Markets continue to trade weak; Nifty below 7750

Markets continue to trade weak in the early noon session, though the selling has got arrested but the damage done in early trade is clearly visible with the benchmarks still trading lower by over a percent, as investors preferred to book profits after two-session rally amid weak global cues and on worries over likely delay in Goods and Services Tax. Depreciation in rupee too dampened sentiment. The rupee which fell by 18 paise in late noon trade to 66.59 against the US currency at the Interbank Foreign Exchange on foreign fund outflows amid appreciation in the US currency overseas, too weighed on the sentiments.

On the global front, Asian markets were trading mostly in red. Weak economic data from Japan added to concerns about a global economic slowdown and dampened investors' appetite for riskier assets. Back home, all the sectoral indices, led by realty, Bankex, consumer durables, INFRA and power were trading in the negative zone. The market breadth on BSE was negative in the ratio of 561:1558 while 63 scrips remained unchanged. 

The BSE Sensex is currently trading at 25405.62, down by 313.96 points or 1.22% after trading in a range of 25287.50 and 25522.96. There were 2 stocks advancing against 28 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.82%, while Small cap index down by 1.12%.

The top losing sectoral indices on the BSE were Bankex down by 2.12%, Consumer Durables down by 1.89%, Realty down by 1.89%, Power down by 1.85% and INFRA down by 1.71%, while there were no gainers on the sectoral index.

The top gainers on the Sensex were TCS up by 0.52% and ITC up by 0.24%. On the flip side, Hindalco down by 4.39%, SBI down by 2.70%, Hindustan Unilever down by 2.55%, ONGC down by 2.34% and HDFC down by 2.32% were the top losers.

Meanwhile, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for off-shore wind power generation policy. With this approval, the Ministry of New & Renewable Energy (MNRE) has been authorized as the Nodal Ministry for use of offshore areas within the Exclusive Economic Zone (EEZ) of the country. On the other side, the National Institute of Wind Energy (NIWE) has been authorized as the Nodal Agency for development of offshore wind energy in the country and to carry out allocation of offshore wind energy blocks, coordination and allied functions with related ministries and agencies. The policy will help the country move forward towards attaining energy security.

Under the policy, there will be an energy mapping of the country, while locating potential sites for offshore wind energy will be identified. The approval paves way for offshore wind energy development including, setting up of offshore wind power projects and research and development activities, in waters, in or adjacent to the country, up to the seaward distance of 200 Nautical Miles (EEZ of the country) from the base line. Union Power and New and Renewable Energy Minister Piyush Goyal has said that with the help of auctioning sites for erecting power generation units, the government would attract private players. Besides, the government will also take sub-approvals from defence, space and shipping ministry before going in for auction. Thus with auction more private players will be attracted and thereby reduce the cost.

With the introduction of the National Offshore Wind Energy Policy, the Government is attempting to replicate the success of the onshore wind power development in the offshore wind power development. Meanwhile, the policy will provide equal opportunities to all investors/beneficiaries, domestic and international and also will be applicable throughout the country depending upon offshore wind potential availability.

The minister has further said that “we have assessed the capacity of offshore wind power. There is a potential of generating 1, 06,000 MW power through offshore wind source on from Gujarat's coastline alone, while 60,000 MWs on Tamil Nadu's coastline. The preliminary assessments along the 7,600 km long Indian coastline have indicated prospects of development of offshore wind power.” Currently, a 50 megawatt (MW) power generation unit is being setup in the country on experimental basis.

The CNX Nifty is currently trading at 7713.60, down by 105.00 points or 1.34% after trading in a range of 7678.50 and 7729.05. There were 4 stocks advancing against 46 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.54%, TCS up by 0.63%, Tata Power up by 0.51% and ITC up by 0.17%. On the flip side, Hindalco down by 4.45%, Bank of Baroda down by 3.85%, Power Grid down by 3.73%, Kotak Mahindra Bank down by 3.07% and PNB down by 3.06% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 548.71 points or 2.92% to 18,221.80, Hang Seng decreased 397.4 points or 1.8% to 21,733.91, Straits Times decreased 35.96 points or 1.23% to 2,892.22, Jakarta Composite decreased 19.14 points or 0.44% to 4,328.14, Taiwan Weighted decreased 18.24 points or 0.22% to 8,268.68, Shanghai Composite decreased 6.47 points or 0.2% to 3,236.62 and FTSE Bursa Malaysia KLCI decreased 3.88 points or 0.24% to 1,599.48, while KOSPI Index increased 27.91 points or 1.44% to 1,962.11.