Benchmarks continue to trade in red in late morning session

Indian bourses continued to trade in red in late morning session as funds and retail investors engaged in reducing positions amid a weak trend in Asian markets. Sentiments remained subdued after India's retail inflation based on the consumer price index (CPI) for September increased to 4.41%, from 3.74% recorded for the previous month, on the back of higher food prices. Depreciation in Indian rupee too dampened the sentiments. Rupee declined by 17 paise to 64.92 against the dollar in early trade on increased demand for the US currency from importers. However, the downfall is arrested owing better-than-expected August IIP numbers. Industrial Production grew by 6.4% for the month of August, an improvement over the 4.1% growth registered in the month of July and 0.5% growth in August last year. Some support also came with the report that Centre and States have completed the drafting of model Goods and Services Tax law as well as an integrated-GST or iGST law, which will be put up in public domain by early November and the Empowered Committee of state Finance Ministers is likely to meet this month to discuss the legislations -- CGST, SGST and iGST. Meanwhile, shares of upstream companies decline, while downstream and aviation stocks were trading higher after Oil futures settled sharply lower Monday as data showed members of the OPEC continued to pump at a breakneck pace last month. Furthermore, shares of Consumer durables companies were trading higher after the sector registered a growth of 17 percent compared with a contraction of 15 percent in August 2014, while the consumer goods sector recorded a growth of 6.8 percent as against a contraction of 6.2 percent in August last year.

On the global front, Asian markets trading mostly in red on Tuesday as China's trade data showed a larger-than-expected slide in imports, deepening concerns about slowdown in the world's second-largest economy. Oil prices tumbled on Monday as traders took profits after last week's surge to an 11-week high, and on a report that OPEC continued to boost crude production despite a persistent glut. On the other hand, U.S. stocks edged higher Monday ahead of a busy week for corporate earnings. Health-care stocks pushed the Dow Jones Industrials higher and to its longest winning streak in almost a year.

Back on street, stocks from Realty, Capital Goods and Power counters were supporting the markets’ uptrend, while those from TECK, IT and Metal counters were adding to the underlying cautious undertone. In scrip specific development, Shares of Cox & Kings have surged after the company acquired UK-based hotel booking website LateRooms.com from travel major TUI Group for GBP 8.5 million (around Rs 85 crore). Further, PTC India has gained after the company signed a memorandum of understanding (MoU) with Solar Energy Corporation of India (SECI) for the sale and purchase of power generated from 3,000 MW of solar projects.

The market breadth on BSE was positive, out of 2153 stocks traded, 1202 stocks advanced, while 863 stocks declined on the BSE. 

The BSE Sensex is currently trading at 26836.48, down by 67.63 points or 0.25% after trading in a range of 26787.66 and 26918.52. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.16%, while Small cap index up by 0.46%.

The top gaining sectoral indices on the BSE were Realty up by 0.72%, Capital Goods up by 0.54%, Power up by 0.42%, Consumer Durables up by 0.28% and Auto up by 0.23%, while TECK down by 1.01%, IT down by 1.00%, Metal down by 0.92%, Oil & Gas down by 0.38% and PSU down by 0.12% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 1.75%, Wipro up by 1.15%, BHEL up by 1.07%, Mahindra & Mahindra up by 0.88% and Coal India up by 0.85%. On the flip side, Hindalco down by 3.78%, Vedanta down by 3.56%, ONGC down by 3.21%, Tata Steel down by 2.53% and Infosys down by 2.07% were the top losers.

Meanwhile, Union Minister Nitin Gadkari has said that India’s growth in the highways sector is set to boost on the back of a quick and transparent decision making process coupled with decentralized power structure and a system of performance audit adding that it will go a long way in ensuring that the departments are able to achieve the development work that they set out to do.

The Ministry of Road Transport and Highways has acquired International Organisation for Standardisation (ISO) 9001-2008 for monitoring, planning, development and maintenance of highways infrastructure and road transport throughout the country. In order to get the ISO certificate, the Ministry developed its Quality Manual and Standard Operating Procedures in accordance with the requirements of ISO standards. After the internal audit by the Ministry, the certificating body appointed by Quality Council of India conducted two stages of audit and found the quality management system of the Ministry for performing its services to the citizens of India in accordance with the ISO standards.

Gadkari further highlighted that the importance of administrative efficiency as most vital factor for the successful working of an organization. The ISO certificate will be applicable to all the wings of the Ministry at the headquarters at New Delhi, including the offices of the Union Minister and the Minister of State, covering more than 700 employees. Ministry of Road Transport and Highways is probably the first largest Ministry of Government of India to achieve this feat.

The CNX Nifty is currently trading at 8127.95, down by 15.65 points or 0.19% after trading in a range of 8111.40 and 8150.25. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 1.97%, BPCL up by 1.65%, Ultratech Cement up by 1.34%, Yes Bank up by 1.23% and BHEL up by 1.05%. On the flip side, Hindalco down by 3.72%, Vedanta down by 3.70%, ONGC down by 3.32%, HCL Tech. down by 2.81% and Tata Steel down by 2.43% were the top losers.

Asian markets were trading mostly in red, Nikkei 225 was down by 1.08%, Hang Seng down by 0.49%, Jakarta Composite down by 2.96%, Taiwan Weighted down by 0.34%, Shanghai Composite down by 0.3% and KOSPI Index was down by 0.29%. On the flip side, FTSE Bursa Malaysia KLCI was up by 0.07%.