Markets give up early gains; Nifty trades below 6700

Indian markets have given up their early gains and were trading marginally in red, though still there is no sign of major selling but some profit booking in the bluechips is dragging the markets lower. The weak trends of the other regional markets were also weighing down the sentiments. Traders were unfazed by the release of the main opposition party BJP’s manifesto focusing on improving the country's economy and infrastructure, ending policy paralysis and curbing corruption. There was some somberness with HSBC survey report saying that private sector activity in emerging market economies fell for the fourth consecutive month in March. As per the report, while China posted a marginal decline for the second month running, India slipped back into contraction. On the sectoral front most of the indices were trading in red with high beta realty, consumer durables and banking suffering the most.

The market breadth on BSE was positive, out of 1523 stocks traded, 864 stocks advanced, while 576 stocks declined on the BSE.

The BSE Sensex is currently trading at 22,311.02 down by 48.48 points or 0.22% after trading in a range of 22,481.62 and 22,311.02. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in mixed; the BSE Mid cap index was down by 0.18% and Small cap index was up by 0.28%. 

The gaining sectoral indices on the BSE were Oil & Gas up by 0.39%, Auto up by 0.38%, Capital Goods up by 0.26% and PSU up by 0.02%. While, Consumer Durables down by 1.25%, Healthcare down by 0.76%, Realty down by 0.73%, Bankex down by 0.51% and Power down by 0.36% were the losing indices on BSE.   

The top gainers on the Sensex were SSLT up by 1.29%, Sun Pharma up by 1.24%, Mahindra & Mahindra up by 1.09%, L&T up by 0.84% and Gail India up by 0.81%. On the flip side, BHEL down by 2.42%, ICICI Bank down by 1.77%, Cipla down by 1.61%, Dr Reddys Lab down by 1.39% and HDFC down by 0.80%.

Meanwhile, in a sign of worry, foreign direct investment (FDI) in the services sector, which accounts for over 60 per cent to India's GDP, declined by about 61 per cent year-on-year to $1.8 billion during April-January. The services sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, had received FDI worth $4.66 billion during April-January 2013. Overall foreign inflows into the country dipped to $18.79 billion during the first 10 months of 2013-14 from $19.10 billion in April-January 2013.

FDI in services sector off lately has been on declining trajectory. In 2012-13, foreign investment in services fell to $4.83 billion from $5.21 billion in 2011-12. FDI inflows have also declined in sectors including construction development and hotel and tourism.

Dwindling FDI is a sign of dwindling confidence, however the same is expected to pick once momentum after the formation of the new government, which is expected in May. FDI is considered to be crucial for India, which needs about $1 trillion in the five years ending March 2017 to refurbish infrastructure such as ports, airports and highways and boost growth.

The CNX Nifty is currently trading at 6,691.50 down by 2.85 points or 0.04% after trading in a range of 6,725.15 and 6,688.70. There were only 26 stocks advancing against 24 declining on the index.

The top gainers of the Nifty were UltraTech Cement up by 2.46%, Ambuja Cements up by 1.92%, Grasim up by 1.50%, NMDC up by 1.42% and ACC up by 1.40%. On the flip side, Jindal Steel down by 2.72%, BHEL down by 2.56%, IDFC down by 1.80%, DLF down by 1.76% and ICICI Bank down by 1.75% were the major losers on the index.

Most of the Asian equity indices were trading in red; Hang Seng dropped 0.70%, Nikkei 225 tumbled 1.87%, Straits Times decreased 0.58%, KOSPI Composite plunged 0.27% and Taiwan Weighted was down by 0.36%.

On the flip side, Jakarta Composite was up by 1.28%.

Chinese markets remained shut for the trade today on account of Ching Ming Festival holiday.