Markets continue to trade in red in afternoon session

Indian equity benchmarks continue to trade in red in afternoon session amid selling witnessed in some frontline blue chip stocks such as L&T, SSLT and Tata Motors among others. Though most of the spectral indices were trading in green, sharp selling witnessed in capital goods and metal stocks dragged the major indices lower. Further, funds and retail investors were offloading positions ahead of tomorrow's monthly expiry in the derivatives segment amid lower-than-expected corporate earnings by some companies. Selling was broad based and both mid cap and small cap indices were trading down by over 0.15%. However, market’s losses remained capped on the back of buying witnessed in infrastructure and consumer durables stocks. Sentiments got some support as NCAER has projected Indian economic growth rate at 5.2-5.7 percent for current fiscal. Further, India Meteorological Department's (IMD) has stated that the monsoon is likely to remain strong till August 15. Consumer durables was the top gaining index up by around 1.37% whereas capital goods was the top losing index trading down by around 4.47%.

Larsen and Toubro (L&T) has tanked nearly 8% to Rs 1,512 despite reporting consolidated net profit of Rs 967 crore for Q1 FY15. Tata Motors was trading lower by around 2% at Rs 443, extending its past two-days' fall, on reports that Jaguar Land Rover (JLR) has reduced its prices on three of its high end models in response to an pricing and anti-monopoly investigation in China. On the other hand, V-Guard Industries has rallied around 6% to Rs 771 after reporting a healthy 26% year-on-year increase in net profit at Rs 22.25 crore for Q1 FY15 on back of higher revenues and better product mix.

On global front, most of Asian equity indices were trading in green with Nikkei 225 up by 0.18% to 15,645 and Hang Seng up by 0.89% as the US and European Union strengthened sanctions against Russia. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 7,750 and 26,000 levels respectively. The market breadth on BSE was negative, out of 2,420 stocks traded, 1,013 stocks advanced, while 1,300 stocks declined on the BSE.

The BSE Sensex is currently trading at 25,955.51 down by 35.72 points or 0.14% after trading in a range of 26,022.62 and 25,925.36. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.16%, while Small cap index down by 0.33%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.37%, Infrastructure up by 1.26%, Bankex up by 0.44%, Teck up by 0.42% and FMCG up by 0.41%. On the flip side, Capital Goods down by 4.47%, Metal down by 1.14%, Auto down by 0.27%, Realty down by 0.13% and IT down by 0.09% were the losing indices on the BSE

The top gainers on the Sensex were Bharti Airtel up by 5.07%, Gail India up by 1.99%, ONGC up by 1.43%, ITC up by 1.35% and ICICI Bank up by 1.24%. On the flip side, L&T down by 6.62%, SSLT down by 3.62%, Tata Motors down by 1.91%, Tata Power down by 1.53% and Tata Steel down by 1.26% were the top losers on the BSE. 

Meanwhile, the new textile policy aims to achieve $300 billion exports by 2024-25 and creation of additional 35 million jobs by attracting investments. The expert panel headed by Ajay Shankar has submitted its draft to textiles minister Santosh Gangwar. According to the textile vision document, the country would need roughly $120 billion in investment by 2014-15 to realize these targets.

For the financial year 14, India's textile and garment exports rose to $39 billion, however it remained below the set export target at $43 billion despite rupee depreciation. The panel identified basic concerns in textiles sector and national priorities in the form of a vision & strategy and the action plan for attaining the targets for exports, investment and employment by the year 2024-25.

It had become imperative for textile ministry to upgrade the National Textile Policy, 2000 as domestic textile industry has witnessed large scale modernisation and technological up-gradation in the last decade and faces new challenges. The policy document will be put up on the website of the textile ministry for inviting online comments/suggestions until 18th August after which feedback will be considered and a final action plan would be prepared and placed before the Cabinet for approval.

Textile industry contributes around 4 percent to the gross domestic product (GDP), around 10 percent of the country’s export earnings and nearly 14 percent to industrial production besides providing direct employment to over 45 million people. The present market size of the industry stands at around $90 billion.

The CNX Nifty is currently trading at 7,740.80 down by 7.90 points or 0.10% after trading in a range of 7,756.85 and 7,729.25. There were 28 stocks advancing against 22 declining on the index.

The top gainers of the Nifty were Bharti Airtel up by 5.31%, Gail up by 2.16%, Kotak Bank up by 1.83%, IDFC up by 1.56% and ONGC up by 1.46%. On the flip side, L&T down by 6.49%, SSLT down by 3.76%, Tata Motors down by 2.18%, NMDC down by 2.05% and Tata Power down by 1.68% were the major losers on the index.

Most of Asian equity indices were trading in green; Nikkei 225  up by 0.18% to 15,645,  Hang Seng up by 0.89% to 24,860.86, Taiwan Weighted up by 0.59% to 9,447.18, Shanghai Composite up by 0.15% to 2,186.33. While, and Jakarta Index down by 0.19% to 5,088.80 and Straits Times Index down by 0.08% to 3,353.21