformed benahmarks and ended the session with gain of around half a percent. Moreover, the market breadth remained in favour of advances, as there were 1,600 shares on the gaining side against 897 shares on the losing side, while 132 shares remained unchanged.
Finally, the BSE Sensex declined by 30.20 points or 0.14%, to settle at 21140.48, while the CNX Nifty lost 2.35 points or 0.04% to settle at 6,301.65.
The BSE Sensex touched a high and a low of 21244.35 and 21133.82, respectively. The BSE Mid cap index was up by 0.47%, while the Small cap index gained 1.50%.
The top gainers on the Sensex were Bharti Airtel up 2.16%, NTPC up 0.88%, Sun Pharma up 0.82%, Coal India up 0.66%, and Hero MotoCorp up 0.54%, on the flip side Wipro down 1.13%, Tata Power down 1.09%, TCS down 0.79%, RIL down 0.68%, and BHEL down by 0.62%,were the top losers on the index.
On the BSE Sectoral front Realty up by 2.89%, Consumer Durables up by 0.89%, Healthcare up by 0.53%, PSU up by 0.28%, and Metal up by 0.21%, were the top gainers, while IT down by 0.65%, Oil & Gas down by 0.37% and Teck down by 0.20%,were the only losers on the sectoral front.
Meanwhile, disappointed over the slowdown in the highway projects, the National Highways Authority of India (NHAI) has blamed abnormal delays in getting environment and forest clearances. The NHAI has noted that ministry of environment and forests (MoEF), through its recently changed policy, has created hurdles for environment and forest clearances, which have affected highway projects worth about Rs 20,000 crore and forced the NHAI to approach Supreme Court.
The NHAI highlighted that over the past two years, the highway sector is struggling with slowdown as around 40 highway projects have failed to commence or be completed. In the current fiscal, NHAI has managed to give just 479 km of road projects against its target of 3,000 km by September. In the previous financial year, only 1,116 km of projects were awarded against a target of 9,500 km. Furthermore, NHAI has stressed that it could have terminated the contracts and blacklisted developers for not fulfilling their contractual obligation however that would have meant annoying a large number of private operators.
Meanwhile, Road and Highway ministry has been taking measures to speed up the implementation of road projects. Recently, in order to attract road developers and to revive country’s highway sector, the ministry had approved a policy that allows infrastructure developers to exit highway projects by divesting their entire stake. New policy will help to expedite implementation of road infrastructure in the country and insulate the highways authority from heavy financial claims and unnecessary disputes. Further, the ministry would like to make provisions in the public-private partnerships (PPPs) contracts that allow re-negotiations as PPPs are long-term partnerships spread over 20-25 years.
The CNX Nifty touched a high and low of 6,327.20 and 6,298.25 respectively.
The top gainers on the Nifty were Bharti Airtel up by 2.56%, Bank of Baroda up by 2.24%, DLF up by 2.19%, Ranbaxy Laboratories up by 2.13%, and Asian Paints up by 1.88%, On the other hand, Wipro down by 1.32%, BHEL down by 1.10%, Tata Power Company down by 1.04%, TCS down by 0.88%, and Reliance Industries down by 0.79%, were the top losers.
All the major Asian equity indices were not trading, while the European markets were also closed for the day on account of New Year's Eve.
However, markets started moving southward on report that India’s fiscal deficit in the April-November period reached 94% of the targeted budgetary estimate of Rs 5.42 lakh crore, raising concerns that India may well overshoot its ambitious target of containing the deficit at 4.8% of GDP. Some cautiousness also crept in after the retail inflation for industrial workers inched up marginally to 11.47 per cent in November compared to 11.06 per cent in October and 9.55 per cent in the same month last year due to higher prices of food items.
Sentiments also remained dampened after the Indian rupee continued trading weak due to dollar buying from oil importers. On the currency front, the rupee was at Rs 61.90 per dollar at the time of equity markets closing as compared to previous close of Rs 61.80 per dollar. Meanwhile, software and technology counters, which rose to their record high earlier this week, edged lower on profit booking. Select stocks from metal counter viz. Hindalco, Hindustan Zinc and JSW steel edged lower after China official manufacturing data shows a dip in growth in December.
However, losses remained capped as some support came in after Commerce and Industry Minister Anand Sharma indicated that government will go for further liberalisation of the FDI policy in the coming weeks to attract foreign investments into the country. Besides, proposing 100 per cent FDI through automatic route in the cash-starved railway sector, the Department of Industrial Policy and Promotion (DIPP) has also proposed to de-license and de-reserve few areas of the sector. Stock related to realty sector remained on buyers’ radar, despite the Maharashtra government increasing the ready reckoner rates for Mumbai by 20 percent effective today.
The NSE’s 50-share broadly followed index Nifty slipped by just two points and managed to end above its psychological 6,300 level, while Bombay Stock Exchange’s sensitive Index -- Sensex dropped by over thirty points to end below the psychological 21,150 mark.
Broader markets, however, outperformed benahmarks and ended the session with gain of around half a percent. Moreover, the market breadth remained in favour of advances, as there were 1,600 shares on the gaining side against 897 shares on the losing side, while 132 shares remained unchanged.
Finally, the BSE Sensex declined by 30.20 points or 0.14%, to settle at 21140.48, while the CNX Nifty lost 2.35 points or 0.04% to settle at 6,301.65.
The BSE Sensex touched a high and a low of 21244.35 and 21133.82, respectively. The BSE Mid cap index was up by 0.47%, while the Small cap index gained 1.50%.
The top gainers on the Sensex were Bharti Airtel up 2.16%, NTPC up 0.88%, Sun Pharma up 0.82%, Coal India up 0.66%, and Hero MotoCorp up 0.54%, on the flip side Wipro down 1.13%, Tata Power down 1.09%, TCS down 0.79%, RIL down 0.68%, and BHEL down by 0.62%,were the top losers on the index.
On the BSE Sectoral front Realty up by 2.89%, Consumer Durables up by 0.89%, Healthcare up by 0.53%, PSU up by 0.28%, and Metal up by 0.21%, were the top gainers, while IT down by 0.65%, Oil & Gas down by 0.37% and Teck down by 0.20%,were the only losers on the sectoral front.
Meanwhile, disappointed over the slowdown in the highway projects, the National Highways Authority of India (NHAI) has blamed abnormal delays in getting environment and forest clearances. The NHAI has noted that ministry of environment and forests (MoEF), through its recently changed policy, has created hurdles for environment and forest clearances, which have affected highway projects worth about Rs 20,000 crore and forced the NHAI to approach Supreme Court.
The NHAI highlighted that over the past two years, the highway sector is struggling with slowdown as around 40 highway projects have failed to commence or be completed. In the current fiscal, NHAI has managed to give just 479 km of road projects against its target of 3,000 km by September. In the previous financial year, only 1,116 km of projects were awarded against a target of 9,500 km. Furthermore, NHAI has stressed that it could have terminated the contracts and blacklisted developers for not fulfilling their contractual obligation however that would have meant annoying a large number of private operators.
Meanwhile, Road and Highway ministry has been taking measures to speed up the implementation of road projects. Recently, in order to attract road developers and to revive country’s highway sector, the ministry had approved a policy that allows infrastructure developers to exit highway projects by divesting their entire stake. New policy will help to expedite implementation of road infrastructure in the country and insulate the highways authority from heavy financial claims and unnecessary disputes. Further, the ministry would like to make provisions in the public-private partnerships (PPPs) contracts that allow re-negotiations as PPPs are long-term partnerships spread over 20-25 years.
The CNX Nifty touched a high and low of 6,327.20 and 6,298.25 respectively.
The top gainers on the Nifty were Bharti Airtel up by 2.56%, Bank of Baroda up by 2.24%, DLF up by 2.19%, Ranbaxy Laboratories up by 2.13%, and Asian Paints up by 1.88%, On the other hand, Wipro down by 1.32%, BHEL down by 1.10%, Tata Power Company down by 1.04%, TCS down by 0.88%, and Reliance Industries down by 0.79%, were the top losers.
All the major Asian equity indices were not trading, while the European markets were also closed for the day on account of New Year's Eve.
