Markets trade lower in early deals on Monday

Indian equity benchmarks are trading with marginal losses in early deals on Monday, after getting a positive opening. While the Asian peers were trading mixed, some cautiousness prevailed in the local markets ahead of March F&O expiry on Thursday. Further, depreciation in Indian rupee against dollar too kept pressurizing sentiments. The rupee weakened by 24 paise to quote at 66.88 against the dollar in early trade on Monday at the Interbank Foreign Exchange market on month-end demand for the American currency from importers and banks. However, IT stocks such as Infosys, TCS, Tech Mahindra, HCL Technologies and Wipro were trading higher, after Accenture reported better than estimated earnings for the second quarter and raised its full-year net revenue forecast well above analysts' expectation.  Moreover, Telecom stocks such as Bharti Airtel, and MTNL were trading higher as the Department of Telecom is looking to commence the auction for spectrum, including in 700 Mhz band, around mid-July, which may fetch the government a whopping Rs 5.36 lakh crore.

In the scrip specific development, Natco Pharma dropped 9 per cent on the BSE, after the drug maker received “minor” observations by US Food & Drug Administration (USFDA) following recent inspections at its two facilities and they will not have an adverse impact on its current or future products.

On the global front, some of the Asian markets were trading in green as traders welcomed a better-than-expected jump in US growth and the first profits rise in Chinese industrial firms for seven months. Market in Hong Kong remained closed for the Easter holiday.

Back home, traders were seen piling up position in IT, TECK, Consumer Durables and Power, while selling was witnessed in Realty, Metal, Auto, Bankex and FMCG. The market breadth on BSE was positive in the ratio of 818: 754 while 119 scrips remained unchanged.

The BSE Sensex is currently trading at 25300.01, down by 37.55 points or 0.15% after trading in a range of 25299.27 and 25432.94. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.20%, while Small cap index was lower by 0.11%.

The top gaining sectoral indices on the BSE were IT up by 0.85%, TECK up by 0.62%, Consumer Durables up by 0.23% and Power up by 0.11%, while Realty down by 1.15%, Metal down by 1.08%, Auto down by 0.33%, Bankex down by 0.32% and FMCG down by 0.12% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports &Special up by 1.45%, GAIL India up by 1.31%, Infosys up by 1.25%, TCS up by 1.02% and Cipla up by 0.68%. On the flip side, Sun Pharma Inds. down by 1.50%, Axis Bank down by 1.38%, Tata Steel down by 1.14%, Tata Motors down by 1.07% and HDFC down by 1.06% were the top losers.

Meanwhile, in order to help farmers in getting good prices of their produce besides eliminating wastage of food produce, the government will soon coming out with detailed norms to operationalise the decision to permit 100 percent foreign direct investment (FDI) in the food processing sector.

Commerce and industry minister Nirmala Sitharaman has said that there are a lot of people who are interested in putting funds for creating value addition in agricultural produce. Therefore if FDI is permitted, they can come, procure from the farmer, give him a fair price, do value addition and avoid wastage of produce. She said that government will soon come out with detailed guidelines on FDI in food processing. The department of industrial policy and promotion (DIPP) is in the process of finalising the cabinet note in this regard along with ministry of food processing.

The minister added that the FDI in food processing sector will also eliminate wastage of food produce, as there is a lot of food being wasted in the country because there are no storage capacities. Wastage is there because timely procurement does not happen.

The government in the latest Budget has proposed allowing 100 percent foreign direct investment in marketing and processing of food products. Recently Food Processing Minister Harsimrat Kaur Badal has pitched for investing 25% of the inflows for creating agriculture infrastructure at the farm level, directly benefiting the farmers and said that FDI in food processing would lead to creation of ‘swadeshi’ (local) infrastructure with ‘videshi’ money (foreign investment).

The CNX Nifty is currently trading at 7709.00, down by 7.50 points or 0.10% after trading in a range of 7705.75 and 7749.40. There were 17 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 1.35%, Infosys up by 1.30%, Adani Ports &Special up by 1.30%, TCS up by 1.06% and Kotak Mahindra Bank up by 1.05%. On the flip side, Vedanta down by 3.10%, Hindalco down by 2.08%, Sun Pharma Inds. down by 1.56%, Cairn India down by 1.52% and Axis Bank down by 1.51% were the top losers.

Asian markets were trading mixed, KOSPI Index increased 2.06 points or 0.1% to 1,985.87, Shanghai Composite increased 14.29 points or 0.48% to 2,993.72 and Nikkei 225 increased 131.44 points or 0.77% to 17,134.19. On the flip side, Jakarta Composite decreased 52.01 points or 1.08% to 4,775.08, Taiwan Weighted decreased 7.61 points or 0.09% to 8,697.36 and FTSE Bursa Malaysia KLCI decreased 3.62 points or 0.21% to 1,700.17.