Benchmarks continue to trade in red in late morning session

Indian bourses continued to trade in red in the late morning session on absence of positive triggers which could take the markets higher and profit booking in frontline line blue-chip stocks ahead of WPI inflation data, which slated to be announced later in the day. However, the broader markets were seen outperforming the benchmark indices as the BSE mid-cap index advanced 0.37 percent and the small-cap index gained 0.51 percent. Sentiment got some support with the International Monetary Fund (IMF) statement that India will overtake China as the fastest growing emerging economy in 2015-16 by clocking a growth rate of 7.5 percent on the back of recent policy initiatives, pick-up in investments and lower oil prices. Also, a senior American trade official has reportedly said that a series of reforms unleashed by India in recent months are “important steps” around open, predictable and rules based reforms. Some support also came in from reports that foreign portfolio investors (FPIs) bought shares worth a net Rs 417.01 crore on April 13, 2015.

On global front, Asian markets stumbled as relief China had matched its own growth target was soured by poor readings on consumer demand and industrial activity, underlining the need for more policy action by Beijing. Growth in China's colossal economy did slow to a six-year low of 7% in the first quarter, but that was better than many feared after a woeful trade performance in March. Back home, Indian rupee recovered by 13 paise at 62.38 against the US dollar in early trade after the Greenback weakened overseas due to disappointing American retail sales data.

Back on street, stocks from Banking, Consumer Durables and FMCG counters were supporting the markets’ uptrend, while those from information technology (IT), Auto and infrastructure counters were adding to the underlying cautious undertone. In scrip specific development, Shares of KNR Constructions have surged after the company bagged orders worth Rs 729 crore from a Tamil Nadu government undertaking for upgradation of roads. Further, DCB Bank rose after the bank posted a 61% year-on-year (y-o-y) rise in net profit at Rs 63 crore for the fourth quarter ended March 31, on the back of higher net interest income (NII).

The market breadth on BSE was positive, out of 2372 stocks traded, 1323 stocks advanced, while 949 stocks declined on the BSE.

The BSE Sensex is currently trading at 28950.64, down by 93.80 points or 0.32% after trading in a range of 28949.34 and 29094.61. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.37%, while Small cap index up by 0.51%.

The gaining sectoral indices on the BSE were Bankex up by 0.88%, Consumer Durables up by 0.56%, FMCG up by 0.48%, Capital Goods up by 0.33% and Oil & Gas up by 0.31% while, TECK down by 1.08%, Auto down by 1.01%, IT down by 0.91%, infrastructure down by 0.54% and Metal down by 0.21% were the losing indices on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 1.99%, ICICI Bank up by 1.42%, SBI up by 1.31%, ITC up by 0.99% and Tata Power up by 0.88%. On the flip side, Bharti Airtel down by 3.17%, Mahindra & Mahindra down by 2.68%, Tata Motors down by 2.48%, Sun Pharma down by 1.54% and Coal India down by 1.40% were the top losers.

Meanwhile, in its twice-a-year South Asia Economic Focus report, World Bank has said that driven by a strong expansion in India, coupled with favorable oil prices, economic growth in South Asia is expected to accelerate. The region is among the greatest global beneficiaries from cheap oil, as all countries in it are net oil importers.

The report has highlighted that given India's weight in regional Gross Domestic Product (GDP), the projections reflect to a large extent India’s expected growth acceleration, driven by business-oriented reforms and improved investor sentiment. The bank further said that in India, GDP growth is expected to accelerate to 7.5% in fiscal year 2015-16. It could reach 8% in FY 2017-18, on the back of significant acceleration of investment growth to 12% during FY2016-FY2018.

Talking about India, the report noted that India has already taken encouraging steps to decouple international oil prices from fiscal deficits and to introduce carbon taxation to address the negative externalities from the use of fossil fuels. The challenge will be to stay the course in the event of oil price hikes - something that may well happen in the medium term.

The report has projected steady increase in regional growth from 7% in 2015 to 7.6% by 2017 on grounds of strong consumption and increasing investment. It has added that the decline in oil prices has been reflected in the domestic prices of oil products to different extents across the region. Together with favorable food prices, cheaper oil has contributed to a rapid deceleration of inflation. In March 2013, the Consumer Price Index (CPI) of the region had increased by 7.3% year-on-year compared to 1.4% in March 2015, the report said.

The CNX Nifty is currently trading at 8808.65, down by 25.35 points or 0.29% after trading in a range of 8804.45 and 8844.80. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Sesa Sterlite up by 2.32%, Yes Bank up by 1.60%, ICICI Bank up by 1.42%, ACC up by 1.25% and Cairn India up by 1.19%. On the flip side, Bharti Airtel down by 3.24%, Mahindra & Mahindra down by 2.56%, Tata Motors down by 2.39%, Idea Cellular down by 2.10% and Sun Pharma down by 1.81% were the top losers.

Asian markets were trading mostly in the red; Taiwan Weighted decreased 0.8%, Shanghai Composite dropped 1.11%, Hang Seng slipped 0.05%, Jakarta Composite shed 0.24% and Nikkei 225 was down by 0.11%. On the flip side, KOSPI Index increased 0.28%, FTSE Bursa Malaysia KLCI rose 0.18% and Straits Times was up by 0.48%.