Benchmarks plunge on bleak global cues; technology counter pulls the indices down
Key benchmark indices have started loosing ground while approaching the last hour of trade. Both the benchmark indices, Nifty and Sensex, are trading below their psychological levels of 5,400 and 18,000 respectively. Although, BSE???s sensitive index – Sensex did manage to touch the crucial 18000-mark briefly in the afternoon session, selling pressure at higher levels dragged the benchmark below this level. However, the BSE mid-cap and small-cap indices were firm in the green with gains of around 0.59% and 0.54% respectively. The Asian markets settled mostly in the negative terrain with Nikkei 225 down by 1.64% being the major laggard in the pack. Similarly, major European markets are also trading deep along with weak US index futures. Back home, TECk, IT and Realty segments were the major laggards while Consumer Durables (CD) and Bankex counters were the main gainers in the BSE sectoral space. With no major cues in sight, markets are likely to settle in negative terrain. The market breadth on the BSE was in favour of advances, in the ratio of 1458:1421 while 103 scrips remained unchanged.
The BSE Sensex declined 59 points or 0.33% to 17,933.00. The index touched a high and a low of 18,000.35 and 17,899.02, respectively.
The BSE Mid-cap and Small-cap indices advanced 0.59% and 0.54%, respectively.
Consumer Durables (CD) up 0.27%, Bankex up 0.16%, Healthcare (HC) up 0.15% and Oil & Gas up 0.13% were the only gainers in the BSE sectoral space.
On the other hand, TECk down 1.03%, IT down 0.87%, Realty down 0.81%, Power down 0.63% and Capital Goods (CG) down by 0.51% were the main losers in the BSE sectoral space.
Meanwhile, Minister of state for finance, S.S. Palanimanickam has said in a written reply in parliament that it would be premature to raise tax on iron ore exports,providing a temporary relief to exporters and miners of the commodity.India last raised the export duty on iron ore lumps in April to 15% from 10%. While in Last December last year it slapped a 5-percent export duty on iron ore fines.
The minister stated that ‘The union steel ministry has recommended a regime of export duty on iron ore as one of the measures to check the price rise and increase domestic availability of iron ore.’ ‘However, since export duty had been increased on iron ore lumps from 10 (percent) to 15 percent on 29th April, it was felt that any further change so soon, would be premature.’
The steel industry has frequently lobbied for a ban on iron ore export or at least for further raising the export duty on it so that more of the commodity is available for local use at low prices. A day earlier JSW Steel, the country’s largest private steel maker by domestic capacity, has sought banning iron ore export in a phased manner in next five years. The company???s Vice-Chairman and Managing Director Sajjan Jindal said that ‘Iron ore exports should be gradually banned. I would say that there should be a calibrated approach towards banning it, say in next five years bring down export of iron ore to zero,’
Karnataka Chief Minister B S Yeddyurappa and Steel Minister Virbhadra Singh had already sought imposition of ban on such shipments saying the move may help curbing illegal mining practices in the country. The ministers rather called for value-addition on the mineral in the country.
M&M up 1.59%, SBI up 1.31%, Tata Steel up 1.12%, HDFC Bank up 0.99% and Hindalco Inds up 0.68% were the major gainers on the Sensex.
On the flip side, Bharti Airtel down 3.27%, Hero Honda down 2.97%, Tata Motors down 2.15%, DLF down 1.78% and HUL down 1.77% were the major losers on the index.
In a major setback to the state owned telecom companies, Bharat Sanchar Nigam (BSNL), Mahanagar Telephone Nigam (MTNL) and the Communications Minister A Raja, the Finance Minister Pranab Mukherjee on Thursday rejected a proposal for refund of the Rs 29,598 crore paid by the two companies for third generation (3G) and broadband wireless access (BWA) spectrum.
Pranab Mukherjee struck down the request put forth by Telecoms Minister A Raja citing legal complications that might arise if the fees were returned. Raja called on him at his office in the Parliament house for a brief meeting. Though, after the refusal Raja has been said to have proposed that the refund could be made in phases over the next few years. But when Mukherjee refused to budge, Raja cited the threat by staff unions of these companies to go on strike from next month if the demand for a refund was not met by the government. The unions of the state owned tecos have threatened to go on a three-day strike from September 21, followed by an indefinite strike, if the government doesn’t return the 3G and BWA money.
The S&P CNX Nifty shed 20.65 points or 0.38% to 5388.25. The index touched a high and a low of 5413.25 and 5376.55, respectively.
HCL Tech up 2.88%, Ranbaxy Laboratories up 2.59%, Idea up 1.89%, Punjab National Bank (PNB) up 1.80% and M&M up 1.76% were the top gainers on the Nifty.
On the other hand, ABB down 4.20%, Hero Honda down 3.27%, Siemens down 3.20%, Bharti Airtel down 3.16% and GAIL down 2.57% were the top losers on the index.
The other Asian indices settled mostly in the red with an exception of KLSE Composite, which gained 0.18%.
Shanghai Composite declined 0.40%, Hang Seng decreased 0.30%, Jakarta Composite shed 0.86%, Straits Times declined 0.43%, Nikkei 225 declined 1.64%, Seoul Composite decreased 0.65% and Taiwan Weighted slipped 0.49%.
Major European markets were trading in the negative terrain. CAC-40 down 0.62%, DAX down 0.43% and FTSE 100 was lower by 0.45%.
Gainers/Losers | Value/Volume Toppers | Advance/Declines | Block Deals | Bulk Deals
Did not find what you were looking for?
