Sensex down 43 pts on profit bookinghttps://indianexpress.com/article/news-archive/web/sensex-down-43-pts-on-profit-booking/

Sensex down 43 pts on profit booking

Sensex had gained over 190 points in the previous two sessions,fell by 43.04 points to 16,853.59.

The BSE benchmark index Sensex declined by over 43 points in early trade today on profit- booking by speculators after recent gains,amid mixed trend at the Asian markets.

The 30-share barometer,which had gained over 190 points in the previous two sessions,fell by 43.04 points,or 0.25 per cent,to 16,853.59 with stocks of oil and gas,metal,and banking sectors succumbing to profit-booking.

Similarly,the wide-based National Stock Exchange index Nifty declined by 14.10 points,or 0.28 per cent,to 5,106.45.

Brokers said besides booking of profit by participants at prevailing levels,mixed trend on Asian bourses following overnight weakness on the US market despite Federal Reserve extending stimulus measures for six months to boost the flagging economy,influenced the sentiment here.

In the Asian region,Hong Kong’s Hang Seng index fell by 0.25 per cent,while Japan’s Nikkei Index edged up by 0.96 per cent. The US Dow Jones Industrial Average ended 0.10 per cent lower yesterday.

Pre-Open: Sensex,Nifty stocks to watch

GLOBAL MARKETS

* The near-month derivative contract for India’s NSE index at Singapore Exchange fell 0.5 percent,while the MSCI Asia-Pacific ex-Japan also receded 1 percent.

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* Asian stocks struggled and commodities fell broadly on Thursday after the Federal Reserve ramped up monetary stimulus by expanding Operation Twist,but disappointed some investors who had been hoping for more aggressive measures.

* US stocks edged lower on Wednesday after the Federal Reserve acted to aid the fragile economy with stimulus measures that were in line with market expectations but went no further.

FACTORS TO WATCH

* An Indian ministerial panel meets Thursday evening to discuss the base price for an upcoming 2G mobile airwaves auction. (1130 GMT)

* India’s weather office to release weekly rainfall data which is expected to show improvement from the previous weeks when rains were 50 percent below average.

INDIAN STOCKS TO WATCH

FINANCIAL/REGULATORY

* The economic slowdown,coupled with pressure on profitability,has pushed India Inc’s default rate to a 13-year high of 6.3 percent for the fiscal ended March 2012. The pain continued in April when it stood at 5.2 percent.

* A committee set up by the Securities and Exchange Board of India will scrutinise all auditor qualifications listed in balance sheets of listed companies and ask the management to restate numbers in case of violation of accounting rules.

* Top officials close to the development said that SEBI would discuss this issue at its board meeting on June 26.

ENERGY/COMMODITIES

* India’s oil products demand is likely to grow an annual 6.1 percent in 2012/13,the highest in five years,as the government’s thrust on infrastructure to boost the economy is set to spur consumption of industrial fuels.

* The power ministry in the next couple of weeks will submit a proposal to the Union Cabinet proposing a levy of 21 percent on imported power equipment,according to a senior government official.

* Power companies have stoutly resisted any increase in duty on equipment imports,especially after they have become costlier as the rupee had depreciated.

* The finance and power ministries are close to finalising a new package for the debt-laden power distribution firms,after the RBI and other banks rejected an earlier move to refinance their liabilities.

* The country is reeling under a severe power shortage that has forced people to suffer 16-hour supply cuts in some regions as fuel scarcity has hit generation and the precarious health of utilities has ravaged the finances and payment schedules in the sector.

* New Delhi’s electricity regulator has confirmed it would announce new power tariffs in the first half of July,which sources say could be more than last year’s 22 percent hike,along with a new code spelling out penalties on distribution companies if they fail to deliver services on time.

* Coal India chairman S Narsing Rao on Wednesday said the miner was unwilling to make changes in the penalty clause of fuel supply agreements,since that would be detrimental to the company’s financial interests.

PROPERTY

* Analjit Singh,chairman of the hospitals-to-insurance group Max India,has shelved plans to build a five-star hotel in Noida’s premium Delhi One project over concerns that upcoming hotels in the city would lead to a glut of upmarket rooms,according to people close to the development.

* Godrej Properties is looking to expand its presence in Gujarat,Pirojsha Godrej,managing director and chief executive officer,said.

PHARMA

* US drug maker Merck has begun talks with the promoters of the unlisted Micro Labs,to purchase the company,a person with direct knowledge of the development said.

INDUSTRIAL

* The Ministry of Defence has chosen a private sector consortium to compete with Bharat Electronics to develop a backbone communications network for the 21st century battlefield,according to the review of a letter from the ministry. The project is worth an estimated 100 billion rupees.

* Mahindra and Mahindra is looking to increase its market share in the scooter market by up to 3 percent,with a series of new launches.

* According to people close to Titan Industries,the Bangalore-headquartered entity is carrying out in-depth market research to extend the ‘Titan’ brand into leather accessories such as clutches and belts.

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* Tata Group is developing an electric car that is expected to be priced below $20,000 in partnership with France’s Dassault Systemes,said Kevin Fisher,an executive at Tata Technologies.

MEDIA

* Sun TV Network Ltd has budgeted 1.8-2 billion rupees as capital expenditure (capex) for the current financial year,which will mostly be spent on programming operations and upgrading equipment,said V C Unnikrishnan,chief financial officer.

* Besides,the company has lined up 2.5-2.6 billion rupees to acquire movies for distribution.

OTHER FACTORS TO WATCH

* Indian debt/FX factors to watch

* Dollar resilient after Fed largess,China eyed

* Oil hits 18-month low as stockpiles rise

* Foreign institutional investor flows

* For closing rates of Indian ADRs

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