Markets continue to trade lower in early noon session

Indian equity benchmarks continued to trade lower in the early noon session on account of sustained selling by investors in the blue chip stocks such as Power, Metal, Oil & Gas amid weak cues from the Asian markets. Cautiousness remained in the markets ahead of central banks' meetings in the United States and Japan this week. Further, slip in crude oil prices and depreciating rupee, too hit market sentiments. However, losses remained capped with the PHD Chamber of Commerce’s report that India’s economy is likely to clock nearly 8 per cent growth in the current fiscal on the back of robust private consumption, which has benefited from lower energy prices and higher real incomes. The report also estimated that India’s share in world GDP has doubled from 1.43 percent in 2000 to 2.86 percent in 2015.

In scrip specific development, shares of Cairn India were trading down after the company reported a huge loss in the fourth quarter ended March 31, 2016. For the quarter ended March 31, 2016,  the company registered a loss of Rs 10,948 crore compared to a loss of Rs 241 crore in the same quarter last fiscal.

The BSE Sensex is currently trading at 25662.58, down by 175.56 points or 0.68% after trading in a range of 25649.12 and 25891.03. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.25%, while Small cap index down by 0.38%.

The top losing sectoral indices on the BSE were Power down by 1.68%, Metal down by 1.63%, Oil & Gas down by 1.18%, PSU down by 0.94% and Auto down by 0.75%, while they were no gainers on the sectoral index.

The top gainers on the Sensex were Bharti Airtel up by 1.81%, Bajaj Auto up by 0.95%, TCS up by 0.60%, Adani Ports &Special up by 0.39% and Coal India up by 0.09%. On the flip side, NTPC down by 3.18%, Tata Steel down by 2.35%, Reliance Industries down by 2.32%, Maruti Suzuki down by 1.91% and BHEL down by 1.64% were the top losers.

Meanwhile, the Civil Aviation Ministry expects to come out with the new civil aviation policy next month. The inter-ministerial consultations on the revised draft policy are progressing and once these are completed, the ministry hopes to give the final touches and move the Cabinet for a nod.

The policy was expected to be finalised in the last financial year as certain proposals were to be implemented from April 1, 2016. However, differences over various issues including the 5/20 rule for domestic carriers have delayed finalisation of the policy. The issue of 5/20 international flying norm has witnessed extensive debates with legacy carriers opposing any changes to the rule, while start-up airlines are against continuing with the requirement.

The draft policy, unveiled in October 2015, seeks to bolster the country's aviation sector which has high growth potential. It had suggested tax incentives for airlines, maintenance and repair works of aircraft, increasing FDI limit for foreign airlines, setting up of no-frills airports and providing viability gap funding for carriers to bolster regional air connectivity.

The CNX Nifty is currently trading at 7843.80, down by 55.50 points or 0.70% after trading in a range of 7841.55 and 7911.00. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 1.95%, Bajaj Auto up by 0.90%, Ultratech Cement up by 0.83%, Ambuja Cement up by 0.70% and TCS up by 0.68%. On the flip side, Hindalco down by 4.35%, NTPC down by 3.52%, Tata Steel down by 2.35%, Reliance Industries down by 2.34% and Bank Of Baroda down by 2.16% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 decreased 145.74 points or 0.83% to 17,426.75, Hang Seng decreased 96.01 points or 0.45% to 21,371.03, Jakarta Composite decreased 33.29 points or 0.68% to 4,881.45, Shanghai Composite decreased 5.84 points or 0.2% to 2,953.40, FTSE Bursa Malaysia KLCI decreased 5.34 points or 0.31% to 1,712.62 and KOSPI Index decreased 0.94 points or 0.05% to 2,014.55, while Taiwan Weighted increased 24.53 points or 0.29% to 8,560.28.