Benchmarks continue to trade in red

Indian markets continue to trade lower with more than half percent loss in late morning session due to profit-booking by investors amid weak Asian cues. Sentiment remained cautious ahead of industrial production data for April due tomorrow. Further, there were some worries in the market with recent rise in crude oil prices that will adversely impact India's fiscal deficit situation and will increase fuel price inflation, as India imports about 80% of its crude requirements. However, the losses remained capped as the rupee trade at a fresh four-week high of 66.59 against the US dollar in early trade today on sustained selling of the American currency by banks and exporters. Besides, foreign portfolio investors (FPIs) bought shares worth a net Rs 529.16 crore yesterday, 8 June 2016. 

On global front, Asian markets were trading mostly lower on Thursday amid continuing uncertainty over the pace of political events in coming weeks, including the U.K. referendum later this month.

Back home, shares of Hindustan Copper increased over 11 per cent after copper prices hit a two-week high in global markets.  Shares of NTPC too rose 3 per cent after the company laid out plans for Rs 1,000 crore investment in Karnataka.

The BSE Sensex is currently trading at 26821.70, down by 198.96 points or 0.74% after trading in a range of 26809.09 and 26994.91. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.07%, while Small cap index was up by 0.22%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 1.17%, Metal up by 1.09%, PSU up by 1.03%, Power up by 0.76%, Consumer Durables up by 0.43%, while IT down by 1.98%, TECK down by 1.60%, FMCG down by 1.10%, Auto down by 0.40%, Capital Goods down by 0.38% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.89%, Reliance Industries up by 1.71%, ONGC up by 1.39%, Tata Steel up by 0.89% and GAIL India up by 0.88%. On the flip side, Infosys down by 3.79%, Hindustan Unilever down by 1.96%, Dr. Reddys Lab down by 1.93%, ITC down by 1.75% and Hero MotoCorp down by 1.58% were the top losers.

Meanwhile, expressing his confidence about the Indian growth story, Reserve Bank of India (RBI) Governor Raghuram Rajan has said that India's growth is picking up further with 'more animal spirit' and good monsoon and public investment picking up pace, but also said that there will be need for more private investment. He added that Indian economy is capable of growing at a faster pace and is on the right direction though 'true numbers' of GDP could be 1 per cent up or down.

Stressing on the need for private investment to pick up for faster economic growth, Rajan said even though the economy is moving in right direction there is more work to be done before celebrating, which can be done only if we see private investment strongly back on track and I think we are capable of much stronger growth that we have right now.

Commenting of the controversy surrounding the GDP numbers based on new calculations, he said the change has been broadly in the positive direction and the statisticians have done as good a job as they can and economic growth is significantly high as costs have come down. Recent GDP numbers pegged India's growth for 2015-16 at 7.6 per cent the fastest among the world's major economies.

The CNX Nifty is currently trading at 8219.35, down by 53.70 points or 0.65% after trading in a range of 8215.95 and 8273.35. There were 25 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were NTPC up by 1.92%, Hindalco up by 1.74%, Reliance Industries up by 1.72%, BPCL up by 1.60% and Tata Power up by 1.33%. On the flip side, Infosys down by 3.67%, Dr. Reddys Lab down by 2.05%, Hindustan Unilever down by 1.94%, ITC down by 1.83% and HDFC down by 1.69% were the top losers.

Most of the Asian markets were trading in red barring the FTSE Bursa Malaysia KLCI which was up by1.96 points or 0.12% to 1,659.81.

On the other hand, Nikkei 225 declined by 160.33 points or 0.95% to 16,670.59, Jakarta Composite was lower by 14.64 points or 0.3% to 4,901.42 and KOSPI Index was down by 2.91 points or 0.14% to 2,024.17