Benchmarks continue weak trade; Metal, Oil & Gas drag

Indian equity markets continued their weak trade in the late afternoon session on account of selling in front line blue chip counters. The sentiments were under pressure following lingering concerns over GST. Traders were seen piling position in Power stocks while selling was witnessed in Metal, Oil & Gas and Auto sector stocks. In the scrip specific development, Dr. Reddy’s Laboratories was trading weak hovering near its 52-week low amid concerns of currency devaluation in the key market of Venezuela. Bharat Forge was trading in red after the forging company issued a cautious outlook for this fiscal. On the other hand, Electrosteel Steels was trading firm after the board of the Kolkata-based steelmaker approved an increase in share capital following lenders’ approval to convert debt of Rs 2,507 crore into equity shares.

On the global front, the Asian markets were trading mostly in red, while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 7,700 and 25,200 levels respectively. The market breadth on BSE was negative in the ratio of 556:2053 while 155 scrips remained unchanged.

The BSE Sensex is currently trading at 25186.11, down by 124.22 points or 0.49% after trading in a range of 25165.16 and 25316.95. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.97%, while Small cap index down by 1.55%.

The gaining sectoral indices on the BSE was Power up by 0.14%, while Metal down by 1.89%, Oil & Gas down by 1.25%, Auto down by 0.97%, Realty down by 0.71% and Capital Goods down by 0.69% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 3.55%, TCS up by 1.46%, NTPC up by 1.11%, ITC up by 0.89% and Hindustan Unilever up by 0.43%.

On the flip side, Vedanta down by 3.56%, Bharti Airtel down by 2.27%, Hindalco down by 2.24%, Dr. Reddy’s Lab down by 2.11% and Coal India down by 2.03% were the top losers.

Meanwhile, minister of state for Finance Jayant Sinha has said that the decline in the level of foreign portfolio investments (FPIs) flows may not have a significant macroeconomic impact as long as capital inflows remain enough to finance the current account deficit (CAD).

Sinha further said that the FPI through its impact on the cost of capital helps supplement domestic resources and thereby growth momentum. It also helps finance the level of current CAD and has implications for the exchange rate. However, a larger than required flow in either direction tends to impact exchange rate and hence to be modulated by the RBI through intervention.

During the first eight months of the current fiscal, foreign portfolio investments had pulled out a sum of Rs 7,008 crore from the country's capital markets after investing staggering funds in the preceding two financial years. In the year 2014-15, FPIs had made a net investment of Rs 2.77 lakh crore and Rs 51,649 crore in 2013-14.

The CNX Nifty is currently trading at 7663.90, down by 37.80 points or 0.49% after trading in a range of 7653.20 and 7702.85. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were BHEL up by 3.46%, TCS up by 1.76%, NTPC up by 1.15%, ITC up by 1.02% and Mahindra & Mahindra up by 0.81%.

On the flip side, Vedanta down by 3.73%, BPCL down by 2.65%, Hindalco down by 2.50%, Bharti Airtel down by 2.31% and Ambuja Cement down by 2.11% were the top losers.

The Asian markets were trading mostly in red; Nikkei 225 decreased 191.53 points or 0.98% to 19,301.07, Taiwan Weighted decreased 114.24 points or 1.37% to 8,229.62, Hang Seng decreased 101.37 points or 0.46% to 21,803.76, Jakarta Composite decreased 57.21 points or 1.27% to 4,464.18, FTSE Bursa Malaysia KLCI decreased 6.51 points or 0.39% to 1,662.73 and KOSPI Index decreased 0.8 points or 0.04% to 1,948.24.

On the other hand, Shanghai Composite increased 2.37 points or 0.07% to 3,472.44.

The European markets were trading in green; Germany’s DAX increased 4.29 points or 0.04% to 10,677.89, France’s CAC increased 20.67 points or 0.44% to 4,702.53 and UK’s FTSE 100 increased 23.39 points or 0.38% to 6,158.61.