Benchmarks trade lower in early deals on feeble global cues

Pressurized by feeble global cues, Indian equity benchmarks have made a negative start and are trading lower in early deals on Monday. The US markets once again turned lower in last session on getting some disappointing economic data and earnings announcements. The Asian markets were trading mostly in the red at this point of time after weekend Chinese data raised concerns about growth in the world’s second-largest economy. The Chinese official Purchasing Managers’ Index (PMI) fell to 49.8 in January, a low last seen in September 2012 and below the 50-point level that separates growth from contraction on a monthly basis.

Back home, investors also remained worried over a huge shortfall in tax deducted at source (TDS) collections, the Central Board of Direct Taxes (CBDT) has asked the income tax department (I-T) to initiate special measures to achieve the collection target for this financial year. However, losses remained capped as some support came in from report that overseas investors pumped in a staggering Rs 33,688 crore in capital markets last month, making it the highest investment in six months owing to easing inflation and rate cut by Reserve Bank of India (RBI).

On the sectoral front, software, capital goods and consumer durables witnessed the maximum gain in trade, while banking, fast moving consumer goods and public sector undertaking remained the top losers on the BSE sectoral space. The broader indices, however, were outperforming benchmarks, while the market breadth on the BSE was positive; there were 1236 shares on the gaining side against 709 shares on the losing side while 63 shares remain unchanged.

The BSE Sensex is currently trading at 29106.38, down by 76.57 points or 0.26% after trading in a range of 29024.92 and 29158.57. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.50%, while Small cap index up by 0.66%.

The gaining sectoral indices on the BSE were IT up by 1.14%, Capital Goods up by 1.11%, Consumer Durables up by 0.99%, TECK up by 0.82% and Healthcare up by 0.56% while, Bankex down by 0.82%, FMCG down by 0.43%, PSU down by 0.32% and Oil & Gas down by 0.02% were the few losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Inds. up by 2.07%, Hindalco up by 1.97%, Wipro up by 1.60%, Larsen & Toubro up by 1.58% and TCS up by 1.17%. On the flip side, Coal India down by 2.67%, Dr. Reddys Lab down by 2.20%, Bajaj Auto down by 1.82%, ICICI Bank down by 1.70% and HDFC Bank down by 1.53% were the top losers.

Meanwhile, Union Urban Development Secretary Shankar Aggarwal unveiled that the framework for Prime Minister Narendra Modi's ambitious project of developing 100 smart cities will be finalized by next month-end. The minister further said that the government in next two days would be completing the process for identification of 100 smart cities.

The government’s objective is to develop cities with technology-based governance, which will enable efficient public services and have 24x7 water and power supply, 100% sewerage, drainage and solid waste management facilities, besides top class infrastructure.

Further, the government expects a large contribution from the private sector in developing the cities as it plans to build this project on public private partnership basis. As per the envisaged plan, every city would on an average need investments to the tune of Rs 1,000 crore over next 10 years and the private sector is expected to contribute largely, nearly 80-85%, towards this development, according to the government.

Besides, Union Urban development ministry has asked the states to ensure that the cities picked under the smart cities initiative would have to meet the broad contours listed by it, including economically viable cities, meeting the requirements of 'e-governance', 'Swachh Bharat' and 'Make in India’.

Lastly, the minister unveiled that the centre would take a final call on criteria like cities accounting for 54% of incremental GDP till 2025, hill and coastal areas, tourist and religious centres and mid-sized cities

The CNX Nifty is currently trading at 8792.75, down by 16.15 points or 0.18% after trading in a range of 8772.15 and 8808.10. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were HCL Tech up by 4.53%, Tech Mahindra up by 3.02%, Hindalco up by 2.18%, Sun Pharma up by 1.83% and Wipro up by 1.67%. On the flip side, Asian Paints down by 4.63%, Coal India down by 2.65%, Bank Of Baroda down by 2.51%, Dr. Reddys Lab down by 2.08% and Bajaj Auto down by 2.04% were the top losers.

Asian markets trade mostly in the red; Nikkei 225 decreased 103.23 points or 0.58% to 17,571.16, Hang Seng slipped 68.55 points or 0.28% to 24,438.50, Shanghai Composite declined 37.28 points or 1.16% to 3,173.08, Jakarta Composite shed 22.11 points or 0.42% to 5,267.30, KOSPI Index dipped 1.78 points or 0.09% to 1,947.48 and FTSE Bursa Malaysia KLCI was down by 0.92 points or 0.05% to 1,781.26.

On the flip side, Taiwan Weighted increased 5.9 points or 0.06% to 9,367.81 and Straits Times was down by 18.68 points or 0.55% to 3,409.88.