Markets continue to trade lower in tight band in noon deals

Pressurized by feeble global cues, key barometer gauges continued to trade lower in range bound trade in noon deals. Sentiments remained dampened with a private report stating that the country remains a 'long way off' from a complete turnaround in the corporate investment cycle despite various positive economic indicators. However, losses remained capped with Reserve Bank of India governor Raghuram Rajan’s statement that Indian economy is showing signs of improvement and the devaluation of the Chinese yuan was not something to be concerned about at current levels. He also added that the rural demand coming back more strongly and that would be a very tremendous bonus to Indian economy. Appreciation in Indian rupee too provided some fillip to markets. The rupee appreciated by 14 paise to 65.13 against the US dollar in noon deals at the Interbank Foreign Exchange market today on increased selling of the American currency by exporters.

On the global front, European counters have made a weak start with CAC, DAX and FTSE all trading with a cut of around half a percent. Asian markets were trading mostly in red to two-year lows at this point of time on concerns about slowing growth in China and pressured oil prices on Thursday while minutes from the US Federal Reserve's July meeting dented expectations for a rate hike in mid-September. Back home, on the sectoral front, fast moving consumer goods and healthcare witnessed the maximum gain in trade, while software, metal and technology remained the top losers on the BSE sectoral space. The broader indices too were reeling under pressure, while the market breadth on the BSE was negative; there were 955 shares on the gaining side against 1,550 shares on the losing side while 102 shares remain unchanged.

The BSE Sensex is currently trading at 27896.38, down by 35.26 points or 0.13% after trading in a range of 27820.50 and 27964.60. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.10%, while Small cap index down by 0.50%.

The only gaining sectoral indices on the BSE were FMCG up by 2.26% and Healthcare up by 2.08%, while IT down by 1.88%, Metal down by 1.78%, TECK down by 1.58%, Realty down by 1.27% and Consumer Durables down by 1.17% were the top losing indices on BSE.

The top gainers on the Sensex were Lupin up by 6.95%, ITC up by 4.09%, Sun Pharma up by 3.53%, Hindustan Unilever up by 2.37% and Dr. Reddys Lab up by 1.54%. On the flip side, Vedanta down by 3.51%, Infosys down by 3.44%, Tata Steel down by 2.32%, GAIL India down by 2.26% and ONGC down by 2.17% were the top losers.

Meanwhile, Ministry of New and Renewable Energy has made a request for public Feedback/Views/Comments on the National Biofuels Policy and the Motor spirit and High Speed Diesel Control in respect of the changed overall outlook of the biofuel programme which seeks to allow the producers to directly sell fuel to consumers especially bulk customers like railways in a free market economy. The feedback could be sent by September 20 at biofuels.mnre@gov.in.

The National Biofuel Policy states that the responsibility of storage, distribution and marketing of biofuels will rest with oil marketing companies. Besides, the policy states that the exports of biofuels will be permitted only when domestic requirements are met. Further, The Motor spirit and High Speed Diesel Control Order also stipulates that no other person should get engaged in the business of selling these products apart from the dealer or the oil company.

Last year, while considering the proposal to facilitate manufacturers of biodiesel to directly sell the fuel to bulk consumers, Power, Coal, New & Renewable Energy Minister Piyush said no biodiesel has been procured by oil marketing companies in the last three years while around 92,000 tonnes biodiesel were exported during the same period. Meanwhile an indicative target of 20% blending for bio-diesel and bio-ethanol, by 2017 has been proposed.The Policy aims to bring about accelerated development and promotion of the cultivation, production and use of biofuels to increasingly substitute petrol and diesel for transport and used in stationary and other applications, while contributing to energy security, climate change mitigation, apart from creating new employment opportunities and leading to environmentally sustainable development.

The CNX Nifty is currently trading at 8470.15, down by 25.00 points or 0.29% after trading in a range of 8453.60 and 8501.35. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Lupin up by 7.00%, ITC up by 3.96%, Sun Pharma up by 3.47%, BPCL up by 3.07% and Hindustan Unilever up by 2.44%. On the flip side, Cairn India down by 5.74%, Infosys down by 3.62%, Vedanta down by 3.37%, Tata Steel down by 2.38% and GAIL India down by 2.35% were the top losers.

Asian markets were trading mostly in red; Hang Seng tumbled 505.05 points or 2.18% to 22,662.80, Nikkei 225 decreased 189.11 points or 0.94% to 20,033.52, Shanghai Composite declined 74.79 points or 1.97% to 3,719.32, Straits Times dropped 34.28 points or 1.13% to 3,006.97, Jakarta Composite dipped 33.79 points or 0.75% to 4,450.45, KOSPI Index shed 24.83 points or 1.28% to 1,914.55 and FTSE Bursa Malaysia KLCI was down by 8.51 points or 0.54% to 1,573.93.

 On the flip side, Taiwan Weighted was up by 7.97 points or 0.1% to 8,029.81.

European Markets were trading in red; Germany’s DAX lost 0.64%, France’s CAC declined 0.28% and UK’s FTSE was down by 0.47%.