Benchmarks continue weak trade; IT, TECK drag

Indian equity benchmarks continued their weak trade in the late afternoon session on account of selling in frontline blue chip stocks. Investors remained on cautious note ahead of the second edition of Gyan Sangam, a retreat of heads of public sector financial institutions, in the background of the government’s strategy to consolidate Public Sector (PSU) Banks. The rupee rose to 67.24 against the US dollar in early trade taking its winning streak to the sixth trading session provided some downside support. The domestic currency had jumped in the previous session to hit a fresh 7-month high of 67.34 amid sustained dollar selling by banks and exporters and unwinding of long positions in dollar by speculators. Traders were seen piling up position in Metal, PSU and Power stocks while selling was witnessed in IT, TECK and Consumer Durables sector stocks. In scrip specific development, HMT was trading firm on reports that the government is eyeing revival of the company’s wholly owned subsidiary - HMT Machine Tools. Fertilizers and Chemicals Travancore (FACT) was trading in green after the company inked a MoU with the government whereby the latter will provided Rs 1,000 crore package to the state-run fertilizer firm for its revival and expansion of production capacity to one million tonnes during the next fiscal.

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 7,500 and 24,600 levels respectively. The market breadth on BSE was positive in the ratio of 1398:1010, while 142 scrips remained unchanged.

The BSE Sensex is currently trading at 24571.41, down by 35.58 points or 0.14% after trading in a range of 24531.80 and 24719.05. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.89%, while Small cap index up by 0.54%.

The gaining sectoral indices on the BSE were Metal up by 1.76%, PSU up by 1.45%, Power up by 0.80%, Realty up by 0.71%, Bankex up by 0.37% while, IT down by 0.80%, TECK down by 0.67%, Consumer Durables down by 0.26%, Auto down by 0.10% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 3.69%, Cipla up by 2.28%, SBI up by 2.05%, Coal India up by 1.95% and ONGC up by 1.90%.

On the flip side, Asian Paints down by 1.93%, Maruti Suzuki down by 1.51%, Sun Pharma down by 1.42%, NTPC down by 1.27% and Wipro down by 1.08% were the top losers.

Meanwhile, in order to reduce litigation, the government has decided to withdraw central excise cases older than 15 years involving duty less than Rs 5 lakh. The Central Board of Excise and Customs (CBEC) said that the withdrawals of such cases would send a positive message to the manufacturing sector in which policy of 'Make in India' is being actively pursued.

The CBEC in an order to all its Principal Chief Commissioners/ Chief Commissioners of Central Excise stated the decision was in conformity with the policy of the government to reduce litigation in taxation. The decision has been taken after considering the fact that expenditure involved in continuing with such prosecution may not be commensurate with the result likely to be achieved.

This decision has also been taken in light of fact that the present limit for arrest and prosecution in Central Excise is Rs 1 crore. This enhanced limit of Rs 1 crore was prescribed on October 23, 2015, prior to which limit was Rs 25 lakh for the past 21 years.

The CNX Nifty is currently trading at 7461.75, down by 13.85 points or 0.19% after trading in a range of 7444.10 and 7505.90. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 4.65%, PNB up by 4.56%, BHEL up by 3.44%, BPCL up by 2.58% and Cipla up by 2.37%.

On the flip side, HCL Tech down by 3.28%, Idea Cellular down by 2.31%, Tech Mahindra down by 2.10%, Asian Paints down by 1.91% and Sun Pharma down by 1.60% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 2.09 points or 0.12% to 1,690.29, Shanghai Composite increased 14.39 points or 0.5% to 2,874.15, Taiwan Weighted increased 31.76 points or 0.37% to 8,643.55, Nikkei 225 increased 54.62 points or 0.32% to 17,014.78 and Hang Seng increased 234.94 points or 1.18% to 20,176.70.

On the other hand, Jakarta Composite decreased 26.52 points or 0.55% to 4,817.52 and KOSPI Index decreased 2.54 points or 0.13% to 1,955.63.

The European markets were trading in green; UK’s FTSE 100 increased 30.75 points or 0.5% to 6,161.21, France’s CAC increased 4.91 points or 0.11% to 4,420.99 and Germany’s DAX increased 6.89 points or 0.07% to 9,758.81.