Markets trade flat in afternoon session

Indian bourses were trading near neutral line with a positive bias in the afternoon session, though buying momentum in the equities still persisted, but marginal downfall from day's high levels was seen on account of selling witnessed in defensive sector stocks such as FMCG, IT and tech. Weak global cues due to growing concerns over the crisis in Iraq coupled with depreciation in rupee value too have dented investors’ sentiments. However, major indices were managing to remain in green supported by buying in the realty, capital goods and consumer durable stocks. Sentiments got some support as the factory output growth rebounded to a 13-month high of 3.4 per cent in April and retail inflation eased to 8.23 per cent in May on account of falling prices of essential food items. Most of the sectoral indices were trading in green and realty was the top gaining index on BSE, up by 1.08%, followed by consumer durable and capital goods indices both trading up by over 0.50%. IT index was trading down by around 0.36% due to negative economic data in US, which is the biggest outsourcing market for the Indian IT firms.

Saregama India has surged nearly 10% to Rs 126, its 52-week high on BSE, after reporting over two-fold jump in net profit at Rs 6.75 crore for Q4FY14 on back of strong operational performance. City Union Bank surged by 9% to record high level at Rs 78.95 after a huge block deal was executed in the counter on BSE.

On global front, Asian equity indices were trading mixed with Taiwan Weighted down by 0.09% and Jakarta Stock Index down by 0.20%. 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, out of 2,746 stocks traded, 1,479 stocks advanced, while 1,189 stocks declined on the BSE.

The BSE Sensex is currently trading at 25,593.37 up by 17.16 points or 0.07% after trading in a range of 25,688.31 and 25,570.04. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.45%, while Small cap index up by 0.56%.

The gaining sectoral indices on the BSE were Realty up by 1.08%, Capital Goods up by 1.08%, Consumer Durables up by 0.58%, Auto up by 0.55% and Bankex up by 0.42%. On the flip side, FMCG down by 0.48%, IT down by 0.36%, Teck down by 0.37% and Oil and Gas down by 0.28% were the losing indices on BSE.     The top gainers on the Sensex were BHEL up by 2.95%, M&M up by 1.86%, Coal India up by 1.53%, Bajaj Auto up by 1.49% and HDFC Bank up by 1.30%. On the flip side, Hindalco Inds down by 2.01%, TCS down by 1.35%, Axis Bank down by 1.08%, Bharti Airtel down by 0.95% and NTPC down by 0.87% were the top losers on the BSE.

Meanwhile, India’s apparel exports grew by 24.96% to $1.49 billion in the month of May mainly on the back of strong demands in non-traditional markets like Latin America, West Asia, Southern Africa and East Asia. Further, regulatory and labour problems in major competitors like Bangladesh, China and Myanmar also helped Indian apparel exports. However, India’s overseas shipments to traditional markets like the US and Europe remained sluggish.

During the first two months of the current fiscal, the value of apparel exports stood at $2.81 billion, which is 20 percent higher than $2.35 billion exports registered in the corresponding period of last fiscal.

India's apparel export is expected to cross $ 17 billion mark in FY15 from $15 billion recorded in FY14. India exports around 65% apparels to the US and European markets. Despite sluggish shipments to traditional markets, Indian apparel export has enhanced mainly on the back of recent steps taken by government and industry player to focus more evolving new markets and establish brand India in non-traditional markets such as Brazil, Israel, Russia, and Japan.

The CNX Nifty is currently trading at 7,652.35 up by 2.45 points or 0.03% after trading in a range of 7,678.50 and 7,643.40. There were 21 stocks advancing against 29 declining on the index.

The top gainers of the Nifty were BHEL up by 3.06%, Ambuja Cement up by 1.91%, Cairn up by 1.89%, M&M up by 1.75% and IDFC up by 1.64%. On the flip side, BPCL down by 3.42%, Hindalco down by 2.30%, Bank of Baroda down by 1.90%, TCS down by 1.78% and Mc-Dowell down by 1.72% were the major losers on the index.

Most of the Asian equity indices were trading mixed; Shanghai Composite up by 0.82% to 2,068.61, Hang Seng up by 0.68% to 23,333.16, Nikkei up by 0.85% to 15,101.29 and Straits Times up by 0.05% to 3,294.66. While, Taiwan Weighted down by 0.09% to 9,196.39 and Jakarta Stock Index down by 0.20% to 4,924.56