Benchmarks trade marginally in red in early deals

Indian equity benchmarks are trading slightly in the red in early deals on Tuesday, after making a flat opening. Sentiment remained under pressure on reports that foreign portfolio investors (FPIs) sold shares worth a net Rs 14.43 crore on August 10, 2015, as per provisional data released by the stock exchanges. Depreciation in Indian rupee against dollar too weighed down sentiments. The rupee weakened by 28 paise to 64.15 against the US dollar in early trade today at the Interbank Foreign Exchange, after China's central bank allowed its domestic currency yuan to depreciate almost 2 per cent against the greenback to levels last seen three years ago. Metal stocks were trading in red following China devalued its currency, yuan. However, losses remained capped with the Organization for Economic Cooperation and Development's (OECD) statement that it expected India's growth to be stable, even as it forecast a slowing of the Chinese economy. Traders were seen piling position in IT, TECK, Realty, Consumer Durables and Oil & Gas, while selling was witnessed in Metal, FMCG, Auto, Power and Capital Goods.

In scrip specific development, Engineers India was trading lower after the company reported 29% year-on-year (Y-o-Y) decline in net profit at Rs 56.80 crore for the first quarter ended June 30, 2015 (Q1), due to lower operational income. The state-owned company had posted a profit of Rs 80.40 crore in the year-ago quarter.

On the global front, US markets ended higher on renewed buying interest in commodity stocks. Asian markets were trading mostly in red as risk-off sentiments resurfaced across the board following PBOC’s latest Yuan depreciation move.

Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,500 and 28,100 levels respectively. The market breadth on BSE was positive in the ratio of 1002: 886 while 67 scrips remained unchanged.

The BSE Sensex is currently trading at 28100.56, down by 1.16 points or 0.00% after trading in a range of 28013.17 and 28205.12. 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 0.17%, while Small cap index gained 0.11%.

The top gaining sectoral indices on the BSE were IT up by 0.99%, TECK up by 0.71%, Realty up by 0.52%, Consumer Durables up by 0.45% and Oil & Gas up by 0.30%, while Metal down by 0.72%, FMCG down by 0.41%, Auto down by 0.33%, Power down by 0.33% and Capital Goods down by 0.20% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.85%, SBI up by 1.61%, Vedanta up by 0.98%, Maruti Suzuki up by 0.52% and TCS up by 0.40%. On the flip side, Hindalco down by 1.67%, Tata Steel down by 1.55%, Hindustan Unilever down by 1.02%, Tata Motors down by 0.97% and NTPC down by 0.91% were the top losers.

Meanwhile, with the complete washout of the Monsoon session of the parliament in sight, the government will be making its last bid to make the session fruitful and will be bringing in the much-awaited bill on Goods and Services Tax (GST) for passage in the Rajya Sabha, though there will be big doubts of opposition Congress allowing the passage of the Constitution Amendment Bill.

Finance Minister Arun Jaitley will move the Constitution (One Hundred and Twenty-second Amendment) Bill, 2014, incorporating recommendations made by a House Select Committee. The report of the Rajya Sabha Select Committee was tabled in Parliament last month, which had suggested to compensate the states fully for five years for any revenue loss for GST roll out. The panel has given its report endorsing majority of the provisions, while suggesting changes in compensation to states and definition of supply for the purpose of states levying additional one per cent tax.

The GST Constitution Amendment Bill is waiting nod of Rajya Sabha, where the ruling NDA does not have a majority and is relying on the support of regional parties for its passage, as it requires two-third majority to pass a constitution amendment bill.The current monsoon session of Parliament ends on August 13.

The Goods and Services Tax that seeks to replace all indirect taxes, with a uniform levy has already been approved by the Lok Sabha and was in last session referred to a Rajya Sabha Select Committee.

The CNX Nifty is currently trading at 8512.55, down by 13.05 points or 0.15% after trading in a range of 8494.60 and 8556.25. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were SBI up by 1.61%, Infosys up by 1.22%, Vedanta up by 0.86%, Bank Of Baroda up by 0.85% and Zee Entertainment up by 0.67%. On the flip side, Tata Steel down by 1.99%, NMDC down by 1.82%, Hindalco down by 1.76%, BHEL down by 1.49% and Hindustan Unilever down by 1.18% were the top losers.

Asian markets were trading mostlyin red; Taiwan Weighted decreased 32.46 points or 0.38% to 8,434.38, Jakarta Composite decreased 26.37 points or 0.56% to 4,722.58, Straits Times decreased 18.71 points or 0.59% to 3,177.95, Shanghai Composite decreased 15.55 points or 0.4% to 3,912.86 and FTSE Bursa Malaysia KLCI decreased 15.33 points or 0.93% to 1,639.04.

On the flip side, KOSPI Index increased 0.63 points or 0.03% to 2,003.80, Hang Seng increased 226.4 points or 0.92% to 24,747.52, Nikkei 225 decreased 195.89 points or 0.94% to 20,612.80.