Markets trade lower in early deals; Nifty breaches 7,200 mark

After gaining over a quarter percent in last session, Key Indian benchmarks are reeling under pressure in morning deals on Tuesday, tracking weak cues from other Asian markets. Sentiments were negative on report that exports of over half of the sectors, out of the 30 closely monitored by the Commerce Ministry, were in the negative zone in January due to a fall in global prices and demand. Further, foreign institutional investors were net sellers to the tune of Rs 657 crore on Monday, as per provisional stock exchange data that also kept pressurizing sentiment. Moreover, cautiousness prevailed in the markets ahead of February F&O expiry on Thursday and the Budget session of Parliament that start later in the day. The Rail Budget will be unveiled on Thursday.  At present, Sensex and Nifty were trading below the crucial 23,700 and 7,200 levels respectively.  Apart from blue chips, broader indices too were weak with both mid cap and small cap indices trading down by 0.26% and 0.21% respectively.

In the scrip specific development, Tata Motors' Differential Voting Rights (DVR) surged 6% to Rs 260 on the National Stock Exchange (NSE), as the stock along with three other companies would be added in the benchmark Nifty 50 index with effect from April 1.

On the global front, the US markets ended higher on Monday as oil prices climbed. The Dow Jones industrial average closed up about 228 points to end within 10 percent of its 52-week intraday high, or out of correction territory. Asian markets were trading mostly in red as the price of crude oil turned lower following a surge overnight.

Back home, all sectoral indices on the BSE, Metal, were trading in red led by Bankex, FMCG, Power, PSU and Capital Goods. The market breadth on BSE was negative in the ratio of 550: 876, while 80 scrips remained unchanged.

The BSE Sensex is currently trading at 23664.14, down by 124.65 points or 0.52% after trading in a range of 23642.69 and 23851.51. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.26%, while Small cap index was lower by 0.21%.

The lone gaining sectoral index on the BSE was Metal up by 0.60%, while Bankex down by 0.99%, FMCG down by 0.95%, Power down by 0.82%, PSU down by 0.59% and Capital Goods down by 0.48% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 1.49%, ONGC up by 1.42%, Sun Pharma Inds. up by 1.09%, Maruti Suzuki up by 1.04% and Adani Ports &Special up by 0.80%. On the flip side, NTPC down by 2.05%, ITC down by 1.44%, Bajaj Auto down by 1.41%, SBI down by 1.24% and Hero MotoCorp down by 1.11% were the top losers.

Meanwhile, just a week ahead of the presentation of Budget 2016-17, Economic Affairs Secretary Shaktikanta Das, terming the projected 7.6 percent growth for the current fiscal as “very, very significant” has expressed the government's commitment to work towards boosting economic growth. He said that there is uncertainty, volatility all around. I think amid when we are in a sea that is in turbulence, India is afloat'. 'We were used to 8-9% growth, but given the problem the world is encountering; I think 7.6% growth is very, very significant”.

He said that not only remaining afloat, this year as CSO has already given out we are expecting a growth of 7.6 per cent which can be considered as very good, given the circumstances. Das further said that the world economy today is experiencing the kind of the volatility which we never saw earlier. There was time when we used to say what is going to happen next week in Europe or in some part of the world we do not know. But today, we have come to a position we do not know what is going to happen the very next day in which part of the world. He added that whatever happens in any part of the world affects us because India over the last several years is getting increasingly globalised.

The Economic Affairs Secretary said that the government is committed to not just maintaining growth, but improving it. He added that growth is important because growth leads to job creation, growth leads to more opportunities, more economic activities which lead to more development.

The CNX Nifty is currently trading at 7193.20, down by 41.35 points or 0.57% after trading in a range of 7187.35 and 7241.70. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 2.30%, Tata Steel up by 1.47%, ONGC up by 1.33%, Maruti Suzuki up by 1.09% and Sun Pharma Inds. up by 1.00%. On the flip side, PNB down by 2.45%, NTPC down by 2.09%, ITC down by 1.68%, SBI down by 1.61% and Bajaj Auto down by 1.58% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 104.78 points or 0.54% to 19,359.31, Shanghai Composite decreased 36.88 points or 1.26% to 2,890.29, Jakarta Composite decreased 11.43 points or 0.24% to 4,697.19, KOSPI Index decreased 3.95 points or 0.21% to 1,912.41 and Taiwan Weighted decreased 2.05 points or 0.02% to 8,324.63.

On the flip side, FTSE Bursa Malaysia KLCI increased 8.32 points or 0.5% to 1,682.91 and Nikkei 225 increased 15.39 points or 0.1% to 16,126.44.