Markets continue to trade lower in a tight range

Indian markets continued to move in tight range, there is no respite for the major indices, which lost their way since beginning of the trade and were down by over 0.20%, with frontline gauges trading below their crucial 8,600 (Nifty) and 28,300 (Sensex) levels. The sentiments remained down-beat with report that India's southwest monsoon has been 26% below normal so far in July. According to India Meteorological Department (IMD) data, the shortfall in rains during the week ended July 8 was 50%, while the deficit was 12% for the July 16-22 week. Besides, disappointing quarterly earnings from some bluechip companies and a weak trend at other Asian markets too dampened trading sentiment. The market participants will continue to watch the developments in the ongoing Parliament session. Meanwhile, investors find some support with the reports that the foreign portfolio investors (FPIs) bought shares worth a net Rs 185.42 crore on July 23, 2015.

On global front, Asian markets declined sharply after a survey showed China's manufacturing activity crumbled to 15-month lows, rekindling concerns for the region's exports as the world's second-largest economy struggles to arrest a broad downturn. Overnight, Wall Street had chalked up a three-day losing streak, with the Dow Jones Industrial Average closing about half a percent lower for the year, on the back of lackluster earnings from index majors such as 3M and Caterpillar, and the Nasdaq closing down by 0.55%. Back home, falling for the third consecutive day, Indian rupee weakened by another 20 paise to trade at 63.97 against the US dollar in early trade on appreciation of the American currency against other major currencies globally.

Back on street, stocks from Consumer Durables, Oil & Gas and FMCG counters were supporting the markets’ uptrend, while those from IT, Capital Goods and Auto counters was adding to the underlying cautious undertone. In scrip specific development, shares of Biocon have surged after the company reported a better-than-expected 23% year-on-year growth in consolidated net profit at Rs 126 crore for the quarter ended June 30, 2015. On the flip side, shares of Rallis India have dipped after reporting a 10.8% year-on-year decline in its consolidated net profit at Rs 33 crore for the quarter ended June 30, 2015, due to flat sales. The market breadth on BSE was positive, out of 2291 stocks traded, 1298 stocks advanced, while 892 stocks declined on the BSE. 

The BSE Sensex is currently trading at 28291.57, down by 79.27 points or 0.28% after trading in a range of 28259.12 and 28402.64. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.44%, while Small cap index up by 0.27%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.95%, Oil & Gas up by 0.05%, FMCG up by 0.05% and PSU up by 0.05%, while IT down by 0.52%, Capital Goods down by 0.46%, Auto down by 0.46%, TECK down by 0.40% and Power down by 0.22% were the top losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 1.29%, Bharti Airtel up by 1.13%, Cipla up by 1.13%, Sun Pharma Inds. up by 0.84% and Axis Bank up by 0.75%. On the flip side, Wipro down by 3.11%, GAIL India down by 2.75%, ICICI Bank down by 1.97%, Tata Motors down by 1.40% and Lupin down by 1.08% were the top losers.

Meanwhile, in an attempt to boost tourism sector, the government will soon launch six tourist circuits. These circuits are Ramayan Circuit, Desert Circuit, Eco Circuit, Wildlife Circuit and Rural Circuit. The government aims to create better infrastructure for facilitating tourists to visit more places. Tourism Minister Mahesh Sharma said that Work on Ramayan Circuit was already on and the government would soon come out with a detailed plan for other circuits as well.

Sharma also said that the government has finalized a blue print for growth of tourism and more tourist circuits will be added soon. Tourism Ministry has already been working on launching spiritual circuits across the country which includes Buddhist Circuit, Jain Circuit and Sufi Circuit.

The minister highlighted that India has picturesque beaches and mountain ranges; however its tourists prefer to go abroad and the sector was losing on account of 'perception'.

In the previous financial year, the government had launched two schemes - Swadesh Darshan and National Mission on Pilgrimage Rejuvenation and Spiritual Augmentation Drive (PRASAD). Under `600-crore Swadesh Darshan scheme, five circuits - Buddhist, Himalayan, Coastal, Krishna and Northeast - were identified to be developed to attract national and international tourists. In addition, 12 cities including Puri were identified under PRASAD. The government had approved Rs 131.05 lakh for four rural tourism sites in 2014-15.

The CNX Nifty is currently trading at 8572.10, down by 17.70 points or 0.21% after trading in a range of 8560.55 and 8589.15. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Bank of Baroda up by 2.19%, Indusind Bank up by 1.50%, Cipla up by 1.27%, Kotak Mahindra Bank up by 1.20% and Hindalco up by 1.10%. On the flip side, Wipro down by 3.28%, GAIL India down by 2.82%, ICICI Bank down by 2.01%, Tata Motors down by 1.53% and Ambuja Cement down by 1.31% were the top losers.

Asian markets were trading in red; Hang Seng was down by 0.89%, Nikkei 225 down by 0.59%, Jakarta Composite down by 1.08%, Taiwan Weighted down by 0.34%, KOSPI Index down by 0.72%, Straits Times down by 0.14% and FTSE Bursa Malaysia KLCI down by 0.13%. On the flip side Shanghai Composite was up by 1.06%.