Markets pare some losses but continue to trade in red

Indian equity benchmarks have pared most of their early losses but continue to trade in red in the early noon deals weak global cues. Besides persistent capital outflows by foreign funds and a plunge in Chinese factory activity stoked fresh fears about the health of the world’s second-largest economy and the global outlook, which soured mood. The market is likely to remain volatile as traders will roll over positions in the Futures & Options (F&O) segment from the near month i.e. September 2015 series to next month i.e. October 2015 series. Losses also remained capped after Finance Minister Arun Jaitley said that we have learnt to live in the era of turmoils and the government is focussing on strengthening the country's real economy and harnessing its true growth potential of 8-9 per cent.

In scrip specific development, share of Visa Steel was trading higher up by 16.34% after lenders of the company decided to invoke Strategic Debt Restructuring pursuant to RBI Circular dated 8 June 2015. Mindtree was trading up by 1.23% after the company launched Global Learning and Software Delivery Center in Bhubaneshwar.  At present, both Sensex and Nifty were trading above psychologically crucial 25,600 and 7,750 levels respectively,
 
The BSE Sensex is currently trading at 25611.97, down by 39.87 points or 0.16% after trading in a range of 25386.48 and 25613.32. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.37%, while Small cap index was up by 0.05%.

The gaining sectoral indices on the BSE were Realty up by 0.63% and FMCG up by 0.29%,while Auto down by 0.79%, Metal down by 0.49%, Capital Goods down by 0.46%, TECK down by 0.46%, INFRA down by 0.41% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.45%, ITC up by 1.33%, Mahindra & Mahindra up by 1.03%, Coal India up by 0.80% and Vedanta up by 0.70%. On the flip side, Tata Motors down by 2.06%, Bajaj Auto down by 1.80%, Wipro down by 1.70%, Tata Steel down by 1.41% and GAIL India down by 1.38% were the top losers.

Meanwhile, finance Minister Arun Jaitley has expressed his confidence that India would sail through global turmoils without much adverse impact. Jaitley said that 'I am one of those who believe that we have learnt to live in the era of turmoils. Whether it was Greece crisis, or China devaluation or speculations about rate hike by the US Fed. Every day, something or the other impacts the market. As policy planners, we cannot really hedge our bets (on these factors)'. He added that impact on the market does create an optical impression of some kind of a turmoil,' and the policy makers should not be perturbed by such transient factors.

Jaitley in the second leg of his four-day visit to Singapore and Hong Kong, said that India is one of the fastest growing economies in the world and certainly it can't be amid any disappointment or disillusion. He added that the world has become an uncertain place because traditionally strong economies are facing their own challenges and everyone will have to live up to a situation where many unpredictable things can happen.

Though, he admitted that there would certainly have been an impact if the US central bank had raised the rates. He further stated that markets will keep moving up and down. Even if change had taken place in the Fed rate, the market would have been impacted for some period of time and then would have stabilised.

Talking about the government measures he said that there have been a series of reforms. The government has become far more decisive. There is a lot of economic activity that is happening and even in the midst of the global economic slowdown, our figures are much better. There is a lot of excitement that the investment people now have. The FDI inflows have significantly improved and investors are looking at different sectors in India, including infrastructure, smart cities, manufacturing sectors and services. Public investments have gone up significantly by about 39% and FDI this year has improved by 49% from the previous year.

The CNX Nifty is currently trading at 7776.65, down by 35.35 points or 0.45% after trading in a range of 7723.25 and 7786.50. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Cairn India up by 1.62%, NTPC up by 1.28%, ITC up by 1.27%, Mahindra & Mahindra up by 1.06% and Coal India up by 0.96%. On the flip side, Bosch down by 4.18%, NMDC down by 3.47%, Zee Entertainment down by 2.85%, Power Grid Corpn. down by 2.10% and Tata Motors down by 2.06% were the top losers.

Asian markets were trading in red; Hang Seng decreased 633.76 points or 2.91% to 21,162.82, Nikkei 225 decreased 362.06 points or 1.96% to 18,070.21, Taiwan Weighted decreased 172.5 points or 2.06% to 8,193.42, Jakarta Composite decreased 78.35 points or 1.8% to 4,265.69, Shanghai Composite decreased 55.72 points or 1.75% to 3,129.90, KOSPI Index decreased 37.42 points or 1.89% to 1,944.64, Straits Times decreased 33.62 points or 1.17% to 2,834.85 and FTSE Bursa Malaysia KLCI decreased 21.4 points or 1.31% to 1,613.97.