Benchmarks extend losses; trades at lowest point of the day

Indian equity benchmarks extended their losses and continued their weak trade hovering near the lowest point of the day in the late afternoon session on account of profit-booking by investors in recent gainers, even as retail inflation fell to a three-month low in February. Investors maintained a cautious approach ahead of the two-day meeting of the US Federal Reserve’s Federal Open Market Committee that begins on Tuesday. Traders were seen piling up position in Metal, Oil & Gas and PSU stocks while selling was witnessed in FMCG, TECK and IT sector stocks. Hectic buying activity was witnessed in sugar stocks on the back of rising sugar prices in the international markets. In scrip specific development, Housing Development Finance Corporation (HDFC) was trading in red after a foreign brokerage firm downgraded the stock to sell stating that structural changes will dampen profitability and its core business is likely to be pressured. Procter & Gamble Hygiene & Health Care was trading under pressure after the company announced that it has stopped sale and manufacturing of its popular brand Vicks Action 500 Extra.

On the global front, the Asian markets were trading mostly in red, while the European markets were trading on pessimistic 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 negative in the ratio of 849:1629, while 145 scrips remained unchanged.

The BSE Sensex is currently trading at 24528.08, down by 276.20 points or 1.11% after trading in a range of 24528.08 and 24840.77. There were 5 stocks advancing against 25 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 0.73%.

The gaining sectoral indices on the BSE were Metal up by 0.20%, Oil & Gas up by 0.10%, PSU up by 0.08%, Bankex up by 0.08% while, FMCG down by 1.75%, TECK down by 1.11%, IT down by 1.03%, Auto down by 0.71%, Capital Goods down by 0.40% were the losing indices on BSE.

The top gainers on the Sensex were SBI up by 1.29%, Tata Steel up by 0.83%, Bharti Airtel up by 0.73%, Axis Bank up by 0.44% and Maruti Suzuki up by 0.02%.

On the flip side, Lupin down by 6.85%, HDFC down by 3.12%, Cipla down by 2.90%, ITC down by 2.37% and Sun Pharma down by 2.04% were the top losers.

Meanwhile, India’s trade deficit with China has increased to $ 51.86 billion in 2015, with a bilateral trade of $71.22 billion in the year. During this period, India's exports to China came in at $9.68 billion, while imports were $61.54 billion. In 2014-15, the deficit was aggregated at $ 48.48 billion.

Commerce and Industry Minister Nirmala Sitharaman has stated that increase in trade deficit with China can primarily be attributed to the fact that Chinese exports to India rely strongly on manufactured items meeting the demand of fast-expanding sectors like telecom and power while India's exports to China are characterised by primary products, raw material and intermediate products.

The minister however said that in order to boost exports and maintain balance of trade with China, India has impressed upon China to recognise the need for reduction in trade imbalance for a long term, sustainable and harmonious development of economic cooperation between the two countries. She also informed that so far, India has initiated 322 anti-dumping cases out of which 177 cases involve China. The Commerce Ministry's of both the countries have signed a Five-year Development Programme for Economic and Trade Cooperation in September 2014 to lay down a medium-term roadmap for promoting balanced and sustainable development of economic and trade relation.

The CNX Nifty is currently trading at 7454.85, down by 83.90 points or 1.11% after trading in a range of 7454.85 and 7545.20. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were SBI up by 1.46%, PNB up by 1.28%, BPCL up by 1.12%, Tata Steel up by 0.89% and Yes Bank up by 0.89%.

On the flip side, Lupin down by 6.97%, Zee Entertainment down by 3.71%, HDFC down by 3.52%, Cipla down by 2.79% and ITC down by 2.69% were the top losers

The Asian markets were trading mostly in red; Hang Seng decreased 146.57 points or 0.72% to 20,288.77, Taiwan Weighted decreased 136.72 points or 1.56% to 8,611.18, Nikkei 225 decreased 116.68 points or 0.68% to 17,117.07, Jakarta Composite decreased 31.4 points or 0.64% to 4,846.13, FTSE Bursa Malaysia KLCI decreased 9.3 points or 0.55% to 1,691.01 and KOSPI Index decreased 2.3 points or 0.12% to 1,969.97.

On the other hand, Shanghai Composite increased 4.87 points or 0.17% to 2,864.37.

The European markets were trading in red; UK’s FTSE 100 decreased 38.63 points or 0.63% to 6,135.94, Germany’s DAX decreased 74.89 points or 0.75% to 9,915.37 and France’s CAC decreased 35.63 points or 0.79% to 4,470.96.