Benchmarks trade lower in noon deals

Indian equity benchmarks are trading in red terrain in noon deals as investors opted to book some of their profits after two days of rally. Sentiments remained down-beat as the yearly SBI Composite Index for March has declined below 50 and is at 49.5, compared with last month index of 51.3.  However, losses remained capped with traders getting some support with rating agency ICRA projecting Indian economic growth to improve to 7.7 percent in next fiscal, led by domestic consumption demand on the back of implementation of 7th Pay Commission and OROP recommendations.

On the global front, Asian equity indices were trading mostly in red at this point of time. China stocks fell around one third of a percent as the market weighed new guidelines on pension products and recent comments by the central bank governor that some short-term speculative funds may be leaving the country. Closer home, depreciation in rupee too dampened sentiments. The rupee depreciated 6 paise to 66.59 against the US currency in noon deals due to higher demand for the dollar from importers.

The BSE Sensex is currently trading at 25211.41, down by 73.96 points or 0.29% after trading in a range of 25177.81 and 25331.01. 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 0.55%, while Small cap index up by 0.34%.

The top gaining sectoral indices on the BSE were Realty up by 1.85%, Consumer Durables up by 1.12%, Power up by 1.08%, Capital Goods up by 1.07% and Auto up by 0.86%, while FMCG down by 1.01%, TECK down by 0.69%, IT down by 0.66%, Bankex down by 0.30% and Metal down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were BHEL up by 3.97%, Mahindra & Mahindra up by 2.12%, Lupin up by 1.21%, Maruti Suzuki up by 1.11% and Tata Motors up by 0.92%. On the flip side, Bharti Airtel down by 2.42%, Dr. Reddys Lab down by 2.13%, Adani Ports &Special down by 2.03%, Hindustan Unilever down by 1.63% and ITC down by 1.57% were the top losers.

Meanwhile, based on the announcement made by Finance Minister Arun Jaitley in his Budget FY17 speech, the government is expected to propose 100 percent Foreign Direct Investments (FDI) in 25 more segments of Non-Banking Financial Company (NBFCs) including commodity broking and infrastructure debt fund, with an view to attract more foreign inflows.

The other segments of NBFCs and NBFIs (non-banking financial institutions) include insurance intermediaries, pension Management Company, asset finance company and depository participants. The move will help in promoting ease of doing business and attracting overseas investments by doing away the need of seeking government approvals.

Jaitley in its Budget speech had said that FDI will be allowed beyond the 18 specified NBFC activities in the automatic route in other activities which are regulated by financial sector regulators. At present, 100 percent FDI through automatic route is permitted in 18 NBFC activities including merchant banking, under writing, portfolio management services, financial consultancy and stock broking.

India had received $29.44 billion foreign direct investment (FDI), surging by 40 percent during April-December in the current fiscal. The FDI inflows were at $21.04 billion in the same period of previous fiscal.

The CNX Nifty is currently trading at 7680.30, down by 23.95 points or 0.31% after trading in a range of 7669.15 and 7711.10. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were BHEL up by 4.02%, Tata Power up by 3.47%, Mahindra & Mahindra up by 2.14%, Bosch up by 1.59% and Lupin up by 1.28%. On the flip side, Ambuja Cement down by 3.08%, Bharti Airtel down by 2.23%, Dr. Reddys Lab down by 2.07%, Adani Ports &Special down by 2.05% and ITC down by 1.89% were the top losers.

Asian equity indices were trading mostly in red; Hang Seng slipped 47.89 points or 0.23% to 20,636.26, Jakarta Composite decreased 32.94 points or 0.67% to 4,852.23, Taiwan Weighted dipped 27.02 points or 0.31% to 8,785.68, Shanghai Composite shed 9.8 points or 0.32% to 3,009.00 and FTSE Bursa Malaysia KLCI was down by 0.91 points or 0.05% to 1,717.45.

On the flip side, KOSPI Index increased 7.05 points or 0.35% to 1,996.81 and Nikkei 225 was up by 323.74 points or 1.94% to 17,048.55.