Markets continue to trade in red dragged down by FMCG and Metal counters

Markets continued to trade in red with benchmarks finding their difficult to hold their psychological levels of 27700 (Sensex) and 8400 (Nifty). The early cautiousness was persisting with trade remaining under pressure, ahead of Reserve Bank of India's (RBI) policy review due later in the day. Although, there are expectations of a 25 basis point cut in repo rate, RBI governor's take on the outlook of inflation and growth estimates for the year will be keenly watched. Meanwhile, losses in ITC on reports stating ban of sale of loose cigarettes coupled with weakness in select auto shares with Hero Motocorp losing the most on weak May sale numbers have dragged the indices lower. The broader indices too dipped as BSE 100 recorded a loss of 0.42 per cent and mid-cap and small-cap stocks lost over 0.30 percent each. Sentiments weakened further on report that output in the eight key infrastructure industries which declined in April for a second month in a row, by 0.4% along with weakness in the Asian peers as investors remain wary after the upbeat economic data from the US raised the possibility of an interest rate hike by the US Federal Reserve. However, losses remained capped as some encouragement came with Finance Minister Arun Jaitley statement that India has the potential to improve the economic growth to double-digit.

On global front, Asian stocks drifted lower as markets weighed a possible rebound in US growth against doubts about Greece's ability to make debt payments and stay in the euro currency bloc. Further, the US markets made a modestly higher closing in last session, though the trade remained lackluster throughout the day on mixed economic data. Back home, Indian rupee is marginally up by 4 paise at 63.66 against the US dollar in early trade on increased selling of the American currency by exporters and banks.

Back on street, barring Consumer Durables, all other BSE sectoral indices were trading in the red. Among them, FMCG index fall the most by 0.94 percent, followed by Metal down by 0.78 percent, power down by 0.64 percent and Infrastructure down by 0.62 percent, while Consumer Durables index was up by 0.01 percent. In scrip specific development, shares of Tata Motors have gained after the company’s total commercial and passenger vehicles sales (including exports) rose 5% to 39,496 units in May 2015 over May 2014. On the other hand, shares of Hero MotoCorp declines on reporting 5.41% fall in its total sales at 569876 units in May 2015 as compared to 602481 units sold in the same month last year.

The market breadth on BSE was negative, out of 2136 stocks traded, 797 stocks advanced, while 1255 stocks declined on the BSE.

The BSE Sensex is currently trading at 27691.93, down by 157.06 points or 0.56% after trading in a range of 27629.23 and 27902.53. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.31%, while Small cap index down by 0.31%.

The only gaining sectoral index on the BSE were Consumer Durables up by 0.01% ,while FMCG down by 0.94%, Metal down by 0.78%, Power down by 0.64%, Infrastructure down by 0.62% and Realty down by 0.58% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.24%, TCS up by 0.42%, Tata Motors up by 0.35% and HDFC Bank up by 0.13%. On the flip side, Hero MotoCorp down by 2.55%, ITC down by 2.11%, Tata Power down by 1.45%, Cipla down by 1.39% and Hindalco down by 1.17% were the top losers.

Meanwhile, the firming up oil prices has led to another rate hike in aviation turbine fuel (ATF) prices by the oil companies. Jet fuel prices have been hiked by a steep 7.5 per cent, in Delhi it was raised by Rs 3,744.08 per kilolitre (kl) or 7.54 per cent, to Rs 53,353.92. Rates of non-subsidised cooking gas (LPG), too has been hiked by Rs 10.50 per cylinder to Rs 626.50 per 14.2-kg cylinder in Delhi from Rs 616 previously.

Earlier, the oil companies had marginally hiked the ATF prices by Rs 272 per kl or 0.5 per cent to Rs 49,609.84. Following global trends, the price of non-subsidised or market-priced domestic cooking gas was hiked following a Rs 5 per 14.2-kg hike in rates effected from May 1. ATF price had been cut by Rs 23,648.73 or 33 per cent in seven reductions since August 2014, while in the seven monthly reductions, non-domestic LPG rates had been slashed by Rs 317.50 per cylinder.

Households are entitled to 12 cylinders of 14.2-kg each or 34 bottles of 5-kg each. 14.2-kg cylinder will now cost Rs 626.50, while the 5-kg pack will cost Rs 318.50 in Delhi. Following similar trends, rates of market-priced 19 kg LPG cylinder has been hiked to Rs 1,151 per bottle from Rs 1,134.

Government owned oil marketing companies IOC, BPCL and HPCL revise jet fuel and non-subsidised LPG prices on the first of every month based on average imported cost and rupee-dollar exchange rate.

The CNX Nifty is currently trading at 8383.20, down by 50.20 points or 0.60% after trading in a range of 8364.80 and 8445.35. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Lupin up by 1.22%, Bharti Airtel up by 1.13%, Zee Entertainment up by 0.72%, Idea Cellular up by 0.72% and Bosch up by 0.59%. On the flip side, Hero MotoCorp down by 2.58%, ITC down by 2.14%, Asian Paints down by 1.77%, Cipla down by 1.49% and Tata Power down by 1.45% were the top losers.

Asian markets were trading mostly in the red; Hang Seng decreased 0.74%, Nikkei 225 decreased 0.4%, Straits Times decreased 1.31%, KOSPI Index decreased 1.08%, Jakarta Composite decreased 0.05%, FTSE Bursa Malaysia KLCI decreased 0.01% and Shanghai Composite decreased 0.04%. On the flip side, Taiwan Weighted increased 0.02%.