Sensex falls below 19,500 ahead of Q1 CAD data
MUMBAI: The S&P BSE Sensex
extended intraday losses and was hovering near 19,500 level ahead of
the current account deficit (CAD) data and weak cues from Asian peers.
According to ET Now Poll estimates, India's CAD for 1Q FY14 is likely to be at $23 billion vs $18.1 billion, Q-o-Q. According to analysts, weak rupee and GDP growth contraction are likely to impact CAD.
"Traders will be eyeing the current account deficit (CAD) data to be released by RBI later in the day, which may have widened to 4 percent of GDP in the first quarter due to a surge in gold imports and a deteriorated trade gap," said LKP Securities report.
"Government aims to contain current account 3.7 percent of GDP for the entire fiscal. The oil companies will be reacting to the draft report of the panel of experts led by former Planning Commission member Kirit S Parikh who suggested continuation of the current system of calculating revenue losses on the basis of trade parity and has asked to deregulate diesel prices in two years," the report added.
At 10:30 a.m.; the 30-share index was at 19,509.76, down 217.51 points or 1.10 per cent. It touched a high of 19,651.31 and a low of 19,495.24 in trade today.
The Nifty was at 5,767.45, down 65.75 points or 1.13 per cent. The index touched intraday high of 5,810.20 and a low of 5,763.80
"The trend deciding level for the day is 19,794 / 5,854 levels. If indices trade above these levels during the first half-an-hour of trade then we may witness a further rally up to 19,914 - 20,102 / 5,889 - 5,944 levels. However, if they trade below 19,794 / 5,854 levels for the first half-an-hour of trade then it may correct up to 19,607 -19,487 / 5,799 - 5,764 levels," said Angel Broking note.
The S&P BSE Midcap Index was down 0.53 per cent and the S&P BSE Smallcap Index slipped 0.27 per cent.
Among the sectoral indices, the S&P BSE Bankex Index was down 2.44 per cent, the S&P BSE Power Index was 2.16 per cent lower and the S&P BSE Capital Goods Index declined 1.82 per cent.
The S&P BSE IT Index was up 1.03 per cent.
BHELBSE -3.92 % (4.10 per cent), Tata SteelBSE -5.33 % (4.05 per cent), Bharti AirtelBSE -3.57 % (3.67 per cent), ICICI BankBSE -3.25 % (3.61 per cent) and Jaiprakash Associates (3.28 per cent) were among the top Nifty losers.
Shares of Tata Steel fell as sentiment turned bearish after China's PMI data for the month of September was below estimate.
BPCLBSE 1.22 % (2.15 per cent), Lupin (1.53 per cent), HCL Tech (1.50 per cent), Infosys (1.49 per cent) and Sesa Goa (1.12 per cent) were among the index gainers.
The market breadth was negative on the NSE with 376 gainers against 727 losers.
The foreign institutional investors sold shares worth Rs 244.95 crore while domestic institutional investors were net sellers worth Rs 115.27 crore on Friday as per the provisional data from the National Stock Exchange.
The Asian markets were witnessing some selling pressure after China's lower-than-expected September PMI data. Nikkei 225 was down 1.27 per cent, Hang Seng was down 1.23 per cent, Taiwan Weighted was 0.59 per cent lower and Seoul Composite slipped 0.49 per cent.
According to ET Now Poll estimates, India's CAD for 1Q FY14 is likely to be at $23 billion vs $18.1 billion, Q-o-Q. According to analysts, weak rupee and GDP growth contraction are likely to impact CAD.
"Traders will be eyeing the current account deficit (CAD) data to be released by RBI later in the day, which may have widened to 4 percent of GDP in the first quarter due to a surge in gold imports and a deteriorated trade gap," said LKP Securities report.
"Government aims to contain current account 3.7 percent of GDP for the entire fiscal. The oil companies will be reacting to the draft report of the panel of experts led by former Planning Commission member Kirit S Parikh who suggested continuation of the current system of calculating revenue losses on the basis of trade parity and has asked to deregulate diesel prices in two years," the report added.
At 10:30 a.m.; the 30-share index was at 19,509.76, down 217.51 points or 1.10 per cent. It touched a high of 19,651.31 and a low of 19,495.24 in trade today.
The Nifty was at 5,767.45, down 65.75 points or 1.13 per cent. The index touched intraday high of 5,810.20 and a low of 5,763.80
"The trend deciding level for the day is 19,794 / 5,854 levels. If indices trade above these levels during the first half-an-hour of trade then we may witness a further rally up to 19,914 - 20,102 / 5,889 - 5,944 levels. However, if they trade below 19,794 / 5,854 levels for the first half-an-hour of trade then it may correct up to 19,607 -19,487 / 5,799 - 5,764 levels," said Angel Broking note.
The S&P BSE Midcap Index was down 0.53 per cent and the S&P BSE Smallcap Index slipped 0.27 per cent.
Among the sectoral indices, the S&P BSE Bankex Index was down 2.44 per cent, the S&P BSE Power Index was 2.16 per cent lower and the S&P BSE Capital Goods Index declined 1.82 per cent.
The S&P BSE IT Index was up 1.03 per cent.
BHELBSE -3.92 % (4.10 per cent), Tata SteelBSE -5.33 % (4.05 per cent), Bharti AirtelBSE -3.57 % (3.67 per cent), ICICI BankBSE -3.25 % (3.61 per cent) and Jaiprakash Associates (3.28 per cent) were among the top Nifty losers.
Shares of Tata Steel fell as sentiment turned bearish after China's PMI data for the month of September was below estimate.
BPCLBSE 1.22 % (2.15 per cent), Lupin (1.53 per cent), HCL Tech (1.50 per cent), Infosys (1.49 per cent) and Sesa Goa (1.12 per cent) were among the index gainers.
The market breadth was negative on the NSE with 376 gainers against 727 losers.
The foreign institutional investors sold shares worth Rs 244.95 crore while domestic institutional investors were net sellers worth Rs 115.27 crore on Friday as per the provisional data from the National Stock Exchange.
The Asian markets were witnessing some selling pressure after China's lower-than-expected September PMI data. Nikkei 225 was down 1.27 per cent, Hang Seng was down 1.23 per cent, Taiwan Weighted was 0.59 per cent lower and Seoul Composite slipped 0.49 per cent.
RAHUL KUMAR GUPTA
PGDM 1st year
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