Markets continue to trade in red amid profit-booking, weak Asian cues

Indian equity benchmarks continue to trade in red as funds and retail investors booked profits after previous two sessions of gains. Further weak trend in the Asian region and depreciation in rupee value also weighed on the sentiments. Though most of the sectoral indices were trading in green, selling witnessed in banking and healthcare stocks dragged down the major indices down. However, losses remained capped on the back of sharp buying witnessed in power, capital goods and consumer durables stock. Sentiments got some support as the Reserve Bank of India (RBI) expects that Indian economy is likely to recover to 5.5 percent growth in current fiscal year from 4.7 percent in the last financial year. Power was the top gaining index up by around 1.26% whereas bankex was top losing index on BSE, trading down by over 1%. The broader markets were outperforming the benchmarks with high margin and both mid cap and small cap indices were trading up by over 0.30%.

J B Chemicals and Pharmaceuticals has surged around 14% to Rs 194 after reporting a strong 56% yoy jump in standalone net profit at Rs 31.79 crore for Q1 FY15. The drug maker had profit of Rs 20.32 crore in the same quarter last fiscal. IL&FS Engineering and Construction Company has rallied around 5% to Rs 62.80 after the company said it has bagged Rs 105 crore contract from Lodha Group for civil construction work of proposed residential buildings in Mumbai.

On global front, Asian equity indices were trading in red with Nikkei 225 down by 1.03% and  Hang Seng down by 0.42%. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 7,700 and 25,500 levels respectively.

The BSE Sensex is currently trading at 25,851.23 down by 56.78 points or 0.22% after trading in a range of 25,901.68 and 25,821.59. There were 12 stocks advancing against 18 stocks declining on the index.The market breadth on BSE was positive, out of 2,530 stocks traded, 1,502 stocks advanced, while 930 stocks declined on the BSE. The broader indices were trading in green; the BSE Mid cap index was up by 0.34%, while Small cap index up by 0.81%.

The gaining sectoral indices on the BSE were Power up by 1.26%, Capital Goods up by 1.17%, Consumer Durables up by 0.67%, IT up by 0.38% and Realty up by 0.22%. On the flip side, Bankex down by 1.01%, Healthcare down by 0.18%, FMCG down by 0.14% and Metal down by 0.05% were the losing indices on the BSE

The top gainers on the Sensex were BHEL up by 2.59%, Infosys up by 1.31%, Tata Power up by 1.09%, L&T up by 1.09% and HUL up by 1.04%. On the flip side, ICICI Bank down by 1.62%, Tata Motors down by 1.61%, Bharti Airtel down by 1.48%, ITC down by 1.07% and Sun Pharma down by 1.00% were the top losers on the BSE. 

Meanwhile, The Reserve Bank of India (RBI) expects that Indian economy is likely to recover to 5.5 percent growth in current fiscal year from 4.7 percent in the last financial year. The RBI Governor Raghuram Rajan stated that the country is in a much better position as compared to previous year and overall business sentiments and economic activity have improved.

On improvement in India’s macro-economic indicators, the Governor has stressed that the current account deficit (CAD) has been brought under control and the foreign exchange reserves are significantly higher over last year. Further, the revival of investments, pick-up in external demand, unblocking of stalled projects and stabilisation in global crude prices could help achieve the growth estimates. By adding further he said that the Government is committed to control the fiscal deficit. The government during budget 2014-15 has set fiscal deficit target at 4.1 percent of GDP this year and decided to lower it to 3 percent of GDP by 2016-17. Further, the set-up of stable government and political stability in the country has also improved the economic growth prospects.

India's economic growth stayed below 5 percent for the second year in a row at 4.7 percent during FY14. However, over the past few months, macro-economic indicators have been witnessing some improvement. Industrial production growth soared to a 19-month high of 4.7 percent in May mainly driven by improved performance of the manufacturing sector. India’s export growth remained in double digit for the second month in a row at 10.22 percent in June. The strong growth in overseas shipments will provide impetus to country’s manufacturing and services sector.

The CNX Nifty is currently trading at 7,733.30 down by 13.25 points or 0.17% after trading in a range of 7,739.60 and 7,715.80. There were 19 stocks advancing against 31 declining on the index.

The top gainers of the Nifty were BHEL up by 2.59%, Asian Paints up by 2.20%, Power Grid up by 1.40%, L&T up by 1.15% and Tata Power up by 1.14%. On the flip side, ICICI Bank down by 1.58%, Tata Motors down by 1.54%, Bharti Airtel down by 1.53%, Grasim down by 1.28% and Ultra-tech Cement down by 1.26% were the major losers on the index.

Asian equity indices were trading in red; Nikkei 225 down by 1.03% to 15,161.79,  Hang Seng down by 0.42% to 24,543.25, Shanghai Composite down by 0.04% to 2,219.37, Jakarta Stock Price Index down by 1.06% to 5,054.70 and Straits Times Index down by 0.28% to 3,318.24. While, Taiwan Weighted up by 0.03% to 9,143.97