Benchmarks continue weak trade; Capital Goods, Oil & Gas drag

Indian equity benchmarks continued its weak trade in the late afternoon session on account of selling in frontline blue chip. The sentiments remained under pressure as data showed that the country’s exports shrank 13.6% in January - for the 14th month in a row. The rupee was trading lower against the American currency at the Interbank Foreign Exchange market as the dollar firmed up overseas, too weighed down on the sentiments. Traders were seen piling positions in Power stocks while selling was witnessed in Capital Goods, Oil & Gas and Consumer Durables sector stocks. In scrip specific development, United Breweries (Holdings) was trading in red after Punjab National Bank declared the Vijay Mallya-controlled company as a ‘Wilful Defaulter’. UB Holdings stated that it is in consultation with its legal counsels to challenge the decision by taking appropriate legal action that may be required in this regard.

On the global front, the Asian markets were trading mostly in green while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 7,150 and 23,500 levels respectively. The market breadth on BSE was negative in the ratio of 715:1747 while 104 scrips remained unchanged.

The BSE Sensex is currently trading at 23406.04, down by 148.08 points or 0.63% after trading in a range of 23363.65 and 23692.08. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.62%, while Small cap index down by 1.20%.

The gaining sectoral index on the BSE was Power up by 0.24% while, Capital Goods down by 2.16%, Oil & Gas down by 1.17%, Consumer Durables down by 1.08%, PSU down by 1.07%, Bankex down by 1.01% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports & Special Economic Zone up by 5.18%, NTPC up by 4.12%, ONGC up by 1.83%, Hero MotoCorp up by 0.88% and Bharti Airtel up by 0.74%.

On the flip side, SBI down by 4.25%, Cipla down by 2.80%, Larsen & Toubro down by 2.61%, Lupin down by 1.92% and Axis Bank down by 1.83% were the top losers.

Meanwhile, government has approved 10 foreign direct investment (FDI) proposals amounting Rs 607 crore, including proposal of Alstom Manufacturing India worth Rs 400 crore on the recommendations of Foreign Investment Promotion Board (FIPB), chaired by Economic Affairs Secretary Shaktikanta Das. Alstom Manufacturing India had sought an approval to hold equity and arrange finance for its downstream investment company Electric Locomotive Company to be set up in Madhepura (Bihar).

FIPB also cleared FDI proposal of Cipla amounting Rs 145.22 crore. Further, Emcure Pharmaceuticals’ proposal worth Rs 57.4 crore got approval. It had sought approval for the issuance of additional ESOPS to four non-resident employees to the extent of 0.28 per cent. Atria Convergence Technologies also got approval. It had sought approval for transfer of its shares from existing non-resident shareholders to Argan (Mauritius) and TA FVCI Investors. Further, proposals of Glenmark Pharmaceuticals, Euronet Services India, AvH Resources India, Capricorn Ventures, DEN Networks and Celestis Pharmaceuticals were cleared.

Meanwhile, 5 FDI proposals were rejected which include Ashdene Investments, Veritas (India), KDK Softwares (India), Kemefs Specialities and Afro Asia Equipments. Further, 8 proposals including those of ICICI Lombard General Insurance, ICICI Prudential Life Insurance, Reckitt Benckiser (India),  Almondz Insurance Brokers, Taurus Ventures, Jasper Infotech, One97 Communications and Athena Chhattisgarh Power have been  deferred.

Furthermore, as per the revised FDI norms, it has recommended one proposal for approval of Cabinet Committee on Economic Affairs (CCEA) headed by the Prime Minister, involving FDI of Rs 5856.51 crore. ATC Asia Pacific’s proposal seeking nod for acquisition of 51 per cent of the shareholding of Viom Networks would involve inflow of Rs 5,856.51 crore.  As per the revised guidelines, any proposal involving fund inflow of Rs 5,000 crore requires CCEA approval. Earlier this limit was Rs 3,000 crore.

The CNX Nifty is currently trading at 7109.90, down by 53.05 points or 0.74% after trading in a range of 7100.70 and 7204.65. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Adani Ports & Special Economic Zone up by 5.26%, NTPC up by 4.37%, Cairn India up by 3.12%, ONGC up by 1.72% and IndusInd Bank up by 1.50%.

On the flip side, BPCL down by 5.08%, SBI down by 4.59%, Bank of Baroda down by 3.95%, PNB down by 3.73% and Cipla down by 2.90% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 13.25 points or 0.8% to 1,663.21, KOSPI Index increased 26.1 points or 1.4% to 1,888.30, Nikkei 225 increased 31.85 points or 0.2% to 16,054.43, Shanghai Composite increased 90.38 points or 3.29% to 2,836.57, Taiwan Weighted increased 145.56 points or 1.8% to 8,212.07 and Hang Seng increased 203.94 points or 1.08% to 19,122.08.

On the other hand, Jakarta Composite decreased 7.34 points or 0.15% to 4,733.38.

The European markets were trading in green; Germany’s DAX increased 19.57 points or 0.21% to 9,226.41, France’s CAC increased 24.27 points or 0.59% to 4,139.52 and UK’s FTSE 100 increased 48.29 points or 0.83% to 5,872.57.