Markets continue to trade in red on weak global cues

Indian equity benchmarks continued to trade in red in early noon session on the back of weak global cues as rising concerns over the health of European banks further threatened a global economic outlook already under strain from falling oil prices and slowdown in China and other emerging markets. Besides, caution also prevailed in the market ahead of the Index of Industrial Production (IIP) and Consumer Price Inflation (CPI) data due later today. Further, Foreign Institutional Investors (FIIs)'s shareholding in Indian companies dropped to lowest level in nearly three years at the end of the December quarter, too influenced the markets. However, losses were capped with the report of Economic Affairs Secretary Shaktikanta Das’ statement that the India’s economic growth is robust despite turmoil on global financial markets. He also said that the economy would grow by 7.6 per cent in the year to March. On the global front, Asian markets were trading mostly in red, as investors continued to dump riskier assets. Back home, both the Sensex and Nifty were trading below their crucial 22,850 and 7,000 levels, respectively. In scrip specific development, shares of SREI Infra were trading down after the company’s consolidated net profit declined by 27.25 percent to Rs 17.16 crore for the third quarter of 2015-16 fiscal.

The BSE Sensex is currently trading at 22818.65, down by 133.18 points or 0.58% after trading in a range of 22785.67 and 23116.27. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 2.00%, while Small cap index down by 2.81%.

The top gaining sectoral index on the BSE was Auto up by 0.01%, while Capital Goods down by 3.57%, Realty down by 3.45%, Oil & Gas down by 3.41%, Metal down by 2.77% and PSU down by 2.48% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 4.55%, Axis Bank up by 1.75%, HDFC up by 1.54%, NTPC up by 1.36% and Mahindra & Mahindra up by 0.98%. On the flip side, BHEL down by 11.34%, Adani Ports &Special down by 5.46%, Tata Steel down by 4.33%, Larsen & Toubro down by 3.87% and ONGC down by 3.65% were the top losers.

Meanwhile, in an encouraging development, India has signed wide-ranging set of seven agreements with UAE which includes cyber security, infrastructure investment and insurance after talks between Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayad Al Nahayan. Out of seven agreements, four were inked in presence of Modi and Al Nahyan. Another pact between Dubai Economic Council and Export Import Bank of India will be signed in Mumbai on Feb 12.

The MoUs signed will also provide for cooperation in areas of skill development, space and cultural exchanges. The major focus of the deliberation was expanding economic engagement, particularly in oil and renewable energy sector and increasing UAE's investment in India. Another pact was signed for creating a framework for facilitating participation of UAE's institutional investors in India's infrastructure sector while a separate agreement provides for cooperation in the insurance sector.

The agreement of cyber space will provide greater synergy between security agencies of the two countries to combat efforts to radicalise youths through online platforms besides checking activities of terror groups. The two leaders discussed on combating threat of terrorism including from ISIS, and explored ways to enhance bilateral cooperation in counter-terrorism, maritime security and defence.

A major focus of the three-day visit by the influential UAE leader is stepping up economic ties. Recently, UAE Ambassador Ahmed Al Banna has said that the agreements will lead to 'huge investment portfolio' in diverse areas including renewable energy, oil and gas and some other major sectors.

The CNX Nifty is currently trading at 6939.80, down by 36.55 points or 0.52% after trading in a range of 6919.70 and 7026.75. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 4.22%, Power Grid up by 2.38%, Idea Cellular up by 2.32%, Ultratech Cement up by 2.08% and Axis Bank up by 1.80%. On the flip side, BHEL down by 11.19%, BPCL down by 5.47%, Adani Ports &Special down by 5.00%, Hindalco down by 4.63% and Tata Steel down by 4.32% were the top losers.

Asian markets were trading mostly in red; FTSE Bursa Malaysia KLCI increased 1.19 points or 0.07% to 1,645.14, while Nikkei 225 decreased 550.85 points or 3.51% to 15,162.54, Hang Seng decreased 155.65 points or 0.84% to 18,390.15, Jakarta Composite decreased 39.29 points or 0.82% to 4,736.57 and KOSPI Index decreased 26.53 points or 1.43% to 1,835.01.