Markets sulk into negative territory; trade with loss of around 0.50%

Local equity markets continued to trade into negative territory in absence of any fresh positive triggers, which kept Sensex and Nifty below psychologically crucial 27,650 and 8,350 levels respectively, with losses of around half of a percent. Meanwhile, the session also was harrowing for broader indices which were trading with losses in the range of 1.10%-1.90%. Continued worries over foreign fund outflows due to retrospective taxes and lower than expected Jan-March earnings weighed on the market.

On the global front, Asian shares were trading mixed at this point of time, with Chinese stocks slipping after the country's securities regulator said it would accelerate approval of initial public offerings in an apparent effort to cool the red hot market. Late on Thursday, the China Securities Regulatory Commission (CSRC) approved a new batch of 25 IPOs, and said it would publish two lists of approved IPOs each month, up from one currently.

Closer home, most of the sectoral indices on BSE were trading into negative territory, nevertheless stocks from Realty, Consumer Durables and Capital Goods counters were the prominent losers of the session. On the flip side, stocks from FMCG counter only proved to be exception. Meanwhile, PSU oil marketing companies on BSE on rise in global crude oil prices and weak rupee. On the current front, Indian rupee hit a fresh three month high against dollar on Friday on renewed demand from American currency from banks and importers while, negative local equities also weighed on the sentiment. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1691:339; while 24 shares remained unchanged.

The BSE Sensex is currently trading at 27601.73, down by 133.29 points or 0.48% after trading in a range of 27510.90 and 27829.11. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.09%, while Small cap index was lower by 1.84%.

The gaining sectoral indices on the BSE were FMCG up by 0.17% while, Realty down by 2.93%, Consumer Durables down by 2.82%, Capital Goods down by 1.86%, Metal down by 1.23%, Bankex down by 0.95% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 1.69%, ITC up by 1.30%, Maruti Suzuki up by 1.03%, ONGC up by 0.94% and Sun Pharma Inds. up by 0.59%. On the flip side, Cipla down by 3.50%, Sesa Sterlite down by 3.09%, Hindalco down by 2.74%, HDFC down by 2.35% and Axis Bank down by 2.21% were the top losers.

Meanwhile, India, which has so far been an urea importer is all set to become an exporting nation in the next 5 years with an addition of 10 million tonnes (MT) in fertilizer production capacity at an estimated investment of Rs 60,000 crore. Fertiliser Minister Ananth Kumar underscored that this development would help realize the dream of Prime Minister Narendra Modi to make India urea exporting country.

Further, the Minister highlighted that the government was working on revival and expansion plans with regard to 9 fertilizer (urea) plants in 5 years with an investment of Rs 60,000 crore, and the work with respect to that had already been commenced.

Among the five plants, the minister asserted the government has already started the revival process of closed fertilizer plants in Talcher and Ramagundam and had approved other two plants in Gorakhpur and Barouni. With regards to Sindri plant, fertilizer minister stated that his ministry was working on its revival process.

The minister added that new plants will be set up by Rashtriya Chemicals and Fertilsiers at Thal in Maharashtra and by BVFCL in Assam, post to which India’s urea production will increase by another 10 MT to 32 MT.

The CNX Nifty is currently trading at 8347.95, down by 50.35 points or 0.60% after trading in a range of 8319.45 and 8413.30. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Lupin up by 2.41%, NMDC up by 2.29%, TCS up by 1.73%, ITC up by 1.30% and Maruti Suzuki up by 1.10%. On the flip side, Cipla down by 3.60%, Sesa Sterlite down by 3.07%, Hindalco down by 2.81%, Mahindra & Mahindra down by 2.43% and Zee Entertainment down by 2.39% were the top losers.

Asian markets were trading mixed; with Jakarta Composite increased 1.19 points or 0.02% to 5,437.40; FTSE Bursa Malaysia KLCI increased 13.35 points or 0.72% to 1,859.43; Hang Seng increased 22.79 points or 0.08% to 27,850.49 and Taiwan Weighted increased 115.79 points or 1.18% to 9,913.28

On the flip side, Nikkei 225 down by 167.61 points or 0.83% to 20,020.04; KOSPI Index down by 13.61 points or 0.63% to 2,159.80; Shanghai Composite down by 5.81 points or 0.13% to 4,408.70 and Straits Times down by 2.49 points or 0.07% to 3,500.26.