Benchmarks continue to trade lower in a tight range

Indian markets continue to move in tight range in afternoon deals with frontline gauges trading with marginal cues, as investor sentiment remained dampened by higher-than-expected consumer price inflation data for June. CPI inflation rate for June rose to 5.4 per cent, higher than the estimated 5.1 per cent. However, losses remained capped after the wholesale price index-(WPI) based inflation fell to -2.4 percent lower than previous month’s number of -2.35 percent and 5.66 percent during the corresponding month of the previous year. Some support also came with report that Iran and six major powers have clinched a historic nuclear deal.

On the global front, European counters have made a weak opening with CAC, DAX and FTSE all trading lower in early deals. Asian markets were trading mostly in green at this point of time with traders shifting their attention to the timeline for higher US interest rates, after the Greek deal. Back home, on the sectoral front, oil and gas, infrastructure and consumer durables witnessed the maximum gain in trade, while auto, banking and software remained the top losers on the BSE sectoral space. The broader indices, however, were trading with traction, while the market breadth on the BSE was positive; there were 1,445 shares on the gaining side against 1,049 shares on the losing side while 111 shares remain unchanged.

The BSE Sensex is currently trading at 27919.46, down by 41.73 points or 0.15% after trading in a range of 27853.96 and 27995.04. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.39%, while Small cap index up by 0.51%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.76%, INFRA up by 0.64%, Consumer Durables up by 0.62%, PSU up by 0.59% and Healthcare up by 0.50%, while Auto down by 0.53%, Bankex down by 0.36%, IT down by 0.10% and TECK down by 0.07% were the few losing indices on BSE.

The top gainers on the Sensex were Coal India up by 1.76%, Hero MotoCorp up by 1.66%, Lupin up by 1.45%, BHEL up by 1.26% and Cipla up by 0.73%. On the flip side, Tata Motors down by 2.05%, Hindalco down by 1.36%, SBI down by 1.08%, Vedanta down by 1.02% and HDFC down by 0.78% were the top losers.

Meanwhile, in the meeting chaired by Finance Secretary Rajiv Mehrishi, FIBP cleared 23 FDI proposals out of 47 proposals including those of microfinance group Bandhan Financial services and Kerala based Catholic Syrian Bank. Bandhan Financial Services which earlier received approval from RBI to set up an universal bank , proposed to offer 5% stakes each to International Finance Corporation (IFC) and Singapore government’s sovereign wealth fund GIC in its banking venture.

Among other proposals FIBP also cleared FDI proposals of GSK Pharma, Natco Pharma, Novartis Healthcare, Mylan Laboratories, and DEN Networks. While the proposals of Reliance Globalcomn and Sistema Shyam Teleservices were adjourned by Inter – Ministerial panel.

FDI is permitted in most of the sectors through automatic route, but the segments which are considered sensitive for economy need to be first cleared from FIPB. The FIPB can recommend foreign investment proposals of up to Rs 3,000 crore to the finance minister for approval and the proposals worth above that is referred to CCEA.

The CNX Nifty is currently trading at 8448.60, down by 11.05 points or 0.13% after trading in a range of 8424.10 and 8470.60. There were 23 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Coal India up by 1.92%, Hero MotoCorp up by 1.65%, Lupin up by 1.57%, BPCL up by 1.39% and BHEL up by 1.39%. On the flip side, Tata Motors down by 1.95%, Hindalco down by 1.36%, SBI down by 1.28%, Kotak Mahindra Bank down by 1.19% and Vedanta down by 1.15% were the top losers.

Asian markets were trading mostly in green; Straits Times rose 1.55 points or 0.05% to 3,312.77, FTSE Bursa Malaysia KLCI increased 7.65 points or 0.45% to 1,723.76, Taiwan Weighted gained 7.84 points or 0.09% to 9,041.76, Nikkei 225 surged 295.56 points or 1.47% to 20,385.33 and Jakarta Composite was up by 26.15 points or 0.53% to 4,920.07.

On the flip side, Hang Seng decreased 182.38 points or 0.72% to 25,041.63, Shanghai Composite slipped 5.74 points or 0.14% to 3,964.65 and KOSPI Index was down by 2.29 points or 0.11% to 2,059.23.

European Markets were trading in the red; Germany’s DAX lost 0.38%, UK’s FTSE dipped 0.13% and France’s CAC was down by 0.10%.