Benchmarks continue weak trade in late afternoon session

Indian equity markets continued their weak trade in the late afternoon session on account of selling in front line blue chip counters taking cues from global counterparts. Investors overlooked the government’s Mid-year Economic Review authored by Chief Economic Advisor Arvind Subramanian who stated that the Indian economy is likely to grow at 7-7.5 percent in fiscal 2015-16 while retail inflation is expected at 6 percent. The report also reiterated it would meet its fiscal deficit target of 3.9 percent and revenue deficit target of 2.8 percent for this year. Traders were seen piling position in Consumer Durables, Power and Realty stocks while selling was witnessed in IT, TECK and Bankex sector stocks. In the scrip specific development, Take Solutions was trading under pressure after the company issued revenue warning over Chennai floods. Strides Shasun was trading firm after the company reportedly launched a share sale to raise up to Rs 1,500 crore.

On the global front, the Asian markets were trading in red, while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 7,850 and 25,700 levels respectively. The market breadth on BSE was positive in the ratio of 1315:1213 while 211 scrips remained unchanged.

The BSE Sensex is currently trading at 25670.52, down by 133.26 points or 0.52% after trading in a range of 25571.45 and 25789.51. There were 9 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.42%, while Small cap index up by 0.10%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.27%, Power up by 0.55%, Realty up by 0.39%, PSU up by 0.18% and Capital Goods up by 0.17%, while IT down by 0.85%, TECK down by 0.60%, Bankex down by 0.41%, Metal down by 0.41% and Oil & Gas down by 0.32% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.59%, Mahindra & Mahindra up by 0.59%, Hindustan Unilever up by 0.59%, Cipla up by 0.44% and Axis Bank up by 0.17%.

On the flip side, Bajaj Auto down by 1.84%, Vedanta down by 1.72%, Lupin down by 1.47%, Infosys down by 1.35% and Reliance Industries down by 1.10% were the top losers.

Meanwhile, in a bid to help enhance farmers' income and provide processed food products to consumers at affordable rates, the government is considering to frame a comprehensive policy for the food sector. Stressing on the need to further strengthen the linkage of the farms with the market and industry, Food Processing Minister Harsimrat Kaur Badal said “I think there should be a one comprehensive food policy, which encompasses policies for agriculture, distribution of food and food processing, that is the need of the hour and we are thinking on those lines”.

In order to help the farmers to raise their income levels, Badal emphasized upon the need to make agriculture a more profitable profession. She said the government plans to establish a task force to prepare a vision for the food processing sector by 2020. It is an ongoing process, the government wants to create such environment where farmers income level rises, promotes processing and at the same time, food products for consumers are available at affordable prices.

Badal further highlighted that government is taking steps to ease product approval system of food regulator FSSAI and working on a new mechanism where manufacturers may not need approval for their products if ingredients are cleared.

The CNX Nifty is currently trading at 7802.25, down by 42.10 points or 0.54% after trading in a range of 7774.55 and 7836.15. There were 15 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Tata Power up by 1.70%, NTPC up by 1.59%, Ambuja Cement up by 1.14%, Idea Cellular up by 1.05% and Adani Ports & Special Economic Zone up by 1.05%.

On the flip side, Ultratech Cement down by 2.62%, Bajaj Auto down by 2.23%, Vedanta down by 1.66%, IndusInd Bank down by 1.50% and Lupin down by 1.43% were the top losers.

The Asian markets were trading in red; Nikkei 225 decreased 366.76 points or 1.9% to 18,986.80, Hang Seng decreased 116.5 points or 0.53% to 21,755.56, Jakarta Composite decreased 79.06 points or 1.74% to 4,476.90, Taiwan Weighted decreased 62.35 points or 0.75% to 8,257.32, FTSE Bursa Malaysia KLCI decreased 10.44 points or 0.63% to 1,646.08, KOSPI Index decreased 2.64 points or 0.13% to 1,975.32 and Shanghai Composite decreased 1.03 points or 0.03% to 3,578.96.

The European markets were trading in red; Germany’s DAX decreased 50.73 points or 0.47% to 10,687.39, France’s CAC decreased 23.07 points or 0.49% to 4,654.47 and UK’s FTSE 100 decreased 1.66 points or 0.03% to 6,100.88.