Benchmarks erase all gains; starts trading in red

Indian equity markets erased all the early gains and are now trading in red in the late afternoon session on account of selling in frontline blue chip counters. However, the losses remained restricted as the government is going to table the Constitutional Amendment Bill for introduction of GST in Rajya Sabha for consideration and passage this week. Traders also took some encouragement with a survey of industry body Assocham stating that India Inc expects growth in sales and profitability to pick up by the year-end in sync with an uptick in the big macro picture. In scrip specific development, Nestle India dropped over 4 per cent even as the company on Friday posted a net profit of Rs 230.84 crore for the June quarter.

On the global front, Asian markets were trading mostly in green after disappointing US economic growth data reduced expectations of a rate hike by the US Federal Reserve in the next few months.

The BSE Sensex is currently trading at 28102.68, up by 50.82 points or 0.18% after trading in a range of 28061.20 and 28284.85. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.52%, while Small cap index was up by 0.40%.

The top gaining sectoral indices on the BSE were IT up by 1.13%, TECK up by 1.09%, Auto up by 0.96%, Metal up by 0.87% and Consumer Durables up by 0.45%, while Capital Goods down by 1.40% and Bankex down by 0.75% were the losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.92%, Maruti Suzuki up by 2.47%, Wipro up by 2.24%, Power Grid Corpn. up by 2.02% and Bajaj Auto up by 1.95%. On the flip side, ICICI Bank down by 3.54%, Larsen & Toubro down by 2.76%, Lupin down by 0.84%, HDFC Bank down by 0.40% and Reliance Industries down by 0.25% were the top losers.

Meanwhile, in order to promote ease of doing business for overseas investors, the government is working to align the FDI policy with the National Industrial Classification (NIC) code. As there is lack of clarity with regard to the code and the FDI policy, the Department of Industrial Policy and Promotion (DIPP) has asked the Department of Economic Affairs to examine the draft on mapping of NIC code prepared by it. 

To provide greater clarity and simplicity to foreign investors, the Commerce and Industry Ministry has said that Aligning NIC code with the FDI policy will smoothen implementability of the liberalized FDI policy regime. It will also remove ambiguity in the interpretation of NIC code and its linkage with the policy. The DIPP which is the nodal agency on FDI policy is working on this issue as it needs to be done with utmost caution.

As per the exercise, codification would be done with the NIC code book indicating against each entry as to whether FDI is allowed therein, and if so, it is on automatic or approval route along with para number of FDI policy. After finalising the draft, the ministry is expected to seek Cabinet’s approval on the same. All the economic activities are classified as per the NIC code. The classification is necessary for seeking industrial licences and submitting industrial entrepreneurs’ memorandum. 

The CNX Nifty is currently trading at 8655.35, up by 16.85 points or 0.20% after trading in a range of 8644.30 and 8711.30. There were 35 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were TCS up by 3.04%, Hindalco up by 2.32%, Maruti Suzuki up by 2.15% ,Wipro up by 2.13% and Power Grid Corpn. up by 1.99%. On the flip side, ICICI Bank down by 3.77%, Larsen & Toubro down by 2.70%, Kotak Mahindra Bank down by 1.60%, Tech Mahindra down by 1.38% and Bank Of Baroda down by 1.35% were the top losers.

Asian markets were trading mostly in green, FTSE Bursa Malaysia KLCI increased 10.2 points or 0.62% to 1,663.46, KOSPI Index increased 13.42 points or 0.67% to 2,029.61, Nikkei 225 increased 66.5 points or 0.4% to 16,635.77, Taiwan Weighted increased 96.3 points or 1.07% to 9,080.71, Jakarta Composite increased 121.31 points or 2.33% to 5,337.31 and Hang Seng increased 312.45 points or 1.43% to 22,203.82. On the flip side, Shanghai Composite decreased 27.39 points or 0.92% to 2,951.95.