Markets trade slightly in red in afternoon session

Indian equity benchmarks were trading near neutral line with negative bias in afternoon session as participants indulged in reducing their positions ahead of monthly expiry in the derivatives segment. Investors also maintained cautious approach ahead of quarterly earnings of some blue chip companies such as Maruti Suzuki and ICICI Bank. However, the gains in realty, metal and capital goods stocks capped the markets losses. Sentiments got some support as National Statistical Commission Chairman Pronob Sen’s stated that the country’s growth can enhance to 6.5 percent in the current fiscal. Major sectoral indices on BSE were trading mixed and Realty was the top gaining index up by around 0.84% whereas IT was the top losing index trading down by around 0.50%. Meanwhile, the broader markets were outperforming the benchmarks with high margin and both mid cap and small cap indices were trading up by over 0.60%. Stock specific movement, Cadila Healthcare has tanked 10% to Rs 1,050 after a top brokerage firm downgraded the company on account of high valuations. On the other hand, IRB Infrastructure has surged around 7% to Rs 255 after reporting 12% yoy growth in consolidated net profit at Rs 150 crore for Q1FY15, driven by strong operational performance.

On global front, Asian equity indices were trading mixed with Straits Times Index up by 0.85% and Nikkei 225 down by 0.07%. At the end of two-day monetary policy meeting yesterday, the Federal Reserve had said that it is cutting its monthly purchases of government-linked bonds to $25 billion, down from the $35-billion level set at its bank’s last meeting in June. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 7,750 and 26,000 levels respectively. The market breadth on BSE was positive, out of 2,403 stocks traded, 1,357 stocks advanced, while 952 stocks declined on the BSE.

The BSE Sensex is currently trading at 26,074.10 down by 13.32 points or 0.05% after trading in a range of 26,118.88 and 26,034.55. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.63%, while Small cap index up by 0.65%.

The gaining sectoral indices on the BSE were Realty up by 0.84%, Metal up by 0.78%, Capital Goods up by 0.66%, Oil and Gas up by 0.62% and Consumer Durables up by 0.29%. On the flip side, IT down by 0.56%, Teck down by 0.37%, FMCG down by 0.24%, Auto down by 0.11% and Bankex down by 0.11% were the losing indices on the BSE

The top gainers on the Sensex were Cipla up by 2.95%, Tata Steel up by 2.46%, Maruti Suzuki up by 1.34%, BHEL up by 1.10% and Gail India up by 1.02%. On the flip side, Wipro down by 1.35%, M&M down by 1.05%, Tata Power down by 0.95%, Sun Pharma down by 0.77% and Dr Reddy’s Lab down by 0.66% were the top losers on the BSE. 

Meanwhile, as India has taken a tough stand at WTO, the top global trade bodies and experts have attributed this policy as a quite contrary to the promise made by the new government that it is open for business.  Last week, India has made it clear to the World Trade Organization (WTO) that it would not agree to the Trade Facilitation Agreement (TFA) unless there is a tangible and credible evidence of movement on arriving at a permanent solution on safeguards to run food security programmes of developing nations and a package for least developed countries (LDCs).

India's stance not only puts up a roadblock on global trade, but will effectively halt any efforts to envision a larger ambition for the US-India economic relationship, said Alyssa Ayres a senior fellow for India, Pakistan, and South Asia at the Council on Foreign Relations. Disagreement with TFA shows that India is not against the west countries but against itself and the world, backing away from the terms of a deal it participated in designing as recently as December. The International Chamber of Commerce (ICC) has stated that failure to meet the July 31 deadline for TFA would mean missing an opportunity to inject much-needed growth into the global economy.

The developed countries including the US, Australia and European countries have heavily skewed in favour of trade facilitation instead of accepting the Bali package on food security programmes of developing nations. Earlier, at Bali Ministerial last December, India had agreed to the TFA, which binds members to improving border infrastructure for smoother movement of goods. The TFA is aimed at simplifying customs procedure, reducing transactions cost and increasing transparency and is being pushed by the developed countries as they seek to strengthen their sagging economies through an unrestrained global trade by way of a uniform and easy procedures at customs.

The CNX Nifty is currently trading at 7,782.25 down by 9.15 points or 0.12% after trading in a range of 7,791.25 and 7,768.70. There were 22 stocks advancing against 28 declining on the index.

The top gainers of the Nifty were Cipla up by 2.86%, Tata Steel up by 2.31%, Maruti up by 1.29%, BHEL up by 1.19% and Jindal Steel up by 1.15%. On the flip side, HCL Tech down by 2.53%, Wipro down by 1.49%, NMDC down by 1.31%, M&M down by 1.24% and Tata Power down by 1.10% were the major losers on the index.

Most of Asian equity indices were trading mixed; Shanghai Composite up by 0.17% to 2,184.85 and Straits Times Index up by 0.85% to 3,382.21. While, Nikkei 225 down by 0.07% to 15,635.03, Hang Seng down by 0.22% to 24,677.06 and Taiwan Weighted down by 1.39% to 9,315.85