Markets pare gains after making a good start

After making a good start, benchmarks have pared their initial gains but were managing to remain in the green terrain in early trade on Monday. The markets tracked negative cues from other Asian markets and crude oil after OPEC and non-OPEC producers failed to reach a deal to freeze oil output. The sentiments were further weighed down by Indian rupee depreciating 6 paise to 66.70 against the US currency in early trade at the Inter-bank Foreign Exchange on account of increased demand for the dollar from importers. Besides, there was some cautiousness in the markets with a quarterly employment survey report of Labour Bureau, a wing of Labour Ministry, stating that employment generation in eight key sectors, including gems & jewellery, handloom, leather and automobiles, was at seven-year low of 1,35,000 jobs in 2015. Moreover, the October-December quarter of 2015 saw job losses of 20,000 in eight key sectors compared to previous quarter.

In the scrip specific development, Infosys surged over 6 per cent on the BSE after India’s second-largest information technology (IT) services firm forecast strong revenue growth of 11.5%-13.5% in consent currency in the current fiscal. DCB Bank too rallied 6 per cent on the BSE after the bank reported strong growth in net interest income and decline in gross and net non-performing assets for the quarter ended March 31, 2016.

On the global front, US markets ended mostly lower on Friday but major indices still posted weekly gains. Asian markets were trading lower as oil tumbled after top oil producers failed to reach an agreement to freeze production and Japan shares took a hit from large earthquakes last week.

Back home, traders were seen piling up position in IT, TECK, Consumer Durables, FMCG and Realty, while selling was witnessed in Bankex, PSU, Oil & Gas, Power and Metal. The market breadth on BSE was positive in the ratio of 831:804, while 94 scrips remained unchanged.

The BSE Sensex is currently trading at 25694.56, up by 67.81 points or 0.26% after trading in a range of 25634.12 and 25870.03. There were 9 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.43%, while Small cap index was up by 0.27%.

The top gaining sectoral indices on the BSE were IT up by 2.71%, TECK up by 2.49%, Consumer Durables up by 1.49%, FMCG up by 0.41% and Realty up by 0.19%, while Bankex down by 1.12%, PSU down by 0.80%, Oil & Gas down by 0.46%, Power down by 0.37% and Metal down by 0.31% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 6.48%, Lupin up by 1.69%, Bharti Airtel up by 1.04%, Mahindra & Mahindra up by 0.86% and Adani Ports &Special up by 0.75%. On the flip side, ONGC down by 2.72%, ICICI Bank down by 2.32%, TCS down by 2.04%, SBI down by 2.01% and GAIL India down by 1.36% were the top losers.

Meanwhile, Labour Bureau, a wing of Labour Ministry in its  28th Quarterly Report on Changes in Employment in Selected Sectors, has came up with a disappointing  figure, stating that employment generation in eight key sectors, including gems & jewellery, handloom, leather and automobiles, was at seven-year low of 1,35,000 jobs in 2015.

The survey also said that the October-December quarter of 2015 saw job losses of 20,000 in eight key sectors compared to previous quarter. Though, it said that comparison of the results for the period December, 2015 over December, 2014 shows that the employment at overall level has increased by 135,000.  Sector wise, the survey found that gems & jewellery sector saw 19,000 job loss during 2015 followed by handloom/Powerloom at 11,000. The employment decreased by 8,000 each in leather and automobiles sectors, while 4,000 jobs loss was recorded in transport sector.

The bureau has been conducting quarterly employment surveys since January, 2009 to study the impact of global economic slowdown on employment in selected sectors -- Textiles including Apparels, Leather, Metals, Automobiles, Gems & Jewellery, Transport, IT/BPO and Handloom/Powerloom. As per the earlier surveys, employment increased by 4.21 lakh in 2014, 4.19 lakh in 2013, 3.21 lakh in 2012, 9.29 lakh in 2011, 8.7 lakh in 2010 and 12.8 lakh in 2009.

The CNX Nifty is currently trading at 7862.65, up by 12.20 points or 0.16% after trading in a range of 7842.75 and 7912.65. There were 18 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Infosys up by 6.45%, Bharti Infratel up by 3.41%, Idea Cellular up by 2.92%, BPCL up by 2.11% and HCL Tech. up by 1.33%. On the flip side, ONGC down by 2.98%, Bank Of Baroda down by 2.85%, ICICI Bank down by 2.18%, TCS down by 2.16% and SBI down by 2.08% were the top losers.

Asian markets were trading in red, Nikkei 225 decreased 508.57 points or 3.02% to 16,339.46, Hang Seng decreased 270.35 points or 1.27% to 21,046.12, Shanghai Composite decreased 40.32 points or 1.31% to 3,037.80, Taiwan Weighted decreased 38.1 points or 0.44% to 8,662.29, FTSE Bursa Malaysia KLCI decreased 13.58 points or 0.79% to 1,714.41, KOSPI Index decreased 10.32 points or 0.51% to 2,004.39 and Jakarta Composite decreased 0.73 points or 0.02% to 4,822.84.