The Indian markets remained in somber mood, declining for the fourth consecutive session on getting another weak economic data. Today, the start is likely to remain cautious lacking any major supportive cues, though some recovery can be seen in the latter trade. There will be some concern with the SBI’s internal report Ecowrap, that the revised FY'2011-12 gross domestic product (GDP) growth is likely to fall to 6 percent on account of a slump in manufacturing led by weak demand and difficulty in accessing funds. The first revised estimate of GDP for FY’12 was 6.2 percent and the second revised estimate for FY'12 is scheduled to be released on January 31. Meanwhile, Prime Minister's Economic Advisory Council Chairman C Rangarajan has asked for intensifying reforms, cutting subsidies for eco recovery. The telecom companies will remain buzzing with court ruling, allowing the Comptroller & Auditor General (CAG) to audit books of accounts of private telecom companies. Traders will also be watching the movement of rupee which has weakened in last session as the Federal Reserve begins paring its record stimulus.
The US markets ended marginally lower in last session on getting disappointing reading on service sector activity and traders even overlooked the report that factory orders rose by more than expected in November. The Asian markets have made a mixed start with some of the major indices trading lower by around half a percent. Japanese market too was trading in red despite some weakness in yen after 0.6 percent rise in last session.
Back home, Indian equity benchmarks continued their southward journey for fourth straight day with both the frontline gauges ending the session below their crucial 20,800 (Sensex) and 6,200 (Nifty) levels amid weak global cues. It turned out to be a lethargic day of trade for Indian equity markets where bourses traded mostly in the red during the session in a tight band. Sentiments remained dampened after activity in India’s services sector shrank at a faster pace in December as new orders dwindled, surprisingly, despite this firms hired at their fastest pace in five months. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, fell to 46.7 in December from 47.2 in November. Global cues too remained subdued with Asian markets ending mostly lower, moreover, European markets, too made a negative start. Back home, some concern came in after a study report by industry body Assocham, said that uncertainty over the outcome of the upcoming Lok Sabha elections is likely to cast a shadow on the economy. Sentiments also remained somber after the rupee depreciated and was trading at 62.31 per dollar at the time of equity markets closing versus its close of 62.16 on Friday tracking the dollar’s broad gains versus major currencies. Meanwhile, shares of power producers like Tata Power and Reliance Infrastructure slipped on reports that Maharashtra is planning to cut tariffs by around 15 per cent. However, losses remained capped after gross direct tax collections rose 12.33% to Rs 4.81 lakh crore during the first nine months of this financial year. Direct tax collections totaled Rs 4.29 lakh crore during the April-December period in 2012-13. Some support also came in from rally in sugar stocks like Shree Renuka Sugars, Bajaj Hindusthan, Balrampur Chini, Triveni Engineering etc. after the government notified the modalities in order to avail the sector with interest-free loans to the tune of Rs 6,600 crore from banks for payments to cane growers. Finally, the BSE Sensex plunged by 64.03 points or 0.31%, to settle at 20,787.30, while the CNX Nifty lost 19.70 points or 0.32% to settle at 6,191.45.
