Markets trade flat with negative bias in early noon session

Indian equity benchmarks were trading flat with negative bias in early noon session, as investors remained cautious ahead of RBI’s monetary policy review on Tuesday. Meanwhile, with crude oil price touching seven month high of $ 50 a barrel, Finance Minister Arun Jaitley has said India can handle the current level but higher rates will impact the economy and lead to inflationary pressure. India, which depends on imports to meet 80% of its oil needs, will have to spend $ 1.36 billion more for every dollar per barrel increase in crude oil prices, while also see surge in inflation. Moreover, market participants were watching out for the performance review meeting of PSU banks today. However, losses were capped with the foreign funds inflows and appreciation in the Indian rupee against dollar. In scrip specific development, share of Biocon was trading higher after the company and global pharma major Mylan Inc confirmed the efficacy and safety of MYL-1401O, a proposed biosimilar trastuzumab co-developed by the firms, in comparison to a branded cancer drug.

On the global front, Asian markets were trading mostly higher and the dollar wallowed close to its lowest in nearly a month after US non-farm payrolls showed the slowest job growth in more than five years, quashing expectations for a near-term US interest rate hike.

Back home, the BSE Sensex is currently trading at 26824.50, down by 18.53 points or 0.07% after trading in a range of 26807.90 and 26901.42. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.09%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were Realty up by 0.87%, Capital Goods up by 0.36%, Bankex up by 0.15%, FMCG up by 0.03% and  Metal up by 0.01%, while Consumer Durables down by 0.86%, TECK down by 0.45%, Oil & Gas down by 0.32%, IT down by 0.24% and PSU down by 0.17% were the losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.89%, GAIL India up by 1.32%, SBI up by 1.27%, Cipla up by 0.89% and HDFC Bank up by 0.60%. On the flip side, Maruti Suzuki down by 2.14%, Bharti Airtel down by 1.86%, Axis Bank down by 1.29%, Coal India down by 1.26% and Adani Ports &Special down by 0.71% were the top losers.

Meanwhile, with an aim to take their relationship to new heights, India and Qatar have signed seven agreements including one to check money laundering and another on terrorism financing, and decided to move beyond the trading relationship and get into strategic investments by signing a pact to woo foreign investment in the infrastructure sector too.

A MoU was signed between the Finance Intelligence Unit-India (FIU) and Qatar Financial Information Unit (QFIU) to share intelligence on illegal movement of money, termed as 'hawala'. Under this pact, the two sides agreed to exchange financial intelligence to combat terrorism financing and other economic offences. Besides, MoU was signed between Qatar Investment Authority and External Affairs Ministry for investment in National Investment and Infrastructure Fund (NIIF) between the two countries that would facilitate foreign investment from the gas-rich Gulf state.

Furthermore, an agreement was signed on cooperation and investment in areas of skill development and education, health, tourism and sports between the two countries. An agreement was also signed between the two countries on cooperation and mutual assistance in custom matters besides MoU on cooperation in tourism. Another MoU was signed on cooperation between India and Qatar in the field of health.

Talks were held between the Prime Minister Modi and Emir Sheikh Tamim Bin Hamad Al Thani for multi-sectoral partnership and strengthening of Indo-Qatar ties following which the agreements and Memorandums of Understanding (MoUs) were signed on the second day of the Prime Minister's visit to Qatar. The dignitaries also decided to constitute an inter-ministerial high-level joint committee to regularly review all bilateral matters, as well as regional and global issues of mutual interest.

The CNX Nifty is currently trading at 8212.30, down by 8.50 points or 0.10% after trading in a range of 8209.75 and 8234.70. There were 19 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 1.80%, Bank of Baroda up by 1.71%, Hindalco up by 1.66%, GAIL India up by 1.39% and SBI up by 1.22%. On the flip side, Maruti Suzuki down by 2.08%, Bharti Infratel down by 1.94%, Bharti Airtel down by 1.84%, Tech Mahindra down by 1.40% and BPCL down by 1.32% were the top losers.

Asian markets were trading mostly higher; KOSPI Index increased 0.73 points or 0.04% to 1,985.84, Taiwan Weighted increased 5.54 points or 0.06% to 8,597.11, FTSE Bursa Malaysia KLCI increased 8.74 points or 0.53% to 1,645.20, Hang Seng increased 9.24 points or 0.04% to 20,956.48 and Jakarta Composite increased 25.14 points or 0.52% to 4,879.06, while Nikkei 225 decreased 62.2 points or 0.37% to 16,580.03 and Shanghai Composite decreased 13.08 points or 0.45% to 2,925.60.