Markets trade in red in early deals

After a positive start, Indian equity markets are trading marginally lower with a cut of around 0.20 percent. Sentiments were dampened after a survey of RBI-sponsored Professional Forecasters on Macroeconomic Indicators showed that the economy is expected to grow at a rate of 7.8 percent in the current fiscal, a shade lower than earlier forecast of 7.9 percent. Rupee opened lower against the dollar on Thursday and was trading at 64.2, down 11 paise at the Interbank Foreign Exchange that too kept pressurizing the sentiment. Meanwhile, the session was also negative for broader indices, which succumbing to selling pressure, were trading with losses in the range of 0.28-0.39%. However, losses remained capped with the statement of Agriculture Minister Radha Mohan Singh, who showing confidence over tackling deficient monsoon, minimising production losses and its possible impact on overall economy said that the government is ready with contingency plans for 580 districts and is in touch with state governments and agriculture research bodies to tackle the situation. Traders were seen piling position in IT, TECK, Capital Goods and Oil & Gas, while selling was witnessed in Realty, FMCG, Metal, Auto and Consumer Durables.

In scrip specific development, Axis Bank was trading higher after the Reserve Bank of India (RBI) lifted the restrictions placed on the purchase of shares of the bank by foreign investors.

On the global front, the US markets closed higher helped by optimism that Greece was close to an agreement to avoid default. Traders also reacted positively to Commerce Department report showing US trade deficit narrowed by more than expected in the month of April. Asian markets are mostly trading in red. Shanghai Composite decreased 87.56 points or 1.78% to 4,822.41.

Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,150 and 26,800 levels respectively. The market breadth on BSE was negative in the ratio of 885: 892 while 74 scrips remained unchanged.

The BSE Sensex is currently trading at 26786.84, down by 50.36 points or 0.19% after trading in a range of 26742.15 and 26948.84. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.38%, while Small cap index was lower by 0.28%.

The gaining sectoral indices on the BSE were IT up by 0.48%, TECK up by 0.36%, Capital Goods up by 0.31% and Oil & Gas up by 0.18%, while Realty down by 1.45%, FMCG down by 0.98%, Metal down by 0.95%, Auto down by 0.80% and Consumer Durables down by 0.56% were the losing indices on BSE.

The top gainers on the Sensex were Wipro up by 1.19%, Infosys up by 1.06%, Axis Bank up by 0.97%, Dr. Reddys Lab up by 0.85% and GAIL India up by 0.77%. On the flip side, Tata Motors down by 2.23%, ICICI Bank down by 2.16%, Hindalco down by 1.27%, Hero MotoCorp down by 1.20% and ITC down by 1.17% were the top losers.

Meanwhile, Finance Minister Arun Jaitley while pushing for currency notes to be made in India from scratch, has made a case for greater use of plastic currency. He stated that 'The developed world has moved substantially to plastic currency and payment gateways. I think there is need for India and our determination is there to gradually take steps to move in that direction.'

To popularize the use of plastic money, the government had launched the RuPay debit card in 2012 through the National Payments Corp of India (NPCI). The card enables electronic payments at all banks and financial institutions, competing with international card providers like MasterCard, Visa and American Express.

Jaitley further stated that 'It's about time that we start at least printing our own currency with our own ink and paper. It is not merely symbolism. It also represents a thought process where there is a desire to bring back Indian manufacturing at a particular level.' Finance minister while inaugurating a paper-making line for bank notes at Hoshangabad and dispatching a consignment for printing Rs 1,000-denominated currency notes to the state-run security press at Nashik in Maharashtra, stressed that development of new facilities at Hoshangabad and Mysore would help in reducing reliance on imports for printing of currency notes.

Minister of State for Finance Jayant Sinha too advocated the cause and said there are 30 billion bank notes that are printed in India today and with the indigenous currency paper we should also aim to meet the global needs. He added that since India is moving quickly towards a cashless economy, the RBI will be soon issuing licences on Payments Bank. He said a cashless economy can facilitate volumes of transactions through a variety of institutions -- telecom operators or postal service-- and do transactions at a tremendously low cost.

The CNX Nifty is currently trading at 8126.25, down by 8.85 points or 0.11% after trading in a range of 8104.90 and 8160.05. There were 24 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Infosys up by 1.24%, Wipro up by 1.17%, Axis Bank up by 1.07%, Idea Cellular up by 0.86% and GAIL India up by 0.83%. On the flip side, NMDC down by 2.48%, Tata Motors down by 2.10%, ICICI Bank down by 2.01%, Tata Power down by 1.69% and PNB down by 1.27% were the top losers.

Asian markets were trading mostly in the red; Jakarta Composite decreased 15.36 points or 0.30% to 5,115.14, Shanghai Composite decreased 87.56 points or 1.78% to 4,822.41, Taiwan Weighted decreased 160.62 points or 1.68% to 9,395.90, Hang Seng decreased 400.12 points or 1.45% to 27,257.35 and FTSE Bursa Malaysia KLCI decresed 2.69 points or 0.15% to 1,746.48 .

On the flip side, Nikkei 225 increased 60.23 points or 0.29% to 20,533.74, KOSPI Index increased 10.11 points or 0.49% to 2,073.27.