Benchmarks extend losses; Nifty hovers near 8,000 mark

Indian equity markets extend their losses in the late afternoon session on account of selling in frontline blue chip counters. Investors have turned cautious ahead of Index of Industrial Production (IIP) data for April and Consumer Price Index (CPI) data for May scheduled to be released tomorrow. Traders were seen selling in Bankex, Auto and Power stocks. In scrip specific development, AstraZeneca Pharma India was locked at upper circuit limit after the biopharmaceutical company launched FORXIGA (dapaglifozin), a breakthrough treatment for Type 2 diabetes mellitus. National Aluminium (NALCO) was trading firm after foreign brokerage firm started covering the stock with outperform rating. On the global front, the Asian markets were trading mostly in green while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,050 and 26,500 levels respectively. The market breadth on BSE was negative in the ratio of 751:1714 while 111 scrips remained unchanged.

The BSE Sensex is currently trading at 26491.30, down by 349.20 points or 1.30% after trading in a range of 26460.09 and 27000.14. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.10%, while Small cap index down by 0.92%.

The losing sectoral indices on the BSE were Bankex down by 1.82%, Auto down by 1.70%, Power down by 1.60%, Consumer Durables down by 1.22%, Capital Goods down by 1.18%.

The top gainers on the Sensex were Vedanta up by 2.27%, Hindustan Unilever up by 0.88% and Sun Pharma up by 0.43%.

On the flip side, Tata Motors down by 3.66%, BHEL down by 3.08%, Reliance Industries down by 3.06%, SBI down by 2.21% and NTPC down by 2.07% were the top losers.

Meanwhile, the central government has approved a Rs 6,000-crore interest-free loan to the sugar industry to enable it to clear cane arrears to farmers that stand at Rs 21,000 crore. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, also agreed to provide a one-year moratorium on loan repayment and decided to bear the cost of interest subvention, to the extent of Rs. 600 crore, for the period.

This is the second time that the Centre has given an interest-free loan to millers to clear arrears, after its December 2013 decision, when it gave an interest-free loan of Rs 6,600 crore. The CCEA has however decided this time that the loans be given to units that cleared at least 50 per cent of their arrears before June 30. Union Minister for Road Transport and Highways Nitin Gardkari has stated that Sugar mills will prepare a list of farmers whose dues they have to clear and banks will transfer the amount to the Jan Dhan accounts of cane growers.

Nitin Gadkari further stated that government had already taken several measures to support the sugar sector, including an increase in sugar import duty to 40 per cent, raising export subsidy on raw sugar and an increase in ethanol prices to promote its blending with petrol.

India is likely to start the 2015/16 marketing year starting October 1 with carry-forward stocks of 10.3 million tonnes, up 37 percent from the current year and the country is likely to produce 28.5 million tonnes of sugar in the current marketing year ending on September 30, nearly 4.5 million tonnes higher than local requirement.

The CNX Nifty is currently trading at 8005.80, down by 118.65 points or 1.46% after trading in a range of 7998.35 and 8163.05. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 2.19%, Hindustan Unilever up by 0.69%, BPCL up by 0.69%, Sun Pharma up by 0.47% and Tech Mahindra up by 0.46%.

On the flip side, Asian Paints down by 3.94%, Tata Motors down by 3.61%, Idea Cellular down by 3.48%, BHEL down by 3.12% and Reliance Industries down by 3.07% were the top losers.

The Asian markets were trading mostly in green; Taiwan Weighted increased 3.99 points or 0.04% to 9,302.49, KOSPI Index increased 5.29 points or 0.26% to 2,056.61, Shanghai Composite increased 15.56 points or 0.3% to 5,121.59, Straits Times increased 27.93 points or 0.84% to 3,353.70, Hang Seng increased 220.21 points or 0.83% to 26,907.85 and Nikkei 225 increased 336.61 points or 1.68% to 20,382.97.

On the other hand, Jakarta Composite decreased 9.82 points or 0.2% to 4,923.73 and FTSE Bursa Malaysia KLCI decreased 0.07 points or 0% to 1,735.56.

The European markets were trading in green; UK’s FTSE 100 increased 10.66 points or 0.16% to 6,840.93, France’s CAC increased 24.59 points or 0.5% to 4,959.50 and Germany’s DAX increased 78.07 points or 0.69% to 11,343.46.