Markets continue to trade sluggish in early noon session

Markets continued to show a sluggish trend in the early noon session, on account of selling in frontline blue chips counters amid weak global cues, after  Asian stocks held near four-year lows since investors were worried over the extent of China's economic slowdown and its impact on emerging markets. Meanwhile, US crude tumbled below $31 a barrel on Tuesday, extending a sell-off that has sent the commodity to more than 12-year lows. Some cautiousness also prevailed in the markets ahead of key economic data -- industrial production (IIP) numbers for November and inflation to be released later in the day.

In scrip specific development, share of Larsen & Toubro (L&T) was trading higher after the company’s construction arm has won orders worth Rs 1,247 crore in the building & factories and power transmission & distribution businesses. At present, both sensex and Nifty were trading below their crucial 24,750 and 7,550 levels respectively.

The broader indices were trading in green and red; the BSE Mid cap index was down by 0.15%, while Small cap index up by 0.09%.

The gaining sectoral indices on the BSE were Capital Goods up by 1.01%, Power up by 0.61% and Consumer Durables up by 0.32%, while, TECK down by 1.03%, Bankex down by 1.01%, IT down by 0.99%, Realty down by 0.71% and Metal down by 0.40% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.80%, Larsen & Toubro up by 1.77%, Adani Ports &Special up by 1.39%, BHEL up by 1.04% and GAIL India up by 0.65%. On the flip side, ONGC down by 2.45%, Axis Bank down by 2.24%, Bharti Airtel down by 1.38%, Tata Motors down by 1.37% and Hero MotoCorp down by 1.32% were the top losers.

Meanwhile, India Inc has raised over $3.16 billion from overseas markets in November 2015 down 9.5 per cent from a year ago, according to RBI data. Of the total borrowings, by way of external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), $2.11 billion was raised through the approval process while $1.05 billion came through the automatic route.

Out of the total 57 borrowers, four raised the money through approval route, while the rest by way of automatic route. Through approval route, ONGC Videsh raised $1.78 billion for refinancing of an earlier ECB, Rural Electrification Corporation raised $300 million for on lending, Perkins India Private mobilized $34 million for working capital.

Among major borrowers in the automatic route, Railway Finance Corporation raised $400 million for refinancing of an earlier ECB, Power Finance Corporation raised $360 million for on-lending. Adani Hazira Port mopped up $80 million for port-related activity and Inbisco India $18.8 million for refinancing ECB and Vacmet India raised $16.36 million for import of capital goods.

The CNX Nifty is currently trading at 7528.95, down by 34.90 points or 0.46% after trading in a range of 7508.80 and 7588.30. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 1.85%, NTPC up by 1.84%, Adani Ports &Special up by 1.54%, BHEL up by 1.41% and BPCL up by 0.84%. On the flip side, Axis Bank down by 2.16%, ONGC down by 2.13%, Ultratech Cement down by 2.00%, Yes Bank down by 1.94% and Cairn India down by 1.80% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 493.84 points or 2.79% to 17,204.12, Hang Seng decreased 74.27 points or 0.37% to 19,814.23, Taiwan Weighted decreased 19.97 points or 0.26% to 7,768.45 and KOSPI Index decreased 3.67 points or 0.19% to 1,891.17, while FTSE Bursa Malaysia KLCI increased 7.91 points or 0.48% to 1,645.50, Shanghai Composite increased 18.42 points or 0.61% to 3,035.13 and Jakarta Composite increased 53.05 points or 1.19% to 4,518.54.