Benchmarks erase gains; Realty, Power drag

Indian equity markets erased gains and started trading in red in the late afternoon session on account of selling in frontline blue chip counters. The sentiments were under pressure on report that the country’s services sector witnessed around 14 percent decline in foreign direct investment (FDI) at $636 million (Rs 4,036 crore) in the first quarter of the current fiscal. Investors remained on sidelines ahead of quarterly Gross Domestic Product (GDP) data scheduled to be released post market hours today. Traders were seen piling position in Metal, PSU and Oil & Gas stocks while selling was witnessed in Realty, Power and Auto sector stocks. In scrip specific development, Bharti Infratel was trading firm after the foreign brokerage firm upgraded the rating of the firm to buy from sell revising the price target upside.

On the global front, the Asian markets traded mostly in green, while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,000 and 26,400 levels respectively. The market breadth on BSE was negative in the ratio of 1065:1420 while 103 scrips remained unchanged.

The BSE Sensex is currently trading at 26339.61, down by 52.77 points or 0.20% after trading in a range of 26225.71 and 26504.73. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.09%, while Small cap index down by 0.21%.

The gaining sectoral indices on the BSE were Metal up by 0.92%, PSU up by 0.65% and Oil & Gas up by 0.59%, while Realty down by 1.09%, Power down by 0.68%, Auto down by 0.55%, Capital Goods down by 0.53% and INFRA down by 0.47% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 3.17%, Lupin up by 2.38%, Cipla up by 2.30%, Coal India up by 2.25% and Dr. Reddy’s Lab up by 1.94%.

On the flip side, Bharti Airtel down by 2.50%, BHEL down by 1.81%, Bajaj Auto down by 1.37%, ICICI Bank down by 1.32% and Tata Steel down by 1.18% were the top losers.

Meanwhile, the government is planning to launch 2 kg bottles for LPG cylinders at local kirana stores which will be beneficial for the rural people and poor who cannot afford to pay the price of a 14.2-kg or even 5-kg cylinder. To begin with, the penetration of 5-kg cylinder will be increased. New subsidized connections of 5-kg cylinders in rural as well as far flung areas will be issued in first place. Additionally, it has introduced online booking of new connections for subsidized cooking fuel.

Further, the 2 kg cylinders will provide the LPG requirements for all sections of society including economically weaker families, students and migrant labourers who do not have proof of address due to acquiring residence on temporary basis. While talking about online booking of the LPG connection, Oil Minister Dharmendra Pradhan has said that consumers can book a new connection online which will be verified within 48 hours and a person from the nearest LPG agency will deliver a new connection at the door-step in next 3 to 4 days. The online booking will benefit end hassles customers face in running to gas agencies for getting a new LPG connection.

At present, LPG is available in 14.2-kg cylinders, which are not very convenient to carry and its cost at Rs 418 is considered high for poor and rural population. A 5-kg cylinder which was introduced in October 2013 is priced at Rs 155.

The CNX Nifty is currently trading at 7985.40, down by 16.55 points or 0.21% after trading in a range of 7954.30 and 8043.60. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 3.37%, NMDC up by 3.20%, Lupin up by 2.67%, Coal India up by 2.41% and Cipla up by 2.33%.

On the flip side, Power Grid down by 3.07%, Bharti Airtel down by 2.61%, ACC down by 2.52%, Bajaj Auto down by 1.83% and BHEL down by 1.81% were the top losers.

The Asian markets were trading mostly in green; KOSPI Index increased 3.82 points or 0.2% to 1,941.49, Jakarta Composite increased 57.45 points or 1.29% to 4,503.65, Hang Seng increased 58.19 points or 0.27% to 21,670.58 and Taiwan Weighted increased 155.74 points or 1.94% to 8,174.92.

On the other hand, Nikkei 225 decreased 245.84 points or 1.28% to 18,890.48, Shanghai Composite decreased 26.36 points or 0.82% to 3,205.99 and Straits Times decreased 21.35 points or 0.72% to 2,934.59. Malaysia stock exchange was closed on account of ‘National Day’ holiday.

The European markets were trading in red; Germany’s DAX decreased 134.27 points or 1.3% to 10,164.26 and France’s CAC decreased 51.27 points or 1.1% to 4,623.86. UK’s FTSE is closed on account of ‘Summer Bank Holiday’.