Benchmarks trade lower in early deals

Indian equity Markets started the session on a flat note with negative bias and now are trading with a cut of around half percent amid weak global cues. The session was proving equally weak for broader indices. Investors’ sentiment remained on pessimistic note after the industry body Assocham said that India's exports are likely to remain flat at $310.5 billion-level or may even fall this financial year due to slow global demand for merchandise. Further, the caution also prevailed ahead of Reserve Bank of India’s (RBI) announcement of Current Account Deficit (CAD) data which is scheduled to be released today. Investors are also awaiting slew of macro-economic data like data for industrial production for April and consumer price index (CPI) for May scheduled to be released on Friday. Meanwhile, Railway Minister Suresh Prabhu stated that his department has signed initial agreements with 20 states. Under the agreement, there will be a company jointly owned by the centre and the states. It will develop infrastructure and look into issues which the states think are important. Traders were seen piling position in Metal and Capital Goods, while selling was witnessed in INFRA, TECK, Auto, Bankex and IT.  

In scrip specific development, Sun TV was trading sharply lower on reports that the Ministry of Home Affairs (MHA) has struck down the proposal by the Information and Broadcasting (I&B) Ministry for giving security clearance to 33 television channels of Sun TV Network.

On the global front, Asian market was trading mixed. Chinese market was trading higher on stimulus hopes after nation’s exports fell 2.8 percent from a year earlier in yuan value.

Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,100 and 26,700 levels respectively. The market breadth on BSE was nigative in the ratio of 713: 1004 while 67 scrips remained unchanged.

The BSE Sensex is currently trading at 26661.74, down by 106.75 points or 0.40% after trading in a range of 26588.70 and 26827.06. 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 0.52%, while Small cap index down by 0.45%.

The gaining sectoral indices on the BSE were Metal up by 0.47% and Capital Goods up by 0.21% while, INFRA down by 0.75%, TECK down by 0.73%, Auto down by 0.62%, Bankex down by 0.62% and IT down by 0.56% were the losing indices on BSE.

The top gainers on the Sensex were Coal India up by 1.04%, Larsen & Toubro up by 0.84%, Axis Bank up by 0.81%, Bajaj Auto up by 0.70% and ITC up by 0.57%. On the flip side, Tata Motors down by 1.54%, HDFC down by 1.46%, Hindustan Unilever down by 1.44%, Cipla down by 1.31% and SBI down by 1.28% were the top losers.

Meanwhile, in an order to curb free exports limit of large exporters or status holders, the government has restricted free outbound shipments of goods by large exporters for export promotion activities to Rs 10 lakh. Directorate General of Foreign Trade in a public notice has stated that status holders shall be entitled to export freely exportable items on free of cost basis for export promotion subject to an annual limit of Rs 10 lakh or 2 percent of average annual export realisation during preceding three licensing years, whichever is lower.

Earlier, the limit was Rs 10 lakh or 10 percent of average annual export realisation during preceding three licensing years, whichever is higher. Seprately it said that as a measure of transitional arrangement, exporters can file certain category of applications manually, till EDI (electronic data inter change) online module is ready or upto September 30 whichever is earlier.

The FIEO said that for R&D equipment for pharmaceuticals and bio-technology sector, duty free import of goods upto 25 percent of FOB (free on board) value of exports during preceding licensing year, shall be allowed.

The government of India has recently announced the new Foreign Trade Policy 2015-20, which states that under Merchandise Exports from India Scheme (MEIS), export items with high domestic content and value addition have generally been provided higher level of rewards. For reward schemes and duty exemption schemes, hard copies of applications and specified documents which were required to be submitted earlier have now been dispensed with.

The CNX Nifty is currently trading at 8075.90, down by 38.80 points or 0.48% after trading in a range of 8053.80 and 8131.00. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Coal India up by 1.22%, Larsen & Toubro up by 0.77%, Axis Bank up by 0.75%, Bajaj Auto up by 0.75% and ITC up by 0.64%. On the flip side, Cairn India down by 2.16%, Indusind Bank down by 1.85%, HDFC down by 1.56%, Hindustan Unilever down by 1.51% and Bank Of Baroda down by 1.40% were the top losers

Asian markets were trading mixed; Shanghai Composite increased 45.37 points or 0.90% to 5,068.47, Taiwan Weighted increased 8.69 points or 0.05% to 9,344.90, Hang Seng increased 96.21 points or 0.35% to 27,356.37, Nikkei 225 increased 10.59 points or 0.05% to 20,466.59. on the flip side KOSPI Index decreased 1.42 points or 0.07% to 2,066.67, FTSE Bursa Malaysia KLCI decreased 7.08 points or 0.41% to 1,738.25.Straits Times decreased 1.40 or  0.03% to 3,333.06 and Jakarta Composite decreased 43.17 points or 0.84% to 5,057.89.