Markets continue to trade lackluster in absence of positive trigger

Local equity markets after slipping into negative territory continued to show lackluster trade in absence of buying activity, which led Sensex and Nifty oscillate in a narrow range around 25,800 and 7,800 levels respectively. Sentiments remained downbeat on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 492.45 crore yesterday as per provisional data released by the stock exchanges. Depreciation in Indian rupee too dampened sentiments. The rupee depreciated by 14 paise to 66.17 against the dollar at the Interbank Foreign Exchange in early trade today on buying of the US currency by importers.

On the global front, Asian markets were cautious as another bomb scare in Europe days after the deadly Paris attacks left investors in a contemplative mood, giving a boost to safe-haven US bonds and the dollar. Back home, metal shares have extended losses due to fall in commodity prices across the globe. However, shares of aviation companies were trading higher, erasing their early morning losses, after Jet Airways, IndiGo and SpiceJet said they would pursue legal steps against Competition Commission of India (CCI) order imposing penalties totalling Rs 258 crore on them for anti-competitive practices related to air cargo. The broader indices were trading in green at this point of time, while the market breadth on the BSE was positive; there were 1,257 shares on the gaining side against 1,104 shares on the losing side while 159 shares remain unchanged.

The BSE Sensex is currently trading at 25778.60, down by 85.87 points or 0.33% after trading in a range of 25764.96 and 25890.36. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.10%, while Small cap index up by 0.25%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.10%, Power up by 0.79%, Capital Goods up by 0.56%, Realty up by 0.49% and Oil & Gas up by 0.20%, while IT down by 1.43%, TECK down by 0.93%, Metal down by 0.27%, Bankex down by 0.25% and Healthcare down by 0.06% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.89%, Coal India up by 1.75%, Bharti Airtel up by 1.73%, GAIL India up by 1.58% and Larsen & Toubro up by 0.81%. On the flip side, Hindalco down by 2.78%, Infosys down by 2.73%, Vedanta down by 1.90%, Tata Steel down by 1.90% and Dr. Reddys Lab down by 1.69% were the top losers.

Meanwhile, Finance Minister Arun Jaitley has invited investments from the Abu Dhabi Investment Authority (ADIA) in National Infrastructure and Investment Fund (NIIF), assuring that it will attract good returns. He said that “It’s a great opportunity for the UAE sovereign wealth funds and pension funds to make best use of NIIF and make big investments in India”.

Jaitley met HE Sheikh Hamed Bin Jayed AL Nahyan, Managing Director, ADIA and Chairman, Abu Dhabi Crown Prince Court HE Sheikh Nahyan and highlighted the various initiatives taken by the present government in the last one-and-a-half year for enhancing foreign direct investment (FDI) in the country. Jaitley later informed that ADIA has shown keen interest in making investment on NIIF and its officials will be visiting India on 19th of this month in order to discuss this matter further. He also said that ADIA is also interested in investing for establishing strategic oil reserves at Mangalore Port in Karnataka.

In July, the government approved the creation of the NIIF with a corpus of Rs.20,000 crore for development of infrastructure projects, including the stalled ones. It decided last week that a governing council headed by the finance minister will oversee the activities of the NIIF. Jaitley is the chairman of the six-member council, while the economic affairs secretary functions as the council's secretary.

The CNX Nifty is currently trading at 7809.80, down by 27.75 points or 0.35% after trading in a range of 7808.80 and 7843.40. There were 20 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 2.44%, NTPC up by 1.93%, Coal India up by 1.93%, Bharti Airtel up by 1.88% and GAIL India up by 1.68%. On the flip side, Hindalco down by 2.91%, Infosys down by 2.67%, Vedanta down by 2.06%, Dr. Reddys Lab down by 1.91% and Tata Steel down by 1.90% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted decreased 78.95 points or 0.94% to 8,340.47, Hang Seng slipped 30.32 points or 0.14% to 22,233.93, Shanghai Composite shed 20.66 points or 0.57% to 3,584.13, FTSE Bursa Malaysia KLCI dipped 2.21 points or 0.13% to 1,659.32 and KOSPI Index was down by 0.7 points or 0.04% to 1,962.88.