Markets continue to trade lower in a tight range

Indian markets continue to move in tight range, there is no respite for the major indices, which after an initial spurt have lost their way and were down by around half a percent. There are no cues for the markets to give any direction in either way and the traders were opting cautious bets ahead of the key macro data slated to be announced during the week. There was concern in the markets with industry body, Assocham’s  latest assessment that in the face of slow global demand for merchandise, India’s exports in the current financial year are likely to stay flat or may even move backward of $ 310 billion, the figure achieved in 2014-15. The rupee weakness amid strengthening of the American currency against others overseas too had weighed on the sentiments. Not only the blue chips but the broader markets too were reeling in red and the profit booking has spread across the board. All the sectoral indices too continue to trade lower, led by consumer durables, healthcare, power, auto and oil & gas. 

The BSE Sensex is currently trading at 26624.08, down by 144.41 points or 0.54% after trading in a range of 26588.70 and 26827.06. There were 8 stocks advancing against 21 stocks declining on the index.

The broader indices too were trading in red; the BSE Mid cap index was down by 1.03%, while Small cap index lost 0.80%.

The top losing sectoral indices on the BSE were INFRA down by 1.05%, Consumer Durables down by 0.97%, Auto down by 0.96%, Power down by 0.83%, Oil & Gas down by 0.76%.

The top gainers on the Sensex were Coal India up by 1.71%, Tata Power up by 1.13%, Axis Bank up by 0.98%, Bajaj Auto up by 0.83% and Larsen & Toubro up by 0.64%. On the flip side, Tata Motors down by 2.51%, Vedanta down by 2.22%, Tata Steel down by 2.01%, Cipla down by 1.79% and Hindustan Unilever down by 1.78% were the top losers.

Meanwhile, government moving a step further in its strategy to make it easier to do business in the country, has relaxed norms pertaining to related party transactions, accepting deposits and appointing auditors in private companies. The corporate affairs ministry has issued four separate notifications relaxing the norms for the four categories of companies under the Companies Act, 2013. The notifications have introduced as many as 16 changes or clarifications related to private companies and around 30 for government companies.

The ministry has said that Section 188 of the Act, which requires a company to get consent from its Board of directors before entering into a related-party transaction even for activities such as sale, purchase or supply of any goods or materials and leasing of property and which deals with related party transactions, would not be applicable to private companies.

The corporate affairs ministry, regarding to rules for accepting deposits, has said that it would not be applicable on a private entity which accepts from its members’ monies not exceeding 100 per cent of aggregate of the paid-up share capital and free reserves. While, with respect to government companies, the ministry has made close to 30 changes related to various requirements. These pertain to Board evaluation, appointment of directors and conduct of annual general meetings (AGMs).

The government has also eased various norms for government-owned companies, nidhi and not-for-profit companies covered under Section 8 of the Companies Act which have been set up with the aim of cultivating thrift and savings habit amongst its members.

The CNX Nifty is currently trading at 8062.35, down by 52.35 points or 0.65% after trading in a range of 8053.80 and 8131.00. There were 10 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Coal India up by 1.84%, Zee Entertainment up by 1.23%, Bajaj Auto up by 1.02%, Tata Power up by 0.99% and Axis Bank up by 0.88%. On the flip side, PNB down by 3.69%, Cairn India down by 3.37%, Bank Of Baroda down by 3.24%, Vedanta down by 2.63% and Tata Motors down by 2.39% were the top losers.

The Asian markets were trading mostly in red; Jakarta Composite was down by 1.09%. KOSPI Index lost 0.14%, FTSE Bursa Malaysia KLCI down by 0.39%, Straits Times down by 0.12% and Nikkei 225 marginally down by 0.02%. On the other hand, shanghai Composite up by 1.74%, Hang Seng up by 0.57% and Taiwan Weighted was up by 0.30%