Benchmarks trade in red in late afternoon session

Indian equity markets started trading in red in the late afternoon session, after hovering in green, on account of selling in frontline blue chip counters. Investors took cautious approach ahead of the Federal Reserve’s policy two-day meeting scheduled to start later in the session. Traders were seen piling positions in Bankex, Auto and Power stocks while selling was witnessed in FMCG, IT and TECK sector stocks. In scrip specific development, Wockhardt was trading in red after the company stated that it would recall some drugs manufactured at its two plants in India before the US Food and Drug Administration (FDA) banned those sites due to quality concerns. Geometric slumped after reporting 80% quarter on quarter drop in its consolidated net profit at Rs 3.29 crore for the fourth quarter ended March 31, 2015 (Q4) due to lower operational revenues. The market may remain volatile this week as traders roll over positions in the Futures & Options (F&O) segment from the near month i.e. April 2015 series to next month i.e. May 2015 series. The near month April 2015 derivatives contracts will expire on Thursday i.e. April 30, 2015.

On the global front, the Asian markets were trading mostly in red while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,250 and 27,200 levels respectively. The market breadth on BSE was positive in the ratio of 1327:1202 while 96 scrips remained unchanged.

The BSE Sensex is currently trading at 27121.15, down by 55.84 points or 0.21% after trading in a range of 27073.25 and 27365.72. 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 0.61%, while Small cap index up by 0.55%.

The gaining sectoral indices on the BSE were Bankex up by 1.56%, Auto up by 1.14%, Power up by 0.55%, Realty up by 0.51% and Oil & Gas up by 0.19% while, FMCG down by 1.58%, IT down by 0.93%, TECK down by 0.72%, Capital Goods down by 0.67% and Consumer Durables down by 0.64% were the losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 5.34%, Maruti Suzuki up by 3.24%, Axis Bank up by 2.16%, NTPC up by 1.59% and Hero MotoCorp up by 1.55%.

On the flip side, ITC down by 2.70%, GAIL India down by 1.92%, Larsen & Toubro down by 1.67%, Hindustan Unilever down by 1.64% and Infosys down by 1.56% were the top losers.

Meanwhile, in pursuance of the enactment of Insurance Regulatory & Development Authority (IRDA) Act, 2013, the government has raised the limit of Foreign Direct Investment (FDI) in pension sector to 49% in line with the FDI cap in the insurance sector. A press note to this effect has been issued by the Department of Industrial Policy and Promotion (DIPP) on Monday.

The FDI cap in the sector has been hiked to 49% and that includes foreign investment in the forms of FPI, FII, QFI, FVCI, NRI and DR. Further, the formal release also states that while no government approval is required till 26 per cent, FIPB nod is required for investment beyond 26% and up to the cap of 49%. Besides, this all investment in the range of below 26% or above will have to abide by pension sector regulator -- PFRDA.

It was back in December last year that the government allowed 49% in insurance sector through an ordinance in the parliament, which was later converted into Act. However, the increase in the foreign investment limit in the pension sector comes with certain rider.

The CNX Nifty is currently trading at 8213.10, down by 0.70 points or 0.01% after trading in a range of 8185.15 and 8264.25. There were 25 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 5.64%, BPCL up by 4.47%, Maruti Suzuki up by 3.30%, Axis Bank up by 2.29% and Tech Mahindra up by 2.17%.

On the flip side, ITC down by 2.86%, Zee Entertainment down by 2.17%, GAIL India down by 2.05%, Larsen & Toubro down by 1.69% and Reliance Industries down by 1.67% were the top losers.

The Asian markets were trading mostly in red; Jakarta Composite decreased 57.55 points or 1.1% to 5,187.90, Shanghai Composite decreased 51.18 points or 1.13% to 4,476.22, Straits Times decreased 20.6 points or 0.59% to 3,495.25, Taiwan Weighted decreased 16.29 points or 0.16% to 9,956.83, KOSPI Index decreased 9.87 points or 0.46% to 2,147.67 and FTSE Bursa Malaysia KLCI decreased 8.5 points or 0.46% to 1,851.08. On the other hand, Hang Seng increased 9.16 points or 0.03% to 28,442.75 and Nikkei 225 increased 75.63 points or 0.38% to 20,058.95.

The European markets were trading in red; Germany’s DAX decreased 67.21 points or 0.56% to 11,971.95, France’s CAC decreased 46.33 points or 0.88% to 5,222.58 and UK’s FTSE 100 decreased 61.89 points or 0.87% to 7,042.09.