Benchmarks trade choppy in noon deals; metal stocks lose shine

Indian equity benchmarks continue to trade choppy in noon deals tracking weak cues from the Asian peers. Depreciation in Indian rupee too weighed down sentiments. The rupee depreciated by another 27 paise to 66.74 against the dollar in noon deals as the US currency strengthened in overseas markets. Meanwhile, investors would be eyeing the IIP data slated for release on September 11. Selling in metal counter too dampened the sentiments post Chinese revision of annual economic growth rate in 2014 to 7.3% from the previously released figure of 7.4%. However, losses remained capped as some support came with government stating that it wants an extended Monsoon session so that the Constitutional amendment GST bill can be approved and has also appealed to Congress to support the key reform to accelerate the country's growth.

On the global front, Asian stocks were trading mostly in red at this point of time as a stronger yen weighed on shares in Tokyo and investors awaited the resumption of trading in China following a holiday. However, European counters have made a firm start, CAC, DAX and FTSE were trading with a gain of around a percent in early deals. Back home, on the sectoral front, realty remained the lone gainer in trade, while healthcare, metal and power 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 801 shares on the gaining side against 1,558 shares on the losing side while 80 shares remain unchanged.

The BSE Sensex is currently trading at 25168.44, down by 33.46 points or 0.13% after trading in a range of 25056.80 and 25387.32. There were 7 stocks advancing against 22 stocks declining on the index while 1 stock remained unchanged.

The broader indices were trading in red; the BSE Mid cap index was down by 1.19%, while Small cap index down by 0.74%.

The lone gaining sectoral indices on the BSE was Realty up by 0.01%, while Healthcare down by 1.26%, Metal down by 1.20%, Power down by 1.00%, PSU down by 0.79% and Capital Goods down by 0.69%, were the losing indices on BSE.

The top gainers on the Sensex were HDFC up by 2.71%, Tata Motors up by 0.99%, Maruti Suzuki up by 0.96%, Cipla up by 0.36% and HDFC Bank up by 0.33%. On the flip side, GAIL India down by 2.67%, Coal India down by 2.26%, Lupin down by 1.63%, Dr. Reddys Lab down by 1.38% and BHEL down by 1.38% were the top losers.

Meanwhile, Maharashtra government is expected to sign Memorandum of Cooperation (MoC) with the Japanese government for big ticket projects in the state during Chief Minister Devendra Fadnavis' five-day visit to the country this week. Under the proposed MoC, Japan External Trade Organization (JETRO) is likely to support investment activities in or around the 1,000 acres reserved for an industrial park at Supa-Parner Industrial Estate near Pune. The Maharashtra government would improve business environment of this park to meet global standards by utilizing incentives.

Besides, a 'Project Facilitation Committee (PFC)' comprising of JETRO officials, Japanese companies and Maharashtra government is also likely to be launched to strengthen cooperation between the two governments and also resolve the difficulties that Japanese companies may be facing in their projects as soon as possible under the leadership of Maharashtra Industrial Development Corporation (MIDC). Meanwhile, as part of its infrastructure development, the state may ask the Japanese government to develop infrastructure with a view to utilize Japan's public funds.

Additionally, in a mutually beneficial manner, both the governments are likely to seek cooperation in future metro projects such as Mumbai metro Phase 2, Nagpur metro, Pune metro and in the important infrastructure projects such as Mumbai Trans-Harbor Link (MTHL). In order to improve the business environment and accelerate infrastructure development, the state is making all possible efforts.

The CNX Nifty is currently trading at 7640.85, down by 14.20 points or 0.19% after trading in a range of 7606.85 and 7705.05. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were HDFC up by 2.72%, Maruti Suzuki up by 1.07%, Kotak Mahindra Bank up by 0.89%, Tata Motors up by 0.87% and Cairn India up by 0.82%. On the flip side, Idea Cellular down by 2.75%, GAIL India down by 2.72%, Coal India down by 2.55%, Lupin down by 1.73% and NMDC down by 1.73% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 105.68 points or 0.51% to 20,734.93, Jakarta Composite declined 104.33 points or 2.36% to 4,311.02, Shanghai Composite tumbled 93.08 points or 2.95% to 3,067.09, Taiwan Weighted shed 14.04 points or 0.18% to 7,986.56, FTSE Bursa Malaysia KLCI dropped 12.71 points or 0.8% to 1,576.45, Straits Times slipped 9.63 points or 0.34% to 2,854.18 and KOSPI Index was down by 2.82 points or 0.15% to 1,883.22. 

On the flip side, Nikkei 225 increased 68.31 points or 0.38% to 17,860.47.

European Markets were trading in green; Germany’s DAX surged 1.11%, France’s CAC gained 1.16% and UK’s FTSE was up by 0.98%.