Benchmarks trade slightly in the red ahead of WPI inflation data

Indian equity benchmarks are trading slightly in the red in early deals on Monday ahead of wholesale price index data for the month of February 2015, scheduled to be released later in the day. However, losses remained capped as foreign investors getting some encouragement with Finance Minister Arun Jaitley’s statement that the government was rationalising the country's tax system to make it fair, amid concerns of fresh claims of tax on past transactions by Indian authorities.

On the global front, the US markets ended in red in last session, there were some weak economic data that weighed on the sentiments. The Asian markets were trading mostly in the green terrain at this point of time, though the mood was cautious as investors awaited this week’s Federal Reserve meeting for clues on the timeline for higher US interest rates.

Back home, on the sectoral front, software, technology and banking witnessed the maximum gain in trade, while metal, power and oil and gas remained the top losers on the BSE sectoral space. The broader indices too were reeling under pressure, while the market breadth on the BSE was negative; there were 777 shares on the gaining side against 1,200 shares on the losing side while 78 shares remain unchanged.

The BSE Sensex is currently trading at 28471.67, down by 31.63 points or 0.11% after trading in a range of 28420.27 and 28581.82. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.36%, while Small cap index down by 0.45%.

The gaining sectoral indices on the BSE were IT up by 0.62%, TECK up by 0.30%, Bankex up by 0.21%, FMCG up by 0.12% and Consumer Durables up by 0.11% while, Metal down by 1.08%, Power down by 0.87%, Oil & Gas down by 0.72%, Infrastructure down by 0.35% and Capital Goods down by 0.26% were the losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 1.16%, Wipro up by 1.07%, HDFC Bank up by 0.92%, Tata Power up by 0.88% and TCS up by 0.84%. On the flip side, Sesa Sterlite down by 2.89%, NTPC down by 2.73%, HDFC down by 2.09%, Cipla down by 2.00% and Hindalco down by 1.71% were the top losers.

Meanwhile, in a major boost to the government’s reform agenda, the Rajya Sabha on Thursday approved the insurance bill, thereby raising the ceiling for foreign investment in the sector from 26% to 49%. The Insurance Laws (Amendment) Bill, 2015 will replace the ordinance promulgated by the government last year.

The passage of the bill in the Rajya Sabha, with help from Congress, comes as a major relief to the Modi government which had been slamed for the high-handedness with which it had taken the ordinance route to carry out major policy decisions. Further, the passage of the bill, which provides power to Insurance Regulatory Development Authority (IRDA), also brings cheer for insurance agents. As per the Bill, the manner and amount of remuneration, or reward, to be paid or received by way of commission or otherwise, to an insurance agent or an intermediary, will be decided by the regulator.

Notably, Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) was able to get its thing done in the upper House, where it is in a minority, after the Congress decided to support the bill, signalling a rare consensus between the two national political parties on a key economic reform.

However, the passage of this bill in Rajya Sabha also raises hopes of legislative passage for some other crucial bills like the Coal Mines (Special Provisions) Bill and Mines and Minerals (Development and Regulation) Amendment Bill, 2015, which have been referred to a select committee by the house.

The CNX Nifty is currently trading at 8629.15, down by 18.60 points or 0.22% after trading in a range of 8619.60 and 8663.55. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were DLF up by 2.29%, Asian Paints up by 2.04%, BPCL up by 1.03%, Hindustan Unilever up by 1.02% and Zee Entertainment up by 0.92%. On the flip side, Cairn India down by 3.59%, Jindal Steel & Power down by 3.41%, Sesa Sterlite down by 3.27%, NMDC down by 2.71% and NTPC down by 2.57% were the top losers.

Asian markets were trading mostly in the green; FTSE Bursa Malaysia KLCI rose 2.56 points or 0.14% to 1,784.31, KOSPI Index gained 4.16 points or 0.21% to 1,989.95, Nikkei 225 advanced 11.24 points or 0.06% to 19,265.49, Straits Times surged 18.78 points or 0.56% to 3,381.55, Jakarta Composite jumped 19.06 points or 0.35% to 5,445.53, Shanghai Composite added 61.4 points or 1.82% to 3,434.31 and Hang Seng was up by 117.54 points or 0.49% to 23,940.75. On the flip side, Taiwan Weighted was down by 24.77 points or 0.26% to 9,554.58.