Markets continue to trade somber with losses of around 0.50%

Local equity markets were trading somber with losses of around half of a percent on continued selling pressure in absence of positive triggers, which dragged both Sensex and Nifty below psychologically crucial 27,350 and 8,300 levels respectively. Cautiousness at the start of F&O expiry week and not so encouraging earnings from corporate also weighed on the sentiment. Meanwhile, session also remained daunting for broader indices, which were trading with cut in the range of 1.50-2.50%.

On the global front, Asian markets were trading mostly higher, boosted by Wall Street's strong performance on Friday and a bounce in iron ore prices. The price of iron ore also gained 6% on Friday to $57 (£37) a tonne, its highest price since mid-March. Chinese shares continued their bull run, with state-owned firms leading the gains after state media reported that the government would cut the number of conglomerates it controls through mergers and acquisitions. Meanwhile, European stocks were seen opening on a mixed note Monday as investors await a raft of earnings and look for progress in talks over Greece's debt after no deal was reached at the April 24 gathering in Riga, Latvia.

Closer home, most of the sectoral indices on BSE were reeling under pressure, nevertheless worst hit were the stocks from Realty, Consumer Durable and Oil & Gas counters. On the flip side, stocks from Infrastructure counters were the only exception among the session. On the earnings front, Bharti Infratel near record high level after company’s fourth quarter (January-March) net profit climbed 10 percent to Rs 557.5 crore compared to Rs 506.9 crore in December quarter, supported by other income despite higher tax cost. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1705:345; while 9 shares remained unchanged.

The BSE Sensex is currently trading at 27306.02, down by 131.92 points or 0.48% after trading in a range of 27210.10 and 27567.28. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.56%, while Small cap index down by 2.38%.

The gaining sectoral indices on the BSE were INFRA up by 0.04% while, Realty down by 2.68%, Consumer Durables down by 1.62%, Oil & Gas down by 1.27%, PSU down by 1.27% and Bankex down by 0.90% were the losing indices on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 2.61%, NTPC up by 1.10%, Tata Motors up by 0.84%, Wipro up by 0.76% and Reliance Industries up by 0.48%. On the flip side, Dr. Reddys Lab down by 3.64%, SBI down by 2.50%, BHEL down by 2.21%, HDFC down by 1.98% and Hero MotoCorp down by 1.72% were the top losers.

Meanwhile, amid stiff resistance by several opposition parties, the long-pending Bill on Goods and Services Tax (GST), which was moved in the Lok Sabha on Friday will be taken up for consideration  and passage on Monday. The Constitution (122nd Amendment) Bill, 2014, was moved on Friday by Finance Minister Arun Jaitley, who asserted this a “win-win” measure for both the Centre and the states in an effort to allay the apprehensions of some state governments who worried about revenue loss if this piece of legislation was passed.

However, the fate of this bill remains to be hanging given that this Constitution amendment bill requires two-thirds support in both the Houses and with Congress looking keen to create hurdles given that BJP blocked the same bill when it was in power, Modi led government will need deft political management, especially in Opposition-dominated Rajya Sabha, to ensure the bill's passage.

Notably, Congress Party along with those of the Left, TMC and NCP staged a walk out after their plea for referring the Constitution Amendment Bill to the Standing Committee was not accepted. However, government friendly parties AIADMK and BJD also opposed its consideration but did not walk out.

The Opposition members blamed that the government was “bull-dozing” and was quietly wanting to pass the bill, however the parties demanded more time to study the “new” legislation.

The crucial GST, which is expected to add 1-2% to the GDP by creating a national market for goods and removing distortions caused by multiple indirect taxes levied by the Centre, states and local bodies, was earlier supposed to be rolled out from April 1, 2010 but has been delayed due to resistance on the part of many states that feared a loss of revenue.

The CNX Nifty is currently trading at 8254.25, down by 51.00 points or 0.61% after trading in a range of 8221.05 and 8334.45. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Sesa Sterlite up by 2.56%, Idea Cellular up by 1.83%, NTPC up by 1.23%, Zee Entertainment up by 1.14% and Ultratech Cement up by 0.85%. On the flip side, Cairn India down by 3.64%, Dr. Reddys Lab down by 3.39%, Asian Paints down by 3.38%, BPCL down by 2.97% and SBI down by 2.49% were the top losers.

Asian markets were trading mixed; with FTSE Bursa Malaysia KLCI trading higher by 0.83 points or 0.04% to 1,863.41; Straits Times trading higher by 4.78 points or 0.14% to 3,517.78; Taiwan Weighted trading higher by 59.84 points or 0.6% to 9,973.12; Shanghai Composite trading higher by 128.78 points or 2.93% to 4,522.47 and Hang Seng trading higher by 469.08 points or 1.67% to 28,530.06.

On the flip side, Jakarta Composite down by 155.1 points or 2.85% to 5,280.26; Nikkei 225 down by 36.72 points or 0.18% to 19,983.32 and KOSPI Index down by 2.26 points or 0.1% to 2,157.54.