Benchmarks erase gains in late afternoon session

Indian equity markets erased their gains and are now trading in red in the late afternoon session on account of selling in frontline blue chip counters.  The sentiments remained dampened on report that foreign portfolio investors (FPIs) remained net sellers in domestic equities worth Rs 675.32 crore on Tuesday, as per provisional data released by the stock exchanges. Investors remained on sidelines after India’s weather office India Meteorological Department (IMD) stated that for the country as a whole, cumulative rainfall during this year’s monsoon season was 12% below the Long Period Average (LPA) until 1 September 2015. Traders were seen piling position in IT, TECK and FMCG stocks while selling was witnessed in Power, Bankex and Auto sector stocks.  In scrip specific development, Info Edge (India) was trading firm after the central bank allowed foreign investors to buy up to 50% stake in the company.

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 7,800 and 25,700 levels respectively. The market breadth on BSE was negative in the ratio of 1221:1243 while 101 scrips remained unchanged.

ned on report that foreign portfolio investors (FPIs) remained net sellers in domestic equities worth Rs 675.32 crore on Tuesday, as per provisional data released by the stock exchanges. The BSE Sensex is currently trading at 25606.54, down by 89.90 points or 0.35% after trading in a range of 25546.17 and 25939.37. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index was down by 0.13%, while Small cap index up by 0.47%.

The gaining sectoral indices on the BSE were IT up by 1.84%, TECK up by 1.52%, FMCG up by 1.18%, Realty up by 0.96% and Metal up by 0.50%, while Power down by 1.54%, Bankex down by 1.43%, Auto down by 1.03%, PSU down by 1.01% and Consumer Durables down by 1.00% were the losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.84%, Tata Steel up by 2.13%, Lupin up by 1.81%, Infosys up by 1.75% and ITC up by 1.39%.

On the flip side, Mahindra & Mahindra down by 3.69%, BHEL down by 3.61%, HDFC down by 2.96%, Axis Bank down by 2.59% and SBI down by 2.43% were the top losers.

Meanwhile, with an aim to promote competitiveness among states to attract investments and to bring India into the top 50 in terms of ease of doing business in the next three years, the Department of Industrial Policy and Promotion (DIPP) with the help of World Bank this week is expected to release the report of the ranking of states on ease of doing business. Improved ranking will help in attracting both domestic and foreign investments.

Under this, DIPP had circulated a set of 285 questions to all states which have already been responded by the State Governments. Further, the ranking will be based on 98 parameters with the exception of two parameters (getting credit and protecting minority investors) as India does not feature in top 100 in the remaining parameters. Although central government departments are taking steps to improve India's ranking in ease of doing, about 70% work happens in the states. So, DIPP has to take measures in this direction.

Presently, India is ranked 142nd among 189 nations in the World Bank's 'Ease of Doing Business 2015'. FDI in the country grew by 31% to $9.50 billion, during April-June period of the current fiscal compared to $7.23 billion in the same period last fiscal.

The CNX Nifty is currently trading at 7755.70, down by 30.15 points or 0.39% after trading in a range of 7742.55 and 7862.55. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 4.04%, TCS up by 2.85%, Ambuja Cement up by 2.63%, Idea Cellular up by 2.21% and ACC up by 2.16%.

On the flip side, Mahindra & Mahindra down by 4.04%, BHEL down by 3.83%, PNB down by 3.71%, HDFC down by 3.27% and Axis Bank down by 2.69% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 250.49 points or 1.18% to 20,934.94, Nikkei 225 decreased 70.29 points or 0.39% to 18,095.40, FTSE Bursa Malaysia KLCI decreased 15.66 points or 0.97% to 1,593.55, Jakarta Composite decreased 15.57 points or 0.35% to 4,396.89 and Shanghai Composite decreased 6.46 points or 0.2% to 3,160.17.

On the other hand, Straits Times increased 0.64 points or 0.02% to 2,883.41, KOSPI Index increased 0.99 points or 0.05% to 1,915.22 and Taiwan Weighted increased 17.73 points or 0.22% to 8,035.29.

The European markets were trading mostly in red; UK’s FTSE 100 decreased 24.46 points or 0.4% to 6,034.08, Germany’s DAX decreased 18.27 points or 0.18% to 9,997.30 and France’s CAC decreased 14.32 points or 0.32% to 4,526.84.