Benchmarks continue weak trade in late afternoon session

Indian equity benchmarks continued its weak trade in the late afternoon session on account of selling in frontline blue chip counters. The sentiments remained under pressure after the rupee fell to near record lows against the dollar forcing the Reserve Bank of India (RBI) to intervene to stem further falls on a tough day for Asian currencies. The rupee fell to as low as 68.67 to the dollar, not far from a record low of 68.85 hit in August 2013 when India was struggling with its worst financial turmoil since the 1991 balance of payment crisis. Traders were seen piling positions in Oil & Gas stocks while selling was witnessed in Consumer Durables, Metal and Bankex sector stocks. In scrip specific development, United Breweries (Holdings) continued its yesterday’s fall after the company received a letter from Punjab National Bank (PNB), whereby the bank has declared the company as a ‘Wilful Defaulter’.

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 7,050 and 23,200 levels respectively. The market breadth on BSE was negative in the ratio of 659:1756 while 125 scrips remained unchanged.

The BSE Sensex is currently trading at 23121.02, down by 70.95 points or 0.31% after trading in a range of 22920.84 and 23241.88. 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 0.94%, while Small cap index down by 0.98%.

The gaining sectoral indices on the BSE were Oil & Gas up by 0.38% while Consumer Durables down by 2.88%, Metal down by 2.11%, Bankex down by 1.25%, PSU down by 0.61%, Power down by 0.47% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports & Special Economic Zone up by 3.89%, Sun Pharma up by 1.34%, Dr. Reddy’s Lab up by 1.17%, Reliance Industries up by 1.11% and BHEL up by 1.02%.

On the flip side, Coal India down by 3.27%, ICICI Bank down by 3.05%, Lupin down by 3.01%, Bajaj Auto down by 2.24% and GAIL India down by 2.14% were the top losers.

Meanwhile, following the lifting of the sanctions imposed by the West, Iran has invited India to invest in infrastructure projects in various in sectors including railways, ports, bridges and rail electrification, worth $8 billion and has also offered a stake in expansion of the second phase of Tehran's Imam Khomeini international airport. Iran's ambassador to India Gholamreza Ansari hopes that the some of the investments will kick-start soon as Iran offers huge potential. He said that the Delhi will get priority when Iran government invites partners for investments. Besides, Iran is also seeking Indian investments in special economic zones of Chabahar.

Further, Iran has invited India to invest in the 220-km rail link between Rash and Astara in northwestern Iran which will complete the International North South Transport Corridor and make it operational by linking Iran with Central Asia and Eurasia. Besides, Iran has also invited India to construct a rail link between Masad in northeastern Iran and Herat in Afghanistan. He said that the India will be the end-user in all these projects will help India as these links will connect South Asia's biggest country with the huge market and will also help in transportation of commodities from the Eurasian region.

Connectivity is one area where Iran and India are hoping to forge a win-win partnership. Currently, the two sides are negotiating India's participation in the 600-km rail network between Chabahar port and Zahedan, which will connect India with the Iranian rail network.

The CNX Nifty is currently trading at 7021.30, down by 26.95 points or 0.38% after trading in a range of 6960.65 and 7059.75. 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 3.77%, BPCL up by 3.40%, Dr. Reddy’s Lab up by 1.39%, Zee Entertainment up by 1.25% and Sun Pharma up by 1.19%.

On the flip side, Yes Bank down by 3.84%, Coal India down by 3.18%, ICICI Bank down by 3.05%, Lupin down by 2.73% and Ambuja Cement down by 2.63% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 1.41 points or 0.08% to 1,666.40, Taiwan Weighted increased 2.18 points or 0.03% to 8,214.25, Jakarta Composite increased 13.62 points or 0.29% to 4,758.62 and Shanghai Composite increased 30.77 points or 1.08% to 2,867.34.

On the other hand, Nikkei 225 decreased 218.07 points or 1.36% to 15,836.36, Hang Seng decreased 197.51 points or 1.03% to 18,924.57 and KOSPI Index decreased 4.36 points or 0.23% to 1,883.94.

The European markets were trading in green; UK’s FTSE 100 increased 34.31 points or 0.59% to 5,896.48, France’s CAC increased 26.67 points or 0.65% to 4,137.33 and Germany’s DAX increased 53.99 points or 0.59% to 9,189.10.