Benchmarks extend losses; Sensex slips below 25,150 mark

Indian equity benchmarks extended their losses and continued their weak trade in late afternoon session on account of profit-booking by investors in recent gainers. Sentiments remained subdued with the report that manufacturing activity in the country does not augur well for the economic growth in March and bank credit to domestic export sector has suffered due to fall in external demand. The yearly SBI Composite Index for March has declined below 50 and is at 49.5, compared with last month index of 51.3. Losses were also sparked as Asian stocks seesawed after hawkish comments from U.S. Federal Reserve officials clouded the country's monetary policy outlook.  Besides, depreciation in Indian rupee too weighed down the sentiment. Indian rupee depreciated 23 paise to 66.76 against dollar in late afternoon trade due to higher demand for the dollar from importers. However, losses remained capped with the report that India's current account deficit, the excess of imports over exports, fell further to 1.3% of the gross domestic product due to benefits of lower commodity prices, but the fall in remittances from overseas Indians has restricted the improvement in balance of payments (BoP).

Traders were seen piling up position in Realty, Consumer Durables and Power stocks while selling was witnessed in FMCG, Banking and IT sector stocks. In scrip specific development, shares of Indoco Remedies rallied after the company received US Food and Drug Administration (USFDA) approval for Goa solid dosages plant. Furthermore, MIC Electronics rose after the company received a Letter of Award (LoA) from the government.

The market breadth on BSE was negative in the ratio of 1187: 1290 while 179 scrips remained unchanged.

The BSE Sensex is currently trading at 25128.09, down by 157.28 points or 0.62% after trading in a range of 25083.70 and 25331.01. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.08%, while Small cap index down by 0.24%.

The top gaining sectoral indices on the BSE were Realty up by 1.27%, Consumer Durables up by 1.10%, Power up by 0.67%, Capital Goods up by 0.46% and Oil & Gas up by 0.10%, while FMCG down by 1.55%, Bankex down by 0.84%, IT down by 0.72%, TECK down by 0.66% and Metal down by 0.37% were the top losing indices on BSE.

The top gainers on the Sensex were BHEL up by 3.80%, Mahindra & Mahindra up by 1.84%, Sun Pharma up by 0.53%, Reliance Industries up by 0.37% and Lupin up by 0.36%. On the flip side, Dr. Reddys Lab down by 3.47%, ITC down by 2.15%, Adani Ports &Special down by 1.95%, Hindustan Unilever down by 1.74% and Axis Bank down by 1.60% 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 7651.10, down by 53.15 points or 0.69% after trading in a range of 7643.80 and 7711.10. There were 16 stocks advancing against 33 stocks declining on the index while 1 stock remained unchanged.

The top gainers on Nifty were BHEL up by 3.93%, Tata Power up by 2.79%, Mahindra & Mahindra up by 1.78%, Bosch up by 1.55% and Cairn India up by 0.73%. On the flip side, Dr. Reddys Lab down by 3.68%, ITC down by 2.64%, Ambuja Cement down by 2.05%, Axis Bank down by 2.00% and Adani Ports &Special down by 1.99% were the top losers.

Asian markets were trading mostly in red, Hang Seng was down by 0.08%, Taiwan Weighted down by 0.31%, Jakarta Composite down by 0.94%, Shanghai Composite down by 0.64% and FTSE Bursa Malaysia KLCI was down by 0.02%. On the flip side, KOSPI Index was up by 0.35% and Nikkei 225 was up by 1.94%

The European markets were trading in red; Germany’s DAX was down by 1.77%, UK’s FTSE 100 down by  1.06% and France’s CAC was down by  1.38%.