The Indian markets moved below the dotted line during the post noon trading session. Stocks from the consumer durables, realty and FMCG spaces are amongst the top losers while those from the auto and pharma sectors are amongst the top gainers at the moment.
The Sensex today is trading lower by about 10 points (down 0.1%), while NSE-Nifty is trading lower by about 11 points (down 0.2%). Stocks from the midcap and small spaces are also trading weak with the BSE Mid Cap and the BSE Small Cap indices down by 0.1% and 0.4% respectively. The rupee is trading at 54.89 to the US dollar.
Stocks of steel companies are trading weak with Jindal Saw, Jindal Steel and JSW Ispat leading the list of underperformers. Tata Steel and Steel Authority of India are however trading firm. As per the management of Tata Steel, the domestic steel demand is expected to grow at a level of 7% in FY14 as compared to FY13's expected growth rate of 5.5%. The demand for steel is likely to be stronger on the back of the recent reforms announced by the government. In addition, other initiatives such as the formation of the Cabinet Committee on infrastructure - which provides a single window for mega projects - are expected to push major projects forward. Over and above all this, lower interest rates would provide an additional boost towards increasing investments going forward. Further, steel prices are expected to firm up and remain stable on the back of a modest growth expected in global markets. Factors such as the US - largest imported of steel - showing growth signs and a modest growth in the European region, will augur well for steel makers.