Markets trade flat in early deals amid weak global cues

After posting around a percent losses in the previous session, Indian equity markets have made a flat start and are now trading with modest cut in morning deals, tracking subdued global cues on concerns over global economy slowdown, coupled with slide in crude oil prices on a sudden surge in Iraqi oil exports. The sentiment were also under pressure after data showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 294.72 crore on April 7, 2016, as per provisional data released by the stock exchanges. However, the session was productive for broader indices, which outperforming larger counterparts were trading with gains in the range of 0.15-0.20%. Traders were getting some support with global rating agency Moody’s Investors Service's latest report stating that low commodity prices and better FDI inflows have reduced India's vulnerability to external shocks which is 'credit positive' for India.

In the scrip specific development, Simplex Projects rallied over 8 per cent on the BSE after selling 51.21 percent stake in its arm Simpark Infrastructure.

On the global front, US markets ended lower on Thursday as oil prices slid and worries about the global economy resurfaced. Asian markets were mostly trading in red following the overnight sell-off on Wall Street. The Japanese yen rose to a seventeen-month high against the US dollar overnight after Bank of Japan officials said the central bank is unlikely to intervene in the currency.

Back home, traders were seen piling up position in Capital Goods, Power, FMCG and Realty, while selling was witnessed in IT, TECK, Consumer Durables, Oil & Gas and Auto. The market breadth on BSE was positive in the ratio of 713: 599, while 83scrips remained unchanged.

The BSE Sensex is currently trading at 24651.06, down by 34.36 points or 0.14% after trading in a range of 24608.51 and 24695.10. There were 16 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.17%, while Small cap index was up by 0.16%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.47%, Power up by 0.32%, FMCG up by 0.19% and Realty up by 0.06%, while IT down by 0.81%, TECK down by 0.70%, Consumer Durables down by 0.36%, Oil & Gas down by 0.29% and Auto down by 0.17% were the losing indices on BSE.

The top gainers on the Sensex were Lupin up by 1.42%, Dr. Reddys Lab up by 1.34%, Adani Ports &Special up by 0.97%, Tata Motors up by 0.72% and NTPC up by 0.67%. On the flip side, Hero MotoCorp down by 1.93%, Infosys down by 1.40%, Axis Bank down by 1.21%, Maruti Suzuki down by 1.02% and Tata Steel down by 0.90% were the top losers.

Meanwhile, Petroleum Minister Dharmendra Pradhan has said that the government will provide 1.5 crore gas connections to women members of Below Poverty Line (BPL) families during the current fiscal and added that in the next three years the target is to provide gas connections to five crore women.

Pradhan added that the government has set aside a sum of Rs 2,000 crore in Union Budget 2016 to meet the initial cost of providing these LPG connections. He said that the scheme christened ‘Ujjwala’ provides a financial support of Rs 1,600 for each LPG connection to BPL households. The scheme will free women in rural areas from the curse of smoke while cooking and also will reduce the time spent on it. Pradhan said the scheme will not only have immense health benefits for women and their children by providing a clean cooking fuel but will also provide significant ecological dividends.

He further said that after Prime Minister requested people to give up gas subsidy, 96 lakh people have surrendered it and this amount is being used to give LPG connections to women in BPL families. The identification of eligible BPL families, as proposed in the Budget for 2016-17, will be made in consultation with the state.

The CNX Nifty is currently trading at 7538.80, down by 7.65 points or 0.10% after trading in a range of 7526.70 and 7554.10. There were 30 stocks advancing against 20 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 1.23%, Lupin up by 1.22%, Tata Motors - DVR up by 1.16%, Adani Ports &Special up by 1.13% and Tata Power up by 1.02%. On the flip side, Hero MotoCorp down by 2.04%, Axis Bank down by 1.36%, Infosys down by 1.35%, Bharti Infratel down by 1.23% and Maruti Suzuki down by 1.13% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 146.77 points or 0.72% to 20,119.28, Nikkei 225 decreased 48.83 points or 0.31% to 15,701.01, Shanghai Composite decreased 27 points or 0.9% to 2,981.42, Jakarta Composite decreased 23.77 points or 0.49% to 4,843.51, KOSPI Index decreased 13.4 points or 0.68% to 1,960.49 and FTSE Bursa Malaysia KLCI decreased 7.3 points or 0.42% to 1,716.99.

On the flip side, Taiwan Weighted increased 41.26 points or 0.49% to 8,531.51.