Benchmarks extend losses; Power, Metal drag

Indian equity markets extend losses in the late afternoon session on account of selling in frontline blue chip counters taking cues from the Asian counterparts. The weakness in the rupee also weighed on the market sentiment which slipped to a two-year low of 66.78 as foreign investors continued to liquidate their investment in the equity market.  Investors have started eyeing the IIP data slated for release on September 11 which would give further direction of the market. Traders were seen selling in Power, Metal and FMCG sector stocks. In scrip specific development, hectic buying activity was witnessed in ADAG group companies like Reliance Capital, Reliance Communications, Reliance Infrastructure and Reliance Power which were trading up in weak market.

On the global front, the Asian markets traded mostly in red, while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 7,650 and 25,200 levels respectively. The market breadth on BSE was negative in the ratio of 802:1687 while 95 scrips remained unchanged.

The BSE Sensex is currently trading at 25135.65, down by 66.25 points or 0.26% after trading in a range of 25056.80 and 25387.32. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.38%, while Small cap index down by 0.79%.

The losing sectoral indices on the BSE were Power down by 1.41%, Metal down by 1.32%, FMCG down by 1.02%, PSU down by 0.78% and TECK down by 0.75%.

The top gainers on the Sensex were HDFC up by 2.61%, Tata Motors up by 1.07%, Maruti Suzuki up by 0.76%, Cipla up by 0.65% and SBI up by 0.58%.

On the flip side, Coal India down by 2.18%, Lupin down by 1.82%, BHEL down by 1.69%, GAIL India down by 1.60% and Dr. Reddys Lab down by 1.53% 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 7628.30, down by 26.75 points or 0.35% after trading in a range of 7606.85 and 7705.05. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were HDFC up by 2.65%, Tech Mahindra up by 1.45%, Yes Bank up by 1.09%, Tata Motors up by 1.05% and Maruti Suzuki up by 0.98%.

On the flip side, NMDC down by 3.61%, Idea Cellular down by 2.65%, Coal India down by 2.40%, Asian Paints down by 2.10% and Power Grid down by 2.06% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 257.09 points or 1.23% to 20,583.52, Jakarta Composite decreased 114.89 points or 2.6% to 4,300.46, Shanghai Composite decreased 79.75 points or 2.52% to 3,080.42, Taiwan Weighted decreased 14.04 points or 0.18% to 7,986.56, FTSE Bursa Malaysia KLCI decreased 11.43 points or 0.72% to 1,577.73, Straits Times decreased 6.09 points or 0.21% to 2,857.72 and KOSPI Index decreased 2.82 points or 0.15% to 1,883.22.

On the other hand, Nikkei 225 increased 68.31 points or 0.38% to 17,860.47.

The European markets were trading in green; UK’s FTSE 100 increased 63.49 points or 1.05% to 6,106.41, France’s CAC increased 51.45 points or 1.14% to 4,574.53 and Germany’s DAX increased 108.88 points or 1.08% to 10,146.92.