Markets continue to trade lower in early noon session

Indian equity benchmarks continue to trade choppy with negative bias in early noon session due to profit-booking by funds and retail investors. Investors remained cautious ahead of the key macroeconomic data and quarterly earnings by some more companies, to be released this week and sentiment were under pressure with report that higher food and fuel prices probably nudged India's annual inflation up to 5.0 percent in April from 4.83 percent in March, making it harder for the central bank to follow up last month's interest rate cut too swiftly. However, shares of sugar companies such as Simbhaoli Sugars, Upper Ganges Sugar and Kothari Sugars were trading higher in early noon trade after the Indian Sugar Mills Association said that there was no need for imports as domestic sugar stocks were adequate. The association believes that domestic sugar stock piles are enough to last for the coming 24 months and hence make the need for any imports redundant.

On the global front, Asian markets were trading mixed, as weak oil prices weighed on sentiment while the dollar got a lift against its peers as the differences in policy directions between the world's top central banks became starker. Back home, on the BSE sectoral front, Auto witnessed the maximum loss in trade followed by Oil & Gas, PSU and Metal, while Capital Goods, Consumer Durables, Realty, FMCG and IT remained the gainers. In scrip specific development, share of Datamatics Global Services surged 7 percent after the company’s consortium with Mikroelektronika won a contract to provide automatic fare collection (AFC) system for the North-South corridor (Phase 1A) of the Lucknow Metro Rail Project.

The BSE Sensex is currently trading at 25657.42, down by 31.44 points or 0.12% after trading in a range of 25614.24 and 25710.69. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading modestly in green; the BSE Mid cap index was up by 0.04%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.95%, Consumer Durables up by 0.75%, Realty up by 0.52%, FMCG up by 0.34% and IT up by 0.05%, while Auto down by 1.27%, Oil & Gas down by 1.00%, PSU down by 0.58%, Metal down by 0.58% and Power down by 0.29% were the losing indices on BSE.

The top gainers on the Sensex were Dr. Reddys Lab up by 1.90%, Hindustan Unilever up by 1.81%, Larsen & Toubro up by 1.21%, BHEL up by 1.14% and Axis Bank up by 0.83%. On the flip side, Tata Motors down by 3.50%, ONGC down by 1.84%, Bharti Airtel down by 1.30%, Mahindra & Mahindra down by 0.86% and Adani Ports &Special down by 0.71% were the top losers.

Meanwhile, the government is planning to amend the 145-year-old Pensions Act, 1871 which provides shield to the pensioners against attachment of pension. Under the old law, no pension granted or continued by government on political considerations, or on account of past services, present infirmities or as a compassionate allowance, and no money due on account of any such pension or allowance, shall be liable to seizure, attachment or sequestration by process of any court at the instance of a creditor, for any demand against the pensioner, or in satisfaction of a decree or order of any such court.

Recently, a meeting was called by Ministry of Personnel, Public Grievances and Pensions to discuss and obtain views of select ministries on the proposal to amend the rules regulating various types of pension administered by them to ensure continuance of shield as provided under the 1871 Act.

During the meeting, the representative from Department of Financial Services (DFS) had suggested that instead of amending a large number of Acts and rules to secure those pensions against attachment, the existing Pensions Act, 1871 may be amended to cancel only those provisions in the Act which have since become irrelevant or redundant. The proposal was supported by representatives of ministries of Home, Labour, Rural Development, Defence, Ministry of Railways and Department of Personnel and Training. It was then decided that this suggestion will be placed before the competent authority for taking a decision in the matter.

The CNX Nifty is currently trading at 7850.70, down by 15.35 points or 0.20% after trading in a range of 7837.70 and 7874.00. There were 15 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 1.90%, Hindustan Unilever up by 1.84%, BHEL up by 1.22%, Larsen & Toubro up by 1.19% and Tech Mahindra up by 1.09%. On the flip side, Tata Motors down by 3.50%, Tata Motors - DVR down by 2.90%, ONGC down by 1.87%, Hindalco down by 1.85% and Tata Power down by 1.63% were the top losers.

Asian markets were trading mixed; FTSE Bursa Malaysia KLCI increased 1.85 points or 0.11% to 1,634.04, KOSPI Index increased 14.69 points or 0.75% to 1,982.50, Taiwan Weighted increased 24.46 points or 0.3% to 8,156.29 and Nikkei 225 increased 348.54 points or 2.15% to 16,564.57, while Hang Seng decreased 36.23 points or 0.18% to 20,120.58, Jakarta Composite decreased 2.58 points or 0.05% to 4,746.73 and Shanghai Composite decreased 1.72 points or 0.06% to 2,830.39.