Markets continue to trade lower in early noon session

Indian equity benchmarks continue to trade red in early noon session on the back of continued selling, taking cues from weak Asian markets following overnight losses at the US markets ahead of a policy statement from the Federal Reserve. Besides, caution ahead of expiry of October month contracts in the derivatives segment tomorrow also influenced the trading sentiment. Depreciation in the rupee too dampened the sentiment. The rupee weakened by 8 paise to 65.45 against the dollar in early trade due to month-end demand for the US currency from importers. However, some downside were capped with report that India now ranks 130 out of 189 countries in the ease of doing business, moving up 12 places from last year. At present, Sensex and Nifty were trading below the crucial 27,150 and 8,200 levels respectively.

In scrip specific development, share of Lupin continued to trade lower, down by 1.73%, after the company reported 35% year on year (YoY) decline in its consolidated net profit at Rs 409 crore for the quarter ended September 30, 2015 (Q2FY16), due to single digit growth in net sales and lower other income. Thermax has dipped 4.95% after the company reported 25% year on year (YoY) drop in standalone net profit at Rs 65 crore for the second quarter ended September 30, 2015 (Q2) due to lower operational income.

The market breadth on BSE was positive, out of 2401 stocks traded, 1180 stocks advanced, while 1078 stocks declined on the BSE.

The BSE Sensex is currently trading at 27110.43, down by 143.01 points or 0.52% after trading in a range of 27087.81 and 27163.98. There were 13 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.03%, while Small cap index gained 0.37%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.82%, FMCG up by 0.28%, TECK up by 0.22% and IT up by 0.13%, while Bankex down by 1.42%, PSU down by 0.67%, Power down by 0.66%, Oil & Gas down by 0.61% and Realty down by 0.43% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.29%, Vedanta up by 1.24%, HDFC Bank up by 0.85%, Maruti Suzuki up by 0.71% and Tata Steel up by 0.55%. On the flip side, Axis Bank down by 6.15%, ICICI Bank down by 3.08%, Dr. Reddys Lab down by 1.90%, Lupin down by 1.67% and SBI down by 1.47% were the top losers.

Meanwhile, India Inc has raised $2.61 billion from overseas markets in September 2015 down by 32 percent compared to that of $3.18 billion raised in corresponding year ago period, according to RBI data. However, the amount borrowed by Indian firms from overseas markets in August 2015 was much lower at $750.77 million.

Out of the total 56 borrowers, two raised $1.48 billion through approval route, while the rest via automatic route.  Global Vectra Helicorp raised $8.7 million for Import of Capital Goods, while Reliance Industries raised $1.47 billion for refinancing of earlier ECBs through approval route.

Among major borrowers through automatic route, Hindustan Petroleum Corporation and Rural Electrification Corporation raised $250million for modernization and refinancing of earlier ECBs respectively. Further, MCC PTA India Corp raised $170 million for general corporate purpose, Idea celluar raised $71.06 million for refinancing of earlier ECBs.

The CNX Nifty is currently trading at 8196.50, down by 36.40 points or 0.44% after trading in a range of 8181.00 and 8209.10. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 2.04%, Bharti Airtel up by 1.33%, Tech Mahindra up by 1.33%, Vedanta up by 1.29% and ACC up by 0.96%. On the flip side, Axis Bank down by 6.31%, ICICI Bank down by 3.03%, Adani Ports &Special down by 2.31%, Cairn India down by 2.18% and Dr. Reddys Lab down by 1.85% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 141.68 points or 0.61% to 23,001.05, Jakarta Composite decreased 72.95 points or 1.56% to 4,601.11, Taiwan Weighted decreased 35.33 points or 0.41% to 8,665.99, Shanghai Composite decreased 34.39 points or 1% to 3,399.94, FTSE Bursa Malaysia KLCI decreased 10 points or 0.59% to 1,686.95 and KOSPI Index decreased 2.39 points or 0.12% to 2,042.26, while Nikkei 225 increased 114.08 points or 0.61% to 18,891.12.