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The Sensex and Nifty continue to dwindle in red due to heavy selling in oil & gas stocks.
Domestic sentiment was also dampened due to offloading of positions by participants ahead of expiry of June month F&O later today.
The benchmark indices Sensex was trading at 25,183, down 130 points and Nifty was trading at 7,535, down 34 points.
The BSE Midcap outshined the largecap counterparts and was up 0.06% whereas BSE Smallcap was in tandem with the benchmark indices and lost 0.02%
Asian Markets:
Asian shares swung higher on Thursday as weak U.S. growth seemed to further delay the day when interest rates might rise, prompting investors to plow funds into riskier assets in a desperate search for returns. Japan’s Nikkie appreciated 0.3%, Straits Times Index climbed 0.47%, Hong Kong'Hang Seng Index gained 0.9% and Shanghai Composite Index rose 0.6%
A shockingly poor reading on the U.S. economy for the first quarter also pressured the dollar while giving a lift to most commodities and resource-related currencies. Globally, the longer term bond prices rose as investors sought out the back end of the yield curve for better returns.
Local currency:
The rupee is trading at 60.15/16 versus its previous close of 60.1250/1350, tracking weakness in the equity market.
Commodities:
Prices of vegetables and onions continue to rise due to indequate June rainfall, among the lowest in a century. The rainfall deficit for the country is 37%, even before El Nino has developed.
Gold slipped as stronger equities dented the metal's safe-haven appeal and investors largely shrugged off weak U.S. economic growth numbers in favour of more recent data.
U.S. crude oil inched higher on Wednesday after news of a U.S. government decision to permit exports of lightly refined oil, while Brent oil fell as fears of supply cuts from Iraq receded.
Pre-Budget cheer:
The Auto, Capital goods and Consumer durables are likely to gain from extended excise duty cuts from 8% to the earlier 12% for another six months. This measure will boost consumer revival and will have a beneficial impact on the economy.
BSE Auto was up 0.3% with Bajaj Auto, Hero Motocorp and M&M up between 0.1%-0.4%, whereas Maruti Suzuki was down 0.6%. Technical analyst, SMC GlobalMudit Goyal adds Maruti is continuously trading in higher highs and higher lows on daily chart which is considered to be bullish. Key support from current levels id 2350, breakout can dragged the stock below 2200 levels.
Meanwhile, Capital goods index advanced 0.8% with Larsen and BHEL gaining 0.7% and 0.9%, each and Consumer durables index surged 0.2%, with Blue Star being the biggest gainer .
Deferment in oil price hike is consumer’s gain:
Shares of oil and gas companies experienced pressure and fell up to 7% after the government defers its decision on gas price hike by three months till December 31, 2014. Also, the government also clarified that there is no proposal from the petroleum ministry for any hike in LPG or kerosene prices. It is good news for the consumers.
BSE Oi l& Gas index shed 3% with Oil and Natural Gas Corporation (ONGC), Oil India, Hindustan Petroleum Corporation (HPCL), Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC) and Reliance Industries (RIL) lost between 3-7% on the Bombay Stock Exchange (BSE).
Losers and Gainers on the 30-share index:
BSE IT index dropped 0.14% with TCS and Infosys down 0.55-0.6%, each. Mudit Goyal adds TCS was consolidating in the wide range of 2050-2300 levels from past few months with positive bias and recently got the breakout of same with huge buying interest. Therefore, one should hold the stock for the upside target of 2450-2500 levels.
Among financials, HDFC twins lost between 0.4%-1.3%. In contrast, Axis Bank, ICICI Bank and SBI gained 0.5%, each
In FMCG pocket, ITC and HUL dipped 0.1% and 1.2%, each
In the Pharma space, Sun Pharma and Cipla lost between 0.4%-0.6%, whereas, Dr Reddy’s Lab gained 1%
BSE Metal index was up marginally up by 0.09% with Tata Steel and Coal India up 0.02% and 0.08%, respectively
Hot Stocks:
NRB Bearings rallied 12% to Rs 94.50 on National Stock Exchange after the company said Sundaram Mutual Fund has bought around one million shares of the company through open market.
