Markets extend losses in early noon session

Indian equity benchmarks have extended losses in early noon session on account of heavy selling by fund and retail investors in the blue chip stock counters amid weak cues from Asian markets. Cautiousness remained in markets ahead of April derivatives series expiry due today. Sentiment remained down-beat with Fitch ratings’ report which stated that the rapid rise in private-sector debt in emerging markets (EMs), particularly in foreign currency, has increased risks to their economies at a time of heightened global uncertainty. Foreign-currency debt was highest as a share of GDP in Turkey at 41 per cent (including indexed debt) and Russia at 37 per cent. It was lowest in China at 10 per cent of GDP, and India at 17 per cent. Meanwhile, most real estate stocks were trading higher after Municipal Corporation of Greater Mumbai (MCGM) on Wednesday came out with a revised draft development plan which recommends hike in the floor space index (FSI) from the present 1.33 to 2 and in some cases even up to 5.

On the global front, Asian markets were trading mostly in red, with Japanese shares declining the most after the Bank of Japan at its policy meet today lowered the GDP growth forecast to 1.2% compared to 1.5% higher. Back home, in scrip specific development, share of Yes Bank was trading higher after the private sector lender reported 27% growth in net profit in the March 2016 quarter at Rs 702 crore, compared to Rs 551 crore in the corresponding quarter a year ago. Bharti Airtel was trading higher after the company reported 2.8 per cent jump in net profit to Rs 1,290 crore for the fourth quarter ended March 31, 2015-16. It had reported net profit of Rs 1,255 crore in the January-March period of the 2014-15 fiscal.

The BSE Sensex is currently trading at 25900.10, down by 164.02 points or 0.63% after trading in a range of 25824.71 and 26100.54. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.06%, while Small cap index down by 0.32%.

The top gaining sectoral indices on the BSE were Realty up by 2.63% and Consumer Durables up by 0.13%, while IT down by 0.98%, Auto down by 0.91%, FMCG down by 0.85%, TECK down by 0.73% and Oil & Gas down by 0.70% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.13%, Lupin up by 0.77%, Tata Steel up by 0.48%, TCS up by 0.45% and Coal India up by 0.38%. On the flip side, BHEL down by 2.62%, Mahindra & Mahindra down by 2.26%, Infosys down by 1.56%, HDFC down by 1.54% and GAIL India down by 1.38% were the top losers.

Meanwhile, the Cabinet will soon take up the proposal to allow 100% foreign direct investment (FDI) in food processing sector through government approval route. The Department of Industrial Policy and Promotion (DIPP) has sent the proposal for the consideration of the Cabinet.  They want to make the policy simple.

Only food items will be a part of the policy, non-food items cannot come in the garb of food. Besides, the government is also likely to permit business-to- consumer online selling of food products produced and manufactured domestically.

Finance Minister Arun Jaitley in his FY17 budget speech had said that 100% FDI will be allowed through FIPB route in marketing of food products produced and manufactured in India. This will benefit farmers, give impetus to the food processing industry and also create vast employment opportunities.

Food Processing Industry is one of the major employment intensive segments. In 2013, India allowed 51% FDI in multi-brand retailing with 30% domestic sourcing norm. The share of food processing sector in GDP of manufacturing sector was 9.8% in 2012-13. During April-December, FDI into the country grew by 40% to $29.44 billion.

The CNX Nifty is currently trading at 7926.20, down by 53.70 points or 0.67% after trading in a range of 7908.40 and 7992.00. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 2.61%, Idea Cellular up by 1.08%, Bharti Airtel up by 0.84%, Lupin up by 0.67% and Tata Steel up by 0.45%. On the flip side, HCL down by 3.71%, BHEL down by 2.54%, Mahindra & Mahindra down by 2.40%, Hindalco down by 1.97% and Tech Mahindra down by 1.96% were the top losers.

Asian markets were trading mostly in red; Hang Seng increased 58.64 points or 0.27% to 21,420.24, while Nikkei 225 decreased 604 points or 3.49% to 16,686.49, Taiwan Weighted decreased 89.18 points or 1.04% to 8,473.87, Shanghai Composite decreased 34.3 points or 1.16% to 2,919.37, KOSPI Index decreased 14.47 points or 0.72% to 2,000.93, FTSE Bursa Malaysia KLCI decreased 13.86 points or 0.82% to 1,678.48 and Jakarta Composite decreased 6.05 points or 0.12% to 4,839.61.