Markets extend losses in noon deal

Markets continue to remain in red, extending their losses due to profit-booking by investors despite firm Asian cues. Investors remain on sidelines ahead of Thursday's British vote, as well as Federal Reserve chief Janet Yellen's two-day testimony before Congress starting later on Tuesday, she might offer clues on the timing of the next US interest rate increase. On global front, Asian markets were trading mostly in green on growing expectations that Britain will vote to stay in the European Union. China’s stocks rose for a third day, sending the benchmark index toward its longest stretch of gains in more than two months. Back home, the rupee depreciation too was weighing down the markets, rupee was down by 11 paise to 67.42 against the US dollar due to sustained demand for the American currency from importers amid foreign fund outflows. Selling pressure was seen on IT, FMCG, capital goods, realty, banking and power stocks.

In scrip specific development, Supreme Infrastructure surged over 5 per cent on Tuesday after the Mumbai-based road construction company bagged two orders worth Rs 398 crore from Navi Mumbai International Airport for land development work. Shares of Balaji Telefilms gained after the company informed bourses that ‘Udta Punjab’ has grossed Rs 53.80 crore in its opening weekend worldwide, with India contributing Rs 45.40 crore and international markets contributing Rs 8.40 crore.

The BSE Sensex is currently trading at 26792.93, down by 73.99 points or 0.28% after trading in a range of 26754.60 and 26925.64. There were 9 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.15%, while Small cap index was up by 0.20%.

The top gaining sectoral indices on the BSE were Auto up by 0.33%, Metal up by 0.13%, PSU up by 0.02%, Oil & Gas up by 0.01% while, Power fell by 0.80%, Realty down by 0.59%, Bankex down by 0.40%, TECK down by 0.35%, Capital Goods down by 0.33% were the losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 0.98%, Coal India up by 0.83%, Bajaj Auto up by 0.69%, ONGC up by 0.63% and Dr. Reddys Lab up by 0.56%. On the flip side, NTPC down by 1.53%, Hindustan Unilever down by 1.07%, GAIL India down by 1.06%, Axis Bank down by 0.94% and Power Grid Corpn. down by 0.83% were the top losers.

Meanwhile, the World Bank has said that to sustain 7.6 per cent growth in 2016-17, which would accelerate to 7.7 per cent in 2017-18 and 7.8 per cent in 2018-19, India needs to activate 'stalled engines' including agricultural growth and rural demand, trade and private investment, while ensuring demand from urban households and public investments.

It also said that to remain on this path and sustain 7.6 percent growth in 2016-17, the challenge for the Indian economy is to activate the stalled engines, pointing that India’s economy expanded at 7.6% in FY16 from an average of 6.5% during FY13-FY15, even as several growth engines stalled: agriculture faced a second consecutive drought year, rural households were under stress, private investments flat-lined, and exports plummeted. The working engines demand from urban households and public investments propelled the economy to a higher growth path.

World Bank's country director in India Onno Ruhl has said that there are good reasons for confidence in India's near-term prospects, however, a pickup in investments is crucial to sustain economic growth in the longer term. He added that the recently approved bankruptcy code is helpful in this regard, and once it is implemented it will help unleash the productivity that Indian firms need in order to create jobs, and become globally competitive.

He further said that implementation of the goods and services tax, increased participation of women in the labour force, improvement in the business environment and increasing private investment will be some of the key measures India will have to take to reach double-digit growth. While manufacturing, services, urban consumption keep economy on growth path, the Update highlighted the need to strengthen governance and balance sheets of banks. However, he also cautioned that the most significant near and medium-term risks stem from the banking sector and its ability to finance private investment, which continues to face several impediments in the form of excess global capacity, regulatory and policy challenges, in addition to corporate debt overhang.

The CNX Nifty is currently trading at 8218.50, down by 20.00 points or 0.24% after trading in a range of 8202.15 and 8257.25. There were 18 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 1.94%, Mahindra & Mahindra up by 1.14%, Bharti Infratel up by 1.07%, Dr. Reddys Lab up by 0.72% and Tata Motors - DVR up by 0.69%. On the flip side, Tata Power down by 2.07%, NTPC down by 1.88%, BHEL down by 1.33%, GAIL India down by 1.31% and Tech Mahindra down by 1.30% were the top losers.

FTSE Bursa Malaysia KLCI increased 1.42 points or 0.09% to 1,635.65.KOSPI Index rise by 1.58 points or 0.08% to 1,982.70.Jakarta Composite rose to 21.9 points or 0.45% to 4,885.43.Taiwan Weighted increased 58.93 points or 0.68% to 8,684.85.Hang Seng up by 129.24 points or 0.63% to 20,639.44. Nikkei 225 increased 203.81 points or 1.28% to 16,169.11. Shanghai Composite decreased 10.25 points or 0.35% to 2,878.56