Benchmarks continue weak trade; Realty, PSU drag

Indian equity benchmarks continued their weak trade in the late afternoon session on account of selling in frontline counters. The sentiments were on pessimistic mood after the Indian Meteorological Department (IMD) reports highlighted that the rainfall in June-September is likely to be below normal at 93% of the long period average, which in terms of quantity, could be the lowest in four years. Traders were seen piling up positions in HealthCare, IT and TECK, while selling was witnessed in Realty, PSU and Oil & Gas sector stocks. In scrip specific development, Sun Pharmaceutical Industries was trading in green after a foreign brokerage house reiterated an overweight rating on the stock and raised the target price. MindTree was trading firm after the company stated that it expects US dollar revenue growth in FY15 to remain stronger than last year.

On the global front, the Asian markets were trading mostly in green, while the European markets too traded mostly on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 7,650 and 25,500 levels respectively. The market breadth on BSE was positive in the ratio of 1563:1401 while 90 scrips remained unchanged.

The BSE Sensex is currently trading at 25470.52, down by 109.69 points or 0.43% after trading in a range of 25711.11 and 25347.33. There were 15 stocks advancing against 15 stocks declining on the index.   

The broader indices were trading on a mixed note; with BSE Mid cap index trading lower by 0.43% and Small cap index was up 0.09%.   

On the BSE sectoral front, most of the sectoral indices were reeling under pressure, prominent losers were Realty down by 3.07%, PSU down by 1.63%, Oil & Gas down by 1.59%, Power down by 1.41% and India Infrastructure Index down by 1.38% while, HealthCare up by 1.60%, IT up by 1.60% and TECK up by 1.24% were the only gainers on the index.

The top gainers on the Sensex were Cipla up by 2.23%, Wipro up by 1.91%, Coal India up by 1.79%, Infosys up by 1.55% and TCS up by 1.42%. On the flip side, ONGC down by 3.54%, Hero MotoCorp down by 3.08%, SSLT down by 3.07%, Tata Steel down by 3.04% and BHEL down by 2.83% were the top losers.   

Meanwhile, the Reserve Bank of India (RBI) has eased customer verification norms for opening bank accounts. As per RBI’s new norms, the customers need to submit only one documentary proof of address either current or permanent while opening a bank account or while undergoing periodic updation. The move is likely to help migrant workers and employees with transferable jobs, who at present face cumbersome procedure to access banking services.

The central bank notified that in case the address mentioned as per 'proof of address' undergoes a change, fresh proof of address may be submitted to the branch within a period of six months. If the customer is not able to furnish local proof of address, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer. Further, the RBI’s notification added that no proof is required to be submitted for correspondence/local address and may be verified by bank through positive confirmation such as acknowledgment of receipt of letter, cheque books, ATM cards, telephonic conversation. In case, there is a change in address, customer may intimate the new address for correspondence to the bank within two weeks of such a change. The RBI has also asked banks to revise their KYC policy and ensure strict adherence to the revised guidelines.

The central bank decided to simplify the rigorous KYC norms after being approached by people facing problems while submitting current/permanent address proofs. Meanwhile, the RBI’s move is also expected to help the financial inclusion drive by banks.  Indian banking industry is the most dominant segment of the country’s financial sector and plays an important role in the economic development of the country. Banks help to boost economic growth by allocating savings to investments that have potential to yield higher returns.

The CNX Nifty is currently trading at 7625.10, down by 29.50 points or 0.39% after trading in a range of 7683.20 and 7579.30. There were 19 stocks advancing against 31 stocks declining on the index.   

The top gainers on Nifty were Cipla up by 2.55%, Tech Mahindra up by 2.52%, Coal India up by 1.96%, Lupin up by 1.93% and Infosys up by 1.73%. On the flip side, DLF down by 3.56%, ONGC down by 3.50%, Tata Steel down by 3.29%, SSLT down by 3.22% and Hero MotoCorp down by 3.06%, were the top losers.   

Most of the Asian equity indices were trading in green; Shanghai Composite up by 1.08%, Hang Seng up by 0.86%, Taiwan Weighted up by 0.65% and Jakarta Stock Index up by 0.72%. While, Straits Times down by 0.36% and Nikkei was down by 0.85% were the only losers among Asian pack.

The European markets were trading mostly in green; France’s CAC 40 added 0.09%, Germany’s DAX was up by 0.12% while, UK’s FTSE 100 lost 0.43%.