Benchmarks continue to trade weak amid weak global cues

Indian equity benchmarks continue to trade in deep red in early noon session, on sustained selling by funds and retail investors amid weak global cues. Sentiment turned down-beat after the rupee slumped to an over two-year low on Friday, tracking weakness in global markets after the European Central Bank's stimulus package fell short of expectations and renewed fears of a US rate hike. The rupee dropped by 19 paise to 66.85 against the US dollar in early noon trade. Also, Janet Yellen’s hawkish stance on the US economy reinforced the case for an interest rate hike in December 2015 would weigh on the sentiment across the bourses. At present, Sensex and Nifty were trading below the crucial 25,700 and 7,800 levels respectively.

On the global front, Asian markets were trading in red as investors digested comments from the Fed and the European Central Bank (ECB). Back home, the broader markets were underperforming the larger peers with BSE Mid-cap and Small-cap indices trading down by 0.55% and 0.23%, respectively. The market breadth on BSE was negative, out of 2413 stocks traded, 999 stocks advanced, while 1263 stocks declined on the BSE.

In scrip specific development, share of Ujaas Energy was trading up by 4.67% after the company bagged EPC order of 10MW Canal Bank Grid Connected Solar Photovoltaic Power Plant at Vadodara, Gujrat and its operation and maintenance for 25 years as issued by Sardar Darovar Narmada Nigam. Sun Pharmaceutical was trading higher after the company’s subsidiary received final approval from US FDA for its Abbreviated New Drug Application (ANDA) for generic version of Gleevec, Imatinib Mesylate tablets 100mg and 400mg. These tablets are indicated for the treatment of chronic myeloid leukemia.

The BSE Sensex is currently trading at 25696.00, down by 190.62 points or 0.74% after trading in a range of 25644.35 and 25810.06. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.55%, while Small cap index was lower by 0.22%.

The lone gaining sectoral index on the BSE was Metal up by 0.47%, while IT down by 1.01%, TECK down by 0.94%, Bankex down by 0.91%, FMCG down by 0.89% and Realty down by 0.69% were the losing indices on BSE.

The top gainers on the Sensex were Sun Pharma Inds. up by 4.01%, Tata Steel up by 1.06%, Tata Motors up by 0.88%, Coal India up by 0.37% and Bharti Airtel up by 0.31%. On the flip side, Mahindra & Mahindra down by 2.17%, HDFC down by 1.87%, Wipro down by 1.52%, ITC down by 1.37% and NTPC down by 1.31% were the top losers.

Meanwhile, amid governments' all out effort of increasing ease of doing business in the country, and an ambitious bilateral trade target of $500 billion with US. The US Ambassador Richard Verma has said that problems related to ease of doing business such as taxation, regulatory burdens and legal issues can deter American investors from investing in India.

He said that on the trade and investment front, we have been taking up the ease of doing business factors that sometimes can deter the US companies and investors such as tax and legal certainty and easing regulatory burdens. He added that 'I think we are making progress in that regard and it's not just US companies that are voicing those concerns, it is also Indian companies who are coming together and voicing similar concerns.”

Verma said that in the last Trade Policy Forum meeting, both sides discussed in detail the trade relationships with the goal of continuing to break down trade barriers and laying the foundation for reaching the trade target of $ 500 billion. In 2005, the two-way trade between the countries was about $ 35 billion, which exceeded to $105 billion last year, but it's still the pockets compared to the size of our economy and the number of people we trade with.

He further added that in 2005, there were 200 US companies in India and now there are over 500, employing several million people. Agriculture trade between the two countries too has increased to $ 7 billion from $ 1.5 billion in 2005.

The CNX Nifty is currently trading at 7799.70, down by 64.45 points or 0.82% after trading in a range of 7784.80 and 7819.25. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Sun Pharma up by 4.01%, Cairn India up by 3.41%, Tata Steel up by 0.94%, Tata Motors up by 0.83% and Coal India up by 0.42%. On the flip side, Zee Entertainment down by 3.20%, Bank Of Baroda down by 2.31%, Mahindra & Mahindra down by 2.04%, Idea Cellular down by 1.89% and HDFC down by 1.84% were the top losers.

Asian markets were trading in red; Nikkei 225 decreased 475.74 points or 2.39% to 19,464.16, Hang Seng decreased 242.56 points or 1.08% to 22,174.45, Taiwan Weighted decreased 57.46 points or 0.68% to 8,398.60, Shanghai Composite decreased 47.23 points or 1.32% to 3,537.59, Jakarta Composite decreased 29.67 points or 0.65% to 4,507.71, KOSPI Index decreased 19.07 points or 0.96% to 1,975.00 and FTSE Bursa Malaysia KLCI decreased 5.48 points or 0.33% to 1,668.44.