Markets trade lower amid weak global cues

Indian equity markets made flat to positive start but are now trading in red with cut of over quarter a per cent in early deals on Monday amid weak global cues. Traders remained cautious ahead of the second part of the Budget session which will be commencing today, but the session is unlikely to see any important legislative business due to an ongoing controversy over the Uttarakhand political crisis. Further, weakness in rupee too weighted down the sentiment, the rupee was trading lower by 22 paise at 66.70 against the dollar in early deals on account of sustained demand for the US currency from importers.  However, down side remained capped with the PHD Chamber of Commerce’ statement that the Indian economy is likely to grow at nearly 8 per cent in the current fiscal, driven by robust private consumption, which has benefited from lower energy prices and higher real incomes. Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 191.07 crore on April 22, 2016, as per provisional data released by the stock exchanges.  

In the scrip specific development, Mahindra & Mahindra Financial Services surged over 5 per cent on the NSE  after the company’s gross non-performing assets (NPA) as percentage to total assets declined to 8% in March 2016 quarter against  10.1% in December 2015 quarter. Net NPA declined to 3.2% from 4.6% during the quarter.

On the global front, US markets ended flat on Friday after disappointing quarterly reports from Microsoft and Alphabet slammed tech stocks. Asian markets were trading in red as participants are awaiting central bank meetings in the United States and Japan this week that are expected to hold clues to future policy moves.

Back home, traders were seen piling up position in TECK, IT, Capital Goods, Banking and Realty, while selling was being witnessed in Metal, Oil & Gas, Power, PSU and FMCG. The market breadth on BSE was positive in the ratio of 823:730, while 77 scrips remained unchanged.

The BSE Sensex is currently trading at 25753.64, down by 84.50 points or 0.33% after trading in a range of 25746.19 and 25891.03. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.03%, while Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were TECK up by 0.57%, IT up by 0.39%, Capital Goods up by 0.13%, Bankex up by 0.05% and Realty up by 0.01%, while Metal down by 1.11%, Oil & Gas down by 1.05%, Power down by 0.80%, PSU down by 0.46% and FMCG down by 0.36% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.86%, Bajaj Auto up by 1.11%, TCS up by 1.01%, Adani Ports &Special up by 0.85% and ICICI Bank up by 0.71%. On the flip side, Reliance Industries down by 1.87%, Tata Steel down by 1.84%, NTPC down by 1.82%, HDFC down by 1.60% and Sun Pharma Inds. down by 1.47% were the top losers.

Meanwhile, going ahead of the government and Reserve Bank of India's (RBI) estimates about the country's economic growth, the PHD Chamber of Commerce and Industry, which acts as a catalyst in the promotion of industry, trade and entrepreneurship in the country, covering geographical span of 12 states, has said that India's economy is likely to clock nearly 8 percent growth in the current fiscal on the back of robust private consumption, which has benefited from lower energy prices and higher real incomes. It has said that with the further revival of sentiment and pick-up in industrial activity, a recovery of private investment is expected to strengthen growth in the coming times.

The chamber also estimated that India's share in world GDP has doubled from 1.43 percent in 2000 to 2.86 percent in 2015 and said that India's GDP stood at $ 477 billion in 2000 and increased to $ 2,091 billion in the year 2015, showing more than four-fold increase over a period of 15 years. Chamber’s president Mahesh Gupta added that the BRICS economies (Brazil, Russia, India, China and South Africa) also contributed a significant share in the world GDP which increased from 8.27 percent in 2000 to 22.53 percent in 2015.

Gupta also said that given weak private investment in the face of low capacity utilisation, a reduction in the policy rate by 25 bps (basis points) will help strengthen activity and aid the government's initiatives. RBI in its first monetary earlier this month cut the key interest rate by 25 basis points, but retained its GDP growth projection for 2016-17 at 7.6 percent.

The CNX Nifty is currently trading at 7873.20, down by 26.10 points or 0.33% after trading in a range of 7873.00 and 7911.00. There were 17 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 2.66%, TCS up by 1.08%, Adani Ports &Special up by 0.98%, Bajaj Auto up by 0.96% and Ambuja Cement up by 0.63%. On the flip side, Hindalco down by 2.37%, NTPC down by 1.98%, Tata Steel down by 1.91%, Reliance Industries down by 1.86% and HDFC down by 1.74% were the top losers.

Asian markets were trading in red, Taiwan Weighted increased 16.17 points or 0.19% to 8,551.92, Nikkei 225 decreased 132.87 points or 0.76% to 17,439.62, Hang Seng decreased 116.96 points or 0.54% to 21,350.08, Shanghai Composite decreased 24.61 points or 0.83% to 2,934.63, Jakarta Composite decreased 6.83 points or 0.14% to 4,907.91, FTSE Bursa Malaysia KLCI decreased 2.66 points or 0.15% to 1,715.30 and KOSPI Index decreased 2.04 points or 0.1% to 2,013.45.