Benchmarks extend losses; Realty, Metal drag

Indian equity markets extended their losses in late afternoon session on account of selling in frontline blue chip counters and in absence of any upside triggers. The sentiments were under pressure after Chinese authorities yesterday devalued its currency in a move that sparked fears of a global currency war and accusations that Beijing was unfairly supporting its struggling exporters. Investors maintained cautious approach ahead of the June Index of Industrial Production (IIP) and July Consumer Price Index (CPI) numbers, scheduled to be released later today. Traders were seen piling position in IT, TECK and Consumer Durables stocks, while selling was witnessed in Realty, Metal and PSU sector stocks. In scrip specific development, Tata Steel was trading firm after the steel major’s consolidated net profit in the first quarter of fiscal 2015-16 surged over 100% on the back of sharp decline in operating expenses, lower tax outgo and higher other income.

On the global front, the Asian markets traded in red, while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,400 and 27,700 levels respectively. The market breadth on BSE was negative in the ratio of 749:1935 while 113 scrips remained unchanged.

The BSE Sensex is currently trading at 27647.81, down by 218.28 points or 0.78% after trading in a range of 27626.34 and 27883.33. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.80%, while Small cap index down by 1.27%.

The gaining sectoral indices on the BSE were IT up by 2.87%, TECK up by 1.95% and Consumer Durables up by 1.27%, while Realty down by 4.23%, Metal down by 3.74%, PSU down by 2.86%, Oil & Gas down by 2.65% and Bankex down by 2.13% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 3.59%, Sun Pharma up by 3.49%, TCS up by 3.24%, Tata Steel up by 2.07% and Wipro up by 1.78%.

On the flip side, Vedanta down by 5.97%, Coal India down by 5.82%, Hindalco down by 5.61%, SBI down by 3.21% and ICICI Bank down by 3.15% were the top losers.

Meanwhile, centre has asked the state governments to set up goals on 'ease of doing business' in order to woo private investors in all sectors and to bring out India in top 50 ranks of doing business. Also the state government should promote self-compliance and self-certification in order to provide hassle free atmosphere for investors of industrial sector.

G R Raghavender, director and salt commissioner, Department of Industrial Policy and Promotion (DIPP) has stressed on principles of ease of doing business stating that the state government should adapt online work from manual and also eliminate the touch points with applicants so that time line be reduced through single window system.

Recently the state government had taken all action points on ease of doing business for creating a possible framework to stimulate investments in manufacturing. The major departments under Industries including Labour, Pollution Control Board, and Finance were put on e-sites whereas procedures were also simplified for applicants.

The CNX Nifty is currently trading at 8389.40, down by 72.95 points or 0.86% after trading in a range of 8381.30 and 8446.95. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 3.61%, Infosys up by 3.19%, TCS up by 3.10%, Tech Mahindra up by 2.78% and HCL Tech up by 2.67%.

On the flip side, Vedanta down by 5.91%, Coal India down by 5.90%, Hindalco down by 5.47%, BPCL down by 5.33% and ICICI Bank down by 3.23% were the top losers.

The Asian markets were trading in red; Hang Seng decreased 582.19 points or 2.38% to 23,916.02, Nikkei 225 decreased 327.98 points or 1.58% to 20,392.77, Jakarta Composite decreased 161.45 points or 3.49% to 4,461.15, Taiwan Weighted decreased 110.76 points or 1.32% to 8,283.38, Straits Times decreased 92.69 points or 2.94% to 3,060.37, Shanghai Composite decreased 41.59 points or 1.06% to 3,886.32, FTSE Bursa Malaysia KLCI decreased 29.38 points or 1.8% to 1,607.33 and KOSPI Index decreased 11.18 points or 0.56% to 1,975.47.

The European markets were trading in red; Germany’s DAX decreased 273.36 points or 2.42% to 11,020.29, France’s CAC decreased 134.21 points or 2.63% to 4,964.82 and UK’s FTSE 100 decreased 91.22 points or 1.37% to 6,573.32.