Markets continue to trade in red in early noon session

Indian equity benchmarks continued their southward journey in early noon session, on account of selling in the front line blue chips counters. Sentiments were weighed down on the reports that India’s import of project goods has been adversely affected by the ongoing downturn in global trade and, in turn, may point to a slowdown in the infrastructure sector. However, metal stocks were trading higher as Union Cabinet has cleared amendment to the Mines and Minerals Development and Regulation (MMDR) Act. MMDR regulates mining sector activities in the country. The move would allow transfer of mining lease for captive mines, as compared to the present scenario where transfer of mining lease is only for auctioned mines. Meanwhile, shares of aviation companies were trading higher on the Bombay Stock Exchange (BSE) after government cut air turbine fuel prices by Rs 515.85 per kilolitre.

On the global front, Asian markets were trading mostly in green, encouraged by a rally in crude oil prices and expectations that the European Central Bank will ease policy later in the day, emulating policymakers elsewhere seeking to bolster their struggling economies. Back home, both the Sensex and Nifty were trading below their crucial 24,600 and 7,500 levels, respectively. In scrip specific development, shares of Infosys were trading down after the company’s promoters offloaded 7.5 million shares in a block deal. Unichem Laboratories was trading higher as the company has received US drug regulator nod for its generic Quetiapine Fumarate tablets used for treatment of schizophrenia and bipolar disorder.

The BSE Sensex is currently trading at 24582.19, down by 211.77 points or 0.85% after trading in a range of 24529.70 and 24817.48. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.05%, while Small cap index up by 0.14%.

The top gaining sectoral indices on the BSE were Metal up by 1.24%, Consumer Durables up by 0.63% and Auto up by 0.10%, while IT down by 1.47%, TECK down by 1.38%, Capital Goods down by 1.24%, FMCG down by 1.08% and Bankex down by 0.50% were the losing indices on BSE.

The top gainers on the Sensex were Cipla up by 1.38%, Maruti Suzuki up by 1.33%, NTPC up by 0.87%, ONGC up by 0.80% and Tata Steel up by 0.73%. On the flip side, BHEL down by 2.79%, Infosys down by 2.78%, Reliance Industries down by 2.11%, ITC down by 1.55% and Larsen & Toubro down by 1.48% were the top losers.

Meanwhile, commerce and Industry Minister Nirmala Sitharaman has said that the government has sacrificed Rs 77, 694 crore revenue during 2012-13 and 2014-15 for promoting special economic zones, which are export hubs. The revenue foregone on account of concessions availed by the SEZ developers and units under certain provisions of Income Tax Act, 1961, as well as customs duty and excise duty availed during 2012-13 was aggregated at Rs 23,305.40 crore. Further, in 2013-14 and 2014-15, the estimated revenue foregone was Rs 27,855.10 crore and Rs 26,533.87 crore respectively.

Sitharaman further said that to achieve the SEZ objectives, the fiscal concessions and duty benefits allowed to SEZs are in the way of incentives. She also said that as on December 2015 there are as many as 205 operational SEZs. Exports from such zones in 2014-15 stood at Rs 4, 63,770 crore.

Highlighting the coastal economic zones (CEZs), Sitharaman said that as part of the Sagarmala Programme, CEZ is conceptualized as a spatial-economic region that will be around and integrally linked to a group of major and minor ports. Moreover, she said that once the CEZs are identified and their high level perspective plans are developed, the detailed master plans leading to identification of projects and their detailed project reports (DPRs) would be prepared.

The CNX Nifty is currently trading at 7474.80, down by 57.00 points or 0.76% after trading in a range of 7459.80 and 7547.10. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.81%, Cairn India up by 4.24%, Vedanta up by 2.45%, Maruti Suzuki up by 1.45% and Cipla up by 1.43%. On the flip side, Infosys down by 3.05%, BHEL down by 2.97%, Reliance Industries down by 2.07%, Bank of Baroda down by 2.06% and Larsen & Toubro down by 1.64% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 4.91 points or 0.29% to 1,691.26, KOSPI Index increased 19.7 points or 1.01% to 1,972.65, Taiwan Weighted increased 26.59 points or 0.31% to 8,660.70, Hang Seng increased 107.1 points or 0.54% to 20,103.36 and Nikkei 225 increased 220.94 points or 1.33% to 16,863.14, while Jakarta Composite decreased 40.17 points or 0.83% to 4,770.88 and Shanghai Composite decreased 8.73 points or 0.3% to 2,853.83.