Markets trade weak on final session of F&O expiry

Local equity markets continued trading weak in afternoon deals as investors remained on sidelines on final session of F&O expiry in the backdrop of negative global set-up. Markets right from the start were trading lackluster on prevailing risk-off sentiment after reports suggested Federal Reserve taking an upbeat view on the U.S. economy, signalled to raise interest rates this year, despite an uncertain global outlook, in a development which also sent Asian pacific shares lower. However, markets recovered from day’s low on account of bargain buying activities, with both Sensex and Nifty trading above crucial 29,450 and 8,850 levels respectively with losses of around three tenths of a percent. Meanwhile, broader indices also succumbing to selling pressure were trading with losses in the range of 0.10%-0.15%.

Much of the bourses were led by stocks from Metal, PSU and Infrastructure counters. On the flip side, much of the buying was witnessed by stocks from Realty, Oil & Gas and Consumer Durable counters were the prominent gainers of the session. In stock-specific action, Telecom stocks were witnessing selling pressure after the Cabinet endorsed the telecom commission's recommendations on setting the reserve price for 3G spectrum at a little over Rs 3,700 crores. The reserve price is nearly 36% dearer than what the TRAI had recommended. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1091:939; while 24 shares remained unchanged.

The BSE Sensex is currently trading at 29471.69, down by 87.49 points or 0.30% after trading in a range of 29378.30 and 29539.41. There were 10 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index was down by 0.12%, while Small cap index down by 0.15%.

The gaining sectoral indices on the BSE were Realty up by 2.19%, Oil & Gas up by 1.39%, Consumer Durables up by 0.37%, FMCG up by 0.04% while, Metal down by 1.36%, PSU down by 0.92%, INFRA down by 0.70%, TECK down by 0.62%, Power down by 0.49% were the losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 3.16%, Reliance Industries up by 2.64%, HDFC Bank up by 2.10%, Hindustan Unilever up by 0.76% and Hero MotoCorp up by 0.72%. On the flip side, Coal India down by 3.06%, HDFC down by 2.31%, Sesa Sterlite down by 1.92%, SBI down by 1.81% and Bharti Airtel down by 1.81% were the top losers.

Meanwhile, in a proposal for financial support to Jute Corporation of India, the government has approved mandatory packaging of sugar and food-grains in jute material to minimum extent of up to 90% of production, with certain exemptions. The government has approved this proposal to offset the losses suffered by Jute Corporation of India on account of Minimum Support Price (MSP) operations.

Meanwhile, for sugar, minimum packaging requirement has been fixed at 20% of production for jute year 2014-15. Both the decisions are aimed at protecting the interests of jute growers through procurement of raw jute under the MSP fixed by the government and also to stabilize the raw jute market for the benefit of 40 lakh farm families and the jute economy as a whole.

Further, the financial assistance to Jute Corporation of India (JCI) will be provided in the form of subsidy. The quantum of subsidy will include the difference between the purchase and sale price of MSP Raw Jute. The quantum of subsidy will also include fixed overhead costs incurred by JCI in maintaining its infrastructure for Minimum Support Price (MSP) operation.

The CNX Nifty is currently trading at 8887.45, down by 26.85 points or 0.30% after trading in a range of 8861.25 and 8907.85. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 3.22% and Lupin up by 2.71% and Reliance Industries up by 2.54% and HDFC Bank up by 2.07% and BPCL up by 1.70%. On the flip side, Coal India down by 3.07%, PNB down by 2.76%, HDFC down by 2.35%, Sesa Sterlite down by 2.19% and HCL Tech. down by 2.15% were the top losers.

Asian markets were trading mostly lower; Hang Seng trading lower by 282.67 points or 1.14% to 24,579.14; Nikkei 225 trading lower by 189.51 points or 1.06% to 17,606.22;  Taiwan Weighted trading lower by 84.02 points or 0.88% to 9,426.90;  Shanghai Composite trading lower by 43.6 points or 1.32% to 3,262.14;  FTSE Bursa Malaysia KLCI trading lower by 14.51 points or 0.81% to 1,781.37; KOSPI Index trading lower by 10.56 points or 0.54% to 1,951.02;  Jakarta Composite trading lower by 9.82 points or 0.19% to 5,259.04. On the flip side, Straits Times trading higher by 6.54 points or 0.19% to 3,425.69 was the lone gainers