Markets remain in red in a range bound trade

Markets are making all efforts to cross the red line in a choppy session of trade, but are facing stiff resistance due to weakness in the other regional markets and selling in metal stocks. While the BSE Sensex was way below the 28000 mark, Nifty too was finding it difficult to reclaim the 8500 level. Traders were also concerned with a Crisil research report stating that four states which produce over one-third of India’s foodgrain, and five crops that add up to more than a quarter of the production of grains and oilseeds, are vulnerable to this year’s deficit monsoons. Strength in the rupee too was unable to support the markets. Dollar weakened against major currencies after the minutes from a Fed meeting was unable to deliver any solid signals on when the era of near-zero rates will end. Shares of companies who received Reserve Bank of India's (RBI) approval to open payments banks were trading higher. Meanwhile, Raghuram Rajan, governor of the RBI said that payments banks will complement the traditional banking sector rather than compete with it. Rajan, however, said that he doesn’t see payments banks transition into universal banks. The banking stocks were slightly in somber mood despite RBI governor allaying concerns that these new entities can pose any threat to existing banks. Pharma stocks too kept moving higher after government once again expressed concern over EU's ban on medicines clinically tested by GVK Biosciences, saying it could lead to 'adverse campaign' about clinical trials done in the country. Back on street, only defensive FMCG gauge was trading in green, while maximum profit taking was witnessed at IT, tech and consumer durables counter.

The BSE Sensex is currently trading at 27926.04, down by 5.60 points or 0.02% after trading in a range of 27820.50 and 27964.60. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; while the BSE Mid cap index was tad up by 0.01%, the Small cap index was down by 0.34%.

The lone gaining sectoral index on the BSE was FMCG up by 2.07%, while IT down by 1.74%, Metal down by 1.50%, TECK down by 1.47%, Consumer Durables down by 1.10%, Realty down by 0.99% were the top losing indices on BSE.

The top gainers on the Sensex were Lupin up by 6.56%, Sun Pharma Inds. up by 3.53%, ITC up by 3.43%, Hindustan Unilever up by 2.59% and Dr. Reddys Lab up by 1.52%. On the flip side, Vedanta down by 3.46%, Infosys down by 3.30%, GAIL India down by 2.35%, ONGC down by 2.18% and Tata Motors down by 2.16% were the top losers.

Meanwhile, domestic steel manufacturers facing an onslaught of cheaper steel imports from China, Japan and Korea are likely to get some support with Road Transport and Highways Minister Nitin Gadkari  stating that the government will soon launch a portal for sale of steel at competitive prices to boost construction activity.

The minister drawing encouragement with 95 lakh tonnes of cement getting booked online said that “We will soon launch a webportal through which steel will be available for government sector at competitive prices by steelmakers as we did in cement.” Three lakh tonnes of cement have been sold while 95 lakh tonnes have been booked by various government departments through the portal where 37 cement makers have got 117 factories registered

The portal will ensure that various steel makers register themselves there and any state or central government department can book the steel through it. The minister said that the basic idea behind this is to boost construction activities in the country which in turn will accelerate economic growth. Also, this will make the system corruption free, transparent and time bound.

Domestic steelmakers have raised voice and are seeking steps from the government to counter cheap and large imports from China, especially after it recently devalued its currency considerably. Indian Steel Association has also recently written to the Steel Ministry to intervene to check cheap imports.

The CNX Nifty is currently trading at 8472.85, down by 22.30 points or 0.26% after trading in a range of 8453.60 and 8501.35. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Lupin up by 7.09%, Sun Pharma Inds. up by 3.54%, ITC up by 3.34%, BPCL up by 2.96% and Hindustan Unilever up by 2.64%. On the flip side, Cairn India down by 5.74%, Infosys down by 3.37%, Vedanta down by 3.37%, GAIL India down by 2.53% and HCL Tech. down by 2.39% were the top losers.

All the Asian markets barring Taiwan Weighted which was up by 7.97 points or 0.1% to 8,029.81, were trading in red.

Hang Seng slumped by 397.03 points or 1.71% to 22,770.82, Nikkei 225 lost 189.11 points or 0.94% to 20,033.52, Shanghai Composite was down by 44.49 points or 1.17% to 3,749.62, Jakarta Composite was lower by 34.66 points or 0.77% to 4,449.58, Straits Times lost 29.8 points or 0.98% to 3,011.45, KOSPI Index decreased by 24.83 points or 1.28% to 1,914.55 and FTSE Bursa Malaysia KLCI was down by 9.09 points or 0.57% to 1,573.35.