Benchmarks wipeout early gains to trade lower in noon deals

Indian equity benchmarks, paring all of their early gains, entered into red terrain in noon deals as sentiments took U-turn on worries that cooling demand in China will weigh on the trade-reliant region. Sentiments also remained dampened after rating agency Moody's Investors Service on Tuesday scaled down its projections for India's economic growth for 2015-16 to 7% from an earlier estimate of 7.5% on deficient monsoon. The rating agency, however, maintained its growth projections of 7.5% for the next financial year. Meanwhile, the India Meteorological Department (IMD) on August 17 stated that, for the country as a whole, cumulative rainfall during this year’s monsoon season was 10 per cent below the Long Period Average (LPA) until August 17.

Global cues remained sluggish with European counters making a choppy start with CAC and DAX  trading in red in early deals. Asian markets were trading mostly in red at this point of time. Back home, on the sectoral front, software, technology and capital goods witnessed the maximum gain in trade, while metal, realty and banking remained the top losers on the BSE sectoral space. The broader indices too were trading mixed, while the market breadth on the BSE was positive; there were 1,348 shares on the gaining side against 1,159 shares on the losing side while 125 shares remain unchanged.

The BSE Sensex is currently trading at 27786.96, down by 91.31 points or 0.33% after trading in a range of 27747.40 and 28040.73. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red and green; the BSE Mid cap index was down by 0.05%, while Small cap index up by 0.21%.

The top gaining sectoral indices on the BSE were IT up by 1.55%, TECK up by 1.05%, Capital Goods up by 0.69%, Consumer Durables up by 0.58% and Oil & Gas up by 0.06%, while Metal down by 2.08%, Realty down by 1.29%, Bankex down by 1.01%, PSU down by 0.66% and INFRA down by 0.46% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.29%, TCS up by 1.83%, Larsen & Toubro up by 1.20%, Tata Steel up by 0.59% and Mahindra & Mahindra up by 0.31%. On the flip side, Coal India down by 3.78%, GAIL India down by 3.76%, Hindalco down by 2.37%, Cipla down by 2.36% and ICICI Bank down by 1.55% were the top losers.

Meanwhile, accepting the fact that India is emerging as the new frontier of investment opportunities with the new initiatives by the government to facilitate trade and investment and also to boost economic relations, UAE agreed to increase their investment in India to $75 billion (about Rs 5 lakh crore) through the establishment of UAE-India Infrastructure Investment Fund. Besides, to enhance economic cooperation both the countries agreed to increase bilateral trade between them by 60% over next five years and also signed strategic partnership in energy sector including through UAE's participation in petroleum sectors in India and tie-ups in the third countries. This move will support investment in India's plans for rapid expansion of next generation infrastructure, especially in railways, ports, roads, airports and industrial corridors and parks.

Prime Minister Narendra Modi and Crown Prince Mohamed Bin Zayed AI Nahyan also agreed to facilitate participation of Indian companies in infrastructure development in the UAE. Both the countries will work together for promoting scientific collaboration, which include the area of renewable energy, sustainable development, arid agriculture, desert ecology, urban development and advanced healthcare.

In order to create a vibrant industrial base in UAE which could also benefit Indian enterprises, the UAE will tap India's expertise in Small and Medium Enterprises. Further, cooperation would be strengthened between UAE's increasingly sophisticated educational institutions and India's universities and higher research institutions.

India-UAE trade, valued at $180 million per annum in the 1970s, whereas today it is around $60 billion, making the UAE, India's third-largest trading partner for the year 2014-15 after China and the US.

The CNX Nifty is currently trading at 8439.85, down by 37.45 points or 0.44% after trading in a range of 8433.60 and 8525.75. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.28%, Infosys up by 1.90%, TCS up by 1.83%, Tech Mahindra up by 1.20% and Larsen & Toubro up by 1.00%. On the flip side, Coal India down by 3.84%, GAIL India down by 3.64%, NMDC down by 3.43%, PNB down by 2.80% and Cairn India down by 2.43% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 209.11 points or 0.88% to 23,605.54, Shanghai Composite tumbled 204.39 points or 5.12% to 3,789.27, Nikkei 225 shed 65.79 points or 0.32% to 20,554.47, Jakarta Composite declined 45.88 points or 1% to 4,539.51, Taiwan Weighted slipped 36.2 points or 0.44% to 8,177.22, KOSPI Index dropped 12.26 points or 0.62% to 1,956.26 and Straits Times was down by 6.7 points or 0.22% to 3,060.65. 

On the flip side, FTSE Bursa Malaysia KLCI was up by 7.96 points or 0.51% to 1,580.50.

European Markets were trading mostly in red; Germany’s DAX lost 0.16% and France’s CAC was down by 0.13%, while UK’s FTSE was up by 0.07%.