)
The markets extend losses and are trading down by 0.7% each during the noon trades weighed down by IT and Auto shares.
At 2.55 PM, The 30-share Sensex is trading at 25,394 levels lower by 188 points and the 50-share Nifty is trading at 7,565 levels down by 57 points.
_________________________________________________(updated at 3.00 PM)
The markets are trading in the negative territory as the domestic and global investors turn cautious ahead of the Union Budget to be presented by the Finance Minister tomorrow in the Parliament.
The Economic Survey failed to bring any cheer for the market participants. In addition, weak global cues and delay of monsoons dampened the sentiments of the investors.
The Sensex is trading at 7,608 levels lower by 61 points and the Nifty is quoting at 7,608 mark down by 14 points.
Tracking the momentum, the BSE Midcap and Smallcap indices are trading down by 0.2% and 0.8%, each
Economic Survey
The government in the economic survey estimated the FY15 GDP growth at 5.4-5.9%, adding that it is likely to be on the lower side of the projection. FY15 current account deficit may be limited to about $45 bn or 2.1% of GDP, according to the survey.
Saying that inflation limits the scope for RBI to cut rates, the survey added that a formal monetary policy framework was needed for targeting CPI inflation. WPI inflation is likely to moderate by 2014-end, it added.
The survey also called for a new Fiscal Responsibility and Budget Management (FRBM) Act with teeth.
Local Currency
The rupee was trading at 59.70 compared with its Tuesday's close of 59.78, as market participants remained cautious ahead of the budget tomorrow.
Sectors & Stocks
The sectoral indices that showed major losses are BSE Auto and IT, down between 1-2% while BSE Oil and Gas and FMCG are the top gaining indices, up 1% each.
Heavy selling is evident in the technology pack, with TCS, Wipro and Infosys losing between 0.4-2%
Weak and uncertain monsoon rains is casting its shadow on the Auto stocks. M&M, Bajaj Auto, Hero Motocorp, Maruti Suzuki and Tata Motors have declined between 1-3%
The power space is dwindling in red since morning trades with NTPC and Tata Power down between 0.7-2%
shares of Tata Power dipped on reports that Tata Power and Reliance Power are betting big on renewable energy and will are willing to spend about Rs 1,500 crore each on clean energy projects.
Sun Pharma which zoomed yesterday is down by 0.5% on profit taking.
Some of the other notable losers are L&T, Coal India and Dr Reddy’s Lab down between 0.5-1.5%
On the flip side, Oil and Gas majors RIL and ONGC have gained between 0.5-2%. GAIL added 1.4%.
Shares of oil and gas companies surged in otherwise volatile market after Brent crude fell below $109 a barrel as Libya restarted an oilfield.
ONGC Videsh has raised US$2.23bn from global markets through long term bonds to refinance loans for acquiring stake in oil field in Mozambique. (BS)
Shares of Hindalco gained 3% after US rival Alcoa Inc reported better-than-expected earning. Its unit Novelis directly competes with Alcoa in the North American markets.
FMCG shares have gained with the survey saying that social sector schemes such as MNREGA, NRHM, SSA, need a complete revamp. ITC is up nearly 2% and Hindustan Unilever is up 0.7%.
The banking shares witness fresh buying with SBI, HDFC Bank, Axis Bank and ICICI Bank gaining between 0.1-0.7%
Among other shares, Claris Lifesciences has gained 4% to Rs 170 on BSE after sterile injectables manufacturer on Tuesday after market hours said US health regulator has found its manufacturing facility acceptable after an inspection.
Railway-related stocks continued to remain under pressure for the second straight day, falling by over 30% in two days on the BSE, following Railway Minister Sadananda Gowda unveiling his maiden Budget.
Asian Markets
Asian markets were trading lower as investors adopted a wait-and-watch policy ahead of earnings. Japanese shares ended marginally lower on the back of stronger yen and China inflation data. The benchmark Nikkei ended down 0.1% at 15,302.65.
The market breadth is weak on the BSE with 1,931 shares declining and 927 shares advancing.
