Markets continue to real under pressure in early noon session

Indian equity bourses continue to real under pressure in early noon session on account of sustained selling by funds and retail investors amid weak cues from the Asian markets, as EU referendum decisively favours 'leave' campaign. The camp in favour of Britain’s exit from the EU was leading by 4% points over the Remain camp with over 70% of results declared in the referendum as the results were for ‘Brexit’. Sentiment remained down beat with India Meteorological Department’s report that the monsoon rains in India were 4% below average in the week ending June 22, 2016, narrowing the deficit since the season started on June 8. The June-September monsoon rains have remained 18% low so far. Meanwhile, Economic Affairs Secretary Shaktikanta stated that India has the firepower to withstand Britain's likely exit from the European Union, will accelerate growth programmes to offset its impact and does not expect its foreign trade to suffer. In scrip specific development, share of Tata Motors plunged over 11% after its overseas arm Jaguar Land Rover, Britain’s biggest car maker, which generates more than 90% of profits for Tata Motors, could risk a Pound 1 billion drop in profits by end of this decade, in case of Brexit, as per an internal assessment prepared by JLR.

The BSE Sensex is currently trading at 26023.44, down by 978.78 points or 3.62% after trading in a range of 25944.53 and 26367.48. There were 0 stocks advancing against 30 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 3.09%, while Small cap index down by 3.55%.

The top losing sectoral indices on the BSE were Realty down by 6.03%, Metal down by 5.89%, Auto down by 5.50%, Bankex down by 4.93% and Capital Goods down by 4.59%, while their were no gainers on the sectoral front.

The top losers on the Sensex were Tata Motors down by 11.48%, Tata Steel down by 9.08%, ICICI Bank down by 6.58%, Axis Bank down by 5.70% and Larsen & Toubro down by 5.42%, while they were no gainers on the Sensex.

Meanwhile, India Inc has raised $1.32 billion from overseas markets in May 2016, down 45% as compared to $2.39 billion in May 2015. As per the Reserve Bank of India (RBI) data, of the total borrowings during the month, which included external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), $845.72 million were raised via approval process, while rest of $472.69 million came through the automatic route by a total of 50 borrowers.

Further, out of the total borrowers, four raised money through approval route and remaining via automatic route. Under the approval route, HDFC raised $375 million for on-lending, Reliance Industries $190.72 million for refinancing of earlier ECB, Adani Ports $150 million for port projects and Dewan Housing Finance Corp raised $ 130 million for on-lending.

For automatic route, major borrowers included Sintex Industries which borrowed $110 million for modernisaiton works, Ultratech Cement $50 million for refinancing of earlier ECB and Exim Bank raised $50 million on lending.

The CNX Nifty is currently trading at 7961.75, down by 308.70 points or 3.73% after trading in a range of 7938.60 and 8058.45. There were 0 stocks advancing against 51 stocks declining on the index.

The top losers on Nifty were Tata Motors down by 11.62%, Tata Motors - DVR down by 9.85%, Tata Steel down by 9.21%, Hindalco down by 8.51% and ICICI Bank down by 6.64%, while they were no gainers on the Nifty.

Asian markets were trading lower; Nikkei 225 decreased 1318.85 points or 8.12% to 14,919.50, Hang Seng decreased 977.94 points or 4.69% to 19,890.40, Taiwan Weighted decreased 199.69 points or 2.3% to 8,476.99, Jakarta Composite decreased 110.94 points or 2.28% to 4,763.37, KOSPI Index decreased 61.47 points or 3.09% to 1,925.24, Shanghai Composite decreased 27.84 points or 0.96% to 2,864.12 and FTSE Bursa Malaysia KLCI decreased 22.66 points or 1.38% to 1,617.32.