Benchmarks continue weak trade in late morning session

Indian equity benchmarks continued their weak trade in the late morning session on account of sustained capital outflows by foreign funds and selling by retail investors. Investors maintained cautious approach as India’s economic growth for the third quarter of this financial year slowed to a four-quarter low at 7.3%, from the revised 7.7% of the previous quarter. The markets also experienced selling pressure after the rupee extended its fall for the third consecutive session. The rupee fell by 19 paise to 68.13 against the US dollar. The rupee has dropped 30 paise to settle at 67.94 on Monday amid relentless dollar demand from banks and importers on the back of a rise in the greenback. Traders were seen piling position in Oil & Gas and Power stocks while selling was witnessed in IT, TECK and Metal sector stocks. In scrip specific development, GlaxoSmithkline Consumer Healthcare was trading in green on registering a rise of 36.76% in its net profit at Rs 131.85 crore in Q3FY16 as compared to Rs 96.41 crore in the corresponding quarter previous year.

On the global front, the Asian markets were trading in red. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 7,300 and 24,000 levels respectively. The market breadth on BSE was negative in the ratio of 561:1461 while 68 scrips remained unchanged.

The BSE Sensex is currently trading at 23994.57, down by 292.85 points or 1.21% after trading in a range of 23919.47 and 24076.85. 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 1.16%, while Small cap index down by 1.02%.

The gaining sectoral indices on the BSE were Oil & Gas up by 0.56% and Power up by 0.35%, while IT down by 3.26%, TECK down by 2.85%, Metal down by 1.63%, Bankex down by 1.27% and Auto down by 0.86% were the losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 1.34%, Sun Pharma up by 1.18%, NTPC up by 1.01%, Hindustan Unilever up by 0.66% and ONGC up by 0.56%.

On the flip side, Infosys down by 3.71%, TCS down by 3.53%, Coal India down by 3.46%, Maruti Suzuki down by 2.52% and Cipla down by 2.03% were the top losers.

Meanwhile, India’s receipt from trade invisibles which include components such as - services, primary income and secondary income increased marginally to $59.74 billion in July-September quarter of current fiscal as compared to 59.37 billion during the corresponding quarter of 2014-15, according to Reserve Bank of India (RBI) data. The payments by India, due to these transactions, however, were down during the second quarter ended September of current fiscal at $30.53 billion, from $30.65 billion a year earlier.

Services includes Travel, transport, insurance, maintenance of Indian embassies and diplomatic mission abroad, remittances by foreign embassies and mission in India, telecommunications, computer and information and financial services, construction which in total stood at $38.75 billion from $38.36 the same quarter in 2014-15.

The primary income receipts stood at $3.91 billion during July - September 2015-16 as compared $3.51 billion same period a year ago. This includes compensation of employee, investment income and other primary income. The secondary income receipts component takes into account remittance by non-residents towards family maintenance and savings and personal gifts, donations to charitable and religious institutions, Gold and silver brought through passenger baggage. The receipts have stood at $17.08 billion in July- September quarter 2015-16 as against $17.5 billion in the same period last fiscal. The CNX Nifty is currently trading at 7296.65, down by 90.60 points or 1.23% after trading in a range of 7280.70 and 7319.70. There were 15 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.43%, GAIL India up by 1.41%, Sun Pharma up by 1.27%, NTPC up by 1.05% and ONGC up by 0.84%.

On the flip side, Tech Mahindra down by 4.19%, Infosys down by 3.95%, Coal India down by 3.74%, TCS down by 3.39% and PNB down by 3.13% were the top losers.

Asain markets were trading in red, Nikkei 225 decreased 915.63 points or 5.38% to 16,088.67 and Jakarta Composite decreased 44.52 points or 0.93% to 4,754.42.