Benchmarks continue weak trade; FMCG, Consumer Durables drag

Indian equity markets trimmed their losses but continued to trade in red in the late afternoon session on account of selling in frontline blue chip counters tracking Asian markets. Sentiments remained down-beat on the report that India’s services activity barely expanded marking its slowest pace in five months. The Nikkei/Markit Services Purchasing Managers’ Index (PMI) fell sharply to 50.1 in November from October’s eight-month high of 53.2. Besides, depreciation in Indian rupee against dollar also weighed down sentiments. Indian rupee slipped to 66.76 per dollar on Thursday versus its previous close of 66.59, tracking the surge in the greenback, which hit a 12-year high against a basket of six currencies. However, investors got some support with the report that Cabinet has given ex-post-facto approval to the easing of foreign direct investment (FDI) policy in 15 sectors that was approved by the Prime Minister Narendra Modi last month.

On the global front, most of Asian markets were trading in red as investors turned cautious after hawkish comments from Federal Reserve Chair Janet Yellen reinforced the case for an interest rate hike later this month. On the other hand, European shares were trading higher as investors await the latest rate decision – and possibly more stimulus – from the European Central Bank (ECB). Back home, traders were seen piling up position in Realty, Power and Oil & Gas stocks while selling was witnessed in FMCG, Consumer Durables and Metal sector stocks. In scrip specific development, shares of TV Today Networks gained after Reserve Bank of India has notified that Non Resident Indians (NRIs) can now invest up to 24 per cent of the paid up capital of TV Today Networks under the Portfolio Investment Scheme (PIS). Furthermore, Amtek Auto has rallied on reports that Bharat Forge said to be weighing bids for the company’s assets.

The BSE Sensex is currently trading at 26025.90, down by 91.95 points or 0.35% after trading in a range of 25937.99 and 26123.86. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.08%, while Small cap index up by 0.09%.

The top gaining sectoral indices on the BSE were Realty up by 0.80%, Power up by 0.25%, Oil & Gas up by 0.12% and Bankex up by 0.01%, while FMCG down by 0.95%, Consumer Durables down by 0.62%, Metal down by 0.55%, Auto down by 0.40% and PSU down by 0.24% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.16%, Axis Bank up by 1.07%, Reliance Industries up by 0.66%, Hindalco up by 0.44% and GAIL India up by 0.39%. On the flip side, Lupin down by 1.96%, BHEL down by 1.59%, ONGC down by 1.57%, Mahindra & Mahindra down by 1.35% and Cipla down by 1.30% were the top losers.

Meanwhile, the national Intellectual Property Rights (IPR) policy being prepared by government will help India become an innovative economy over the next 10 years. Secretary in the Department of Industrial Policy and Promotion (DIPP) Amitabh Kant further elaborating said that recognising the need to scale up the process of IP creation and increase commercialisation of the technology, the government has embarked on the process of preparing a national IPR Policy and it has been formulated with a mission to foster innovation, accelerate economic growth, employment and entrepreneurship besides protecting public health, food security and environment.

Kant said that there is a need to improve the level of IP awareness across all sectors and it is critical that the need for IP creation and protection percolates down across industries, institutions and PSUs. However, he added that it is important to have an innovative ecosystem which supports translation of inventions into commercial use. This ecosystem can only be created and nurtured through initiatives of the government in collaboration with industry. He also said that the government has taken several measures to improve the delivery of services provided by IP office such as processing of IP applications.

IPR is widely recognised as a key component for a company's growth and in improving its competitiveness. A draft policy is in the public domain, which seeks to encourage innovation by providing tax incentives and modifying intellectual property rights.

The CNX Nifty is currently trading at 7900.50, down by 30.85 points or 0.39% after trading in a range of 7878.35 and 7912.30. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 1.42%, NTPC up by 1.16%, Axis Bank up by 0.98%, Yes Bank up by 0.93% and Tech Mahindra up by 0.64%. On the flip side, Lupin down by 1.94%, BHEL down by 1.76%, ONGC down by 1.57%, Cipla down by 1.54% and Mahindra & Mahindra down by 1.48% were the top losers.

Asian markets were trading mostly in red, Hang Seng was down by 0.28%, KOSPI Index down by 0.76%, Taiwan Weighted was down by 0.02%, Jakarta Composite down by 0.19% and FTSE Bursa Malaysia KLCI was down by 0.13%. On the flip side, Nikkei 225 was up by 0.01% and Shanghai Composite was up by 0.59%.

European markets were trading in green; Germany’s DAX was up by 0.36%, France’s CAC up by 0.48% and UK’s FTSE 100 was up by 0.07%.