Benchmarks extend losses; Realty, Bankex drag

Indian equity markets extended their losses to continue their weak trade in late afternoon session on account of selling in frontline blue chip counters.  The sentiments were under pressure after a private report stated that the country remains a long way off from a complete turnaround in the corporate investment cycle despite various positive economic indicators. Traders were seen piling position in FMCG stocks while selling was witnessed in Realty, Bankex and Metal sector stocks. In scrip specific development, Sun Pharmaceutical Industries and Lupin were trading firm after both the companies got approval for new drugs from the US Food and Drug Administration (USFDA). The new drug approvals for Sun Pharma and Lupin can offer millions of dollars in revenues to these companies. ITC was trading in green after a foreign brokerage firm upgraded the company to overweight for target price of Rs 400 per share.

On the global front, the Asian markets traded mostly in red, while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,450 and 27,800 levels respectively. The market breadth on BSE was negative in the ratio of 737:1963 while 98 scrips remained unchanged.

The BSE Sensex is currently trading at 27726.46, down by 205.18 points or 0.73% after trading in a range of 27667.78 and 27964.60. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.15%, while Small cap index down by 1.31%.

The gaining sectoral indices on the BSE was FMCG up by 1.87%, while Realty down by 3.67%, Bankex down by 1.92%, Metal down by 1.91%, IT down by 1.79% and Capital Goods down by 1.71% were the losing indices on BSE.

The top gainers on the Sensex were Lupin up by 6.02%, ITC up by 4.22%, Sun Pharma up by 2.62%, Dr. Reddys Lab up by 1.79% and Hindustan Unilever up by 0.94%.

On the flip side, Vedanta down by 3.41%, Infosys down by 2.82%, Tata Steel down by 2.68%, BHEL down by 2.67% and GAIL India down by 2.45% were the top losers.

Meanwhile, India has extended support for the participation at the major international exposition EXPO-2017 to be held in Central Asia's biggest country Kazakhstan. The participation will give a new impetus to the strengthening of the Kazakh-Indian partnership. This decision was taken by the India after the visit of Rapil Zhoshybayev, Commissioner of the International specialized exhibition EXPO-2017 and First Deputy Minister of Foreign Affairs of Kazakhstan to India.

While on three-day visit to India to promote Expo-2017 this week, Zhoshybayev has stated that objective behind his visit was to promote the main ideas and themes of the event, to get the Indian Government's official confirmation of participation in the event, to hold negotiations with the Indian leadership and to establish contact with leading Indian companies that have specialized in the sphere of alternative energy sources.

As far as India was concerned, Zhoshybayev has said that it has been agreed in principle to give New Delhi an additional 1000 square meters of space at the Expo-2017 venue so that it can maximize potential for promotion of clean sources of energy in the Indian context. Further, he also said that the Kazakh Government may allocate some more space away from the main exhibition venue to India. Besides, Kazakhstan and India are looking at new avenues for improving business ties. Easing visa procedures, having more flights between New Delhi and Astana, a plan for any individual to stay in Kazakhstan for three days without a visa and putting a system in place where buying an air ticket to Astana will give Indians free access to Expo-2017.

Expo-2017 is going to be held from June 10, 2017 to September 10, 2017, where Kazakhstan is expecting the participation of about 100 nations and 15 international organizations. Further, arrangements are being made to receive an anticipated five million visitors.

The CNX Nifty is currently trading at 8413.00, down by 82.15 points or 0.97% after trading in a range of 8396.00 and 8501.35. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Lupin up by 5.93%, ITC up by 4.13%, Sun Pharma up by 2.74%, Dr. Reddy’s Lab up by 1.86% and BPCL up by 1.61%.

On the flip side, Cairn India down by 5.24%, Bank of Baroda down by 4.98%, PNB down by 3.99%, Ultratech Cement down by 3.33% and Yes Bank down by 3.27% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 410.38 points or 1.77% to 22,757.47, Nikkei 225 decreased 189.11 points or 0.94% to 20,033.52, Shanghai Composite decreased 129.82 points or 3.42% to 3,664.29, Jakarta Composite decreased 45.62 points or 1.02% to 4,438.63, Straits Times decreased 30.35 points or 1% to 3,010.90, KOSPI Index decreased 24.83 points or 1.28% to 1,914.55 and FTSE Bursa Malaysia KLCI decreased 3.42 points or 0.22% to 1,579.02.

On the other hand, Taiwan Weighted increased 7.97 points or 0.1% to 8,029.81.

The European markets were trading in red; Germany’s DAX decreased 80.16 points or 0.75% to 10,601.99, France’s CAC decreased 24.94 points or 0.51% to 4,859.16 and UK’s FTSE 100 decreased 31.47 points or 0.49% to 6,371.98.