Benchmarks continue to trade in red in early noon session

Indian equity benchmarks continued their weak trade in the early noon session on account of sustained capital outflows by foreign funds and selling by retail investors. Besides, sentiment remained weak as participants indulged in offloading their positions, tracking a weak trend in Asian region following overnight losses in the US market as investors grappled with weakness in overseas equity markets and another drop in oil prices. Sentiments remained dented with the report that Indian economy is expected to grow at 7.9 per cent in the fiscal starting April, lower than earlier forecast of 8.1 per cent, due to intensifying global headwinds. In addition, weakness in the Indian rupee against the American currency too weighed on the sentiment. Traders were seen piling position in IT and TECk stocks, while selling was witnessed in Realty, Bankex, Metal, PSU and Auto sector stocks.

On the global front, Asian markets were trading sharply lower on concerns over health of the banking sector in the euro zone. Back home, the broader markets were underperforming the larger peers with BSE Mid-cap and Small-cap indices trading down by 0.99% and 1.22%, respectively. In scrip specifc development, shares of Ramco Industries were trading higher after the company's consolidated net profit for the quarter ended December 2015 surged 335% to Rs 35.2 crore compared with Rs 8.1 crore in the same quarter ended December 2014. On the flip side, Dr Reddy’s Labs was trading down after the company posted a marginal increase in consolidated net profit at Rs 579.2 crore for the third quarter ended December 31, hit by weak sales in the emerging markets like Russia, CIS nations and Romania.

The market breadth on BSE was negative, out of 2321 stocks traded, 483 stocks advanced, while 1741 stocks declined on the BSE.

The BSE Sensex is currently trading at 23841.87, down by 179.11 points or 0.75% after trading in a range of 23743.79 and 23938.32. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.99%, while Small cap index down by 1.22%.

The top gaining sectoral indices on the BSE were IT up by 0.44% and TECK up by 0.23%, while Realty down by 3.27%, Bankex down by 1.75%, Metal down by 1.68%, PSU down by 1.67% and Auto down by 1.23% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.14%, Sun Pharma Inds. up by 1.09% and Reliance Industries up by 1.01%. On the flip side, Adani Ports &Special down by 3.71%, Tata Motors down by 3.46%, Dr. Reddys Lab down by 3.16%, ICICI Bank down by 2.46% and Tata Steel down by 2.27% were the top losers.

Meanwhile, The Ministry of Coal has given its approval to grant a short-term coal linkage to central and state public sector units which have been allotted Schedule III coal mines. The bridge linkage will be given to both power and non-power sector public sector units. The bridge linkage will fill the gap of coal requirement of the specified end use plant till the allotted coal mine starts production. Under the Coal Mines Act, Schedule III coal mines are those which require some work or clearances before they start to produce. About 21 Schedule III coal mines were allotted to 18 central and state public sector units.

With approval of the Competent Authority, the bridge linkage will be granted for a fixed period of three years from the date of allotment of the coal mine and no further extension thereafter will be entertained under normal circumstances. The shorter duration shall act as an incentive for allottees to expedite production from the coal mines.

Further, specified end use plants which have been allotted coal mines/ blocks under 'Allotment' route to Central and State PSUs only shall be eligible for grant of 'Bridge Linkage'. No 'Bridge Linkage' shall be provided to specified end use plants of private sector which have won coal mines/ blocks after bidding under auction route since it would amount to change in bid conditions of coal mines/ blocks and there was no such condition to provide tapering linkages in bidding documents of coal mines/ blocks auctioned.

Every plant, which wants a bridge linkage, will need to apply to the Ministry of Coal. The request will be considered by the Standing Linkage Committee (Long Term) and thereafter Coal India or Singareni Collieries Company shall decide the grate of coal and source of coal.

The CNX Nifty is currently trading at 7238.60, down by 59.60 points or 0.82% after trading in a range of 7213.50 and 7271.85. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were HCL up by 1.91%, Infosys up by 1.30%, Sun Pharma up by 1.17%, Reliance Industries up by 0.91% and Ultratech Cement up by 0.87%. On the flip side, PNB down by 5.93%, Cairn India down by 5.60%, Bank of Baroda down by 5.55%, Hindalco down by 5.36% and Vedanta down by 4.59% were the top losers.

Asian markets were trading in red; Nikkei 225 decreased 512.31 points or 3.18% to 15,573.13, Jakarta Composite decreased 32.71 points or 0.69% to 4,735.91 and FTSE Bursa Malaysia KLCI decreased 12.12 points or 0.73% to 1,650.34.