Markets slip into red, Sensex trades below 27700

The Indian markets have once again slipped into red and the major benchmarks were trading with modest losses in the early noon session. The recovery of late morning trade was sold out with drag in the IT and oil & gas stocks. In the early trade some support came with Union Minister of State for Commerce and Industry Nirmala Sitharaman’s statement that the government was closely monitoring the Greek crisis and prepared to face any situation in view of its 'comfortable' foreign exchange reserves. Traders seems to have also overlooked the reports of global agencies Standard & Poor’s and OECD who have said that India’s confidence level continues to grow  and the country is seeing “stable growth momentum. The markets have even shrugged the recovery in Chinese market, which has caused the global turmoil. Though, the broader markets were still holding in green, some sectoral indices like IT, Tech, auto and oil & gas were witnessing selling pressure that has dragged the markets into red. On the other hand some support was coming from capital goods, consumer durables, power and healthcare , which were restricting any serious fall. In scrip specific movement, Bhushan Steel hit its upper circuit limit after the company said it has received shareholders' nod to restructure around Rs 30,000 crore loans under a scheme of Reserve Bank of India.

The BSE Sensex is currently trading at 27667.70, down by 20.02 points or 0.07% after trading in a range of 27625.81 and 27798.13. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices trading in green were outperforming the benchmarks; the BSE Mid cap index was up by 0.18%, while Small cap index gained 0.42%.

The top gaining sectoral indices on the BSE were Capital Goods up by 1.55%, Consumer Durables up by 0.86%, Power up by 0.80%, INFRA up by 0.37%, Metal up by 0.24%, while IT down by 1.12%, Oil & Gas down by 0.95%, TECK down by 0.66%, Auto down by 0.27%, FMCG down by 0.20% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 2.70%, Bharti Airtel up by 2.11%, Hero MotoCorp up by 1.95%, Larsen & Toubro up by 1.68% and Hindalco up by 1.38%. On the flip side, Vedanta down by 2.02%, Tata Motors down by 1.80%, TCS down by 1.66%, Bajaj Auto down by 1.39% and Infosys down by 1.30% were the top losers.

Meanwhile, Paris-based think tank the Organisation for Economic Cooperation and Development (OECD) has said that India is seeing “stable growth momentum” even as economic activities are expected to slow down in China, the US and many other major economies.

OECD, a grouping of 34 countries in its report for May, based on Composite leading indicators (CLIs), that are designed to anticipate turning points in economic activity relative to trend, has stated that India's CLI stood at 99.5 in May. Last month the grouping had pegged India's growth to remain “strong and stable” at 7.3 percent in 2015 on the back of revival in investments. It said that the indicators continue to point to firming growth in the euro area, including France and Italy, and to stable growth momentum in Germany, Japan and India. The OECD's composite leading indicator for its 34 members fell to 100.0 in May from 100.1 in April.

The grouping has also said that CLIs point to easing growth in the US, Canada, China as well as the UK, albeit from relatively high levels. The leading indicator for the US has fallen in each month this year, and now stands at 99.5, a level below 100.0, where it started the year. Leading indicator for China fell to 97.3 in May from 97.5 in April. However, it added that Russia is showing tentative signs of a positive change in growth momentum whereas in Brazil a loss in momentum is expected.

The CNX Nifty is currently trading at 8357.40, down by 5.65 points or 0.07% after trading in a range of 8343.55 and 8400.30. There were 27 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were BHEL up by 2.64%, PNB up by 2.11%, Hero MotoCorp up by 1.97%, Bank Of Baroda up by 1.95% and Bharti Airtel up by 1.89%. On the flip side, BPCL down by 3.33%, Vedanta down by 1.85%, Tata Motors down by 1.78%, HCL Tech. down by 1.62% and Indusind Bank down by 1.42% were the top losers.

Asian markets were showing a mixed trend, FTSE Bursa Malaysia KLCI was up by 5.88 points or 0.35% to 1,701.71, KOSPI Index gained 11.6 points or 0.58% to 2,027.81, Nikkei 225 surged by 117.86 points or 0.6% to 19,855.50, Shanghai Composite zoomed by 228.31 points or 6.51% to 3,735.50 and Hang Seng was higher by1024.1 points or 4.35% to 24,540.66

On the other hand, Taiwan Weighted declined by 61.98 points or 0.69% to 8,914.13, Jakarta Composite lost 55.02 points or 1.13% to 4,816.55 and Straits Times was lower by 7.48 points or 0.23% to 3,277.51.