Benchmarks continue weak trade; FMCG, Consumer Durables drag

Indian equity markets continued to trade in red in the late afternoon session on account of selling in frontline blue chip counters. Traders were seen piling positions in IT, Realty and TECK stocks while selling was witnessed in FMCG, Consumer Durables and Auto sector stocks. In scrip specific development, SpiceJet was trading firm on buzz that the firm’s promoter Ajay Singh along with US-based JP Morgan Chase will submit a revival plan to the government on the basis of a proposed investment of $200 million. Ruchi Soya Industries was trading in green after the government raised import duty on crude edible oil and refined oils by 5%. Power Grid Corporation of India was trading in green after the ministry invoked a provision in the relevant Central Electricity Regulatory Commission (CERC) rules to give eight new transmission projects with an estimated cost of Rs 36,000 crore to the company.

On the global front, the Asian markets were trading in green. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,200 and 27,200 levels respectively. The market breadth on BSE was negative in the ratio of 1224:1364 while 132 scrips remained unchanged.

The BSE Sensex is currently trading at 27154.81, down by 53.80 points or 0.20% after trading in a range of 27091.38 and 27370.63. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index was up by 0.16%, while Small cap index down by 0.01%.

The gaining sectoral indices on the BSE were IT up by 0.60%, Realty up by 0.52%, TECK up by 0.45%, Metal up by 0.45% and INFRA up by 0.37% while, FMCG down by 0.93%, Consumer Durables down by 0.64%, Auto down by 0.51%, Oil & Gas down by 0.39% and Bankex down by 0.33% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 1.03%, Sesa Sterlite up by 0.90%, Infosys up by 0.73%, HDFC up by 0.62% and TCS up by 0.57%. On the flip side, ITC down by 1.32%, Maruti Suzuki down by 1.27%, ICICI Bank down by 1.03%, Tata Motors down by 0.94% and BHEL down by 0.86% were the top losers.

Meanwhile, with an aim to boost the domestic economic growth, the government has approved key insurance, coal and pharma sector reforms which were stuck in Parliament logjam.  A Union Cabinet committee, headed by Prime Minister Narendra Modi, approved promulgation of the ordinance on Insurance Bill, re-promulgation of the Coal ordinance and allowing 100 per cent FDI in medical devices sector under the automatic route.

The government is of the view that hiking of the foreign investment cap in the insurance sector to 49 per cent will result in capital inflow of $6-8 billion. While, the Coal Mines (Special Provisions) Bill, 2014 will facilitate e-auction of coal blocks for private companies for captive use and allot mines directly to state and central PSUs. The government has decided to auction or allot 101 cancelled coal blocks in the first round of auction. Out of which 65 mines will be allocated to private players while 36 other blocks will be directly allotted to state-owned companies.  Both bills were approved by the Lok Sabha during the session and also got approval from the Standing Committee, as well as the Select Committee of the Rajya Sabha. However, the bills were not permitted to be taken up for discussions in the Rajya Sabha because of disturbances in the upper House.

To encourage manufacturing of equipments, including diagnostic kits and other devices, the government also allowed 100 percent FDI under automatic route in medical devices sector. The move will encourage FDI inflows in the sector and help domestic companies to enhance their global competitiveness.  As per estimates, India imports about 70 percent of its requirement of medical devices. Present industry size stands at around $7 billion in the country.

The CNX Nifty is currently trading at 8171.40, down by 2.70 points or 0.03% after trading in a range of 8147.95 and 8234.55. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Jindal Steel & Power up by 3.15%, DLF up by 2.58%, HCL Tech up by 1.61%, Hindalco up by 1.23% and Tech Mahindra up by 1.09%.

On the flip side, ITC down by 1.20%, Zee Entertainment down by 1.16%, ICICI Bank down by 1.08%, Grasim Industries down by 1.06% and Maruti Suzuki down by 0.91% were the top losers.

The Asian markets were trading in green; KOSPI Index increased 1.55 points or 0.08% to 1,948.16, Straits Times increased 2.79 points or 0.08% to 3,348.70, Nikkei 225 increased 10.21 points or 0.06% to 17,818.96, FTSE Bursa Malaysia KLCI increased 13.28 points or 0.76% to 1,763.02, Taiwan Weighted increased 55.37 points or 0.6% to 9,214.07 and Shanghai Composite increased 85.07 points or 2.77% to 3,157.60.

Hong Kong Stock Exchange was closed on account of ‘The first weekday after Christmas Day’ holiday while Indonesia Stock Exchange was closed on account of ‘National Leave’ holiday.