Benchmarks continue lackluster trade in late noon session

Indian equity indices continued lackluster trade in late noon session, hovering in negative territory on global pessimism and in absence of any buying interest. Sentiments remained down beat with the report that the gross non-performing assets (GNPAs) of the public sector banks increased Rs 2.16 lakh crore in 2013-14 to Rs 4.76 lakh crore in 2015-16. The report also said that the top 100 borrowers of public sector banks owe nearly Rs 14 lakh crore to them. Weak global cues also dampened the domestic sentiment. European stocks were trading lower as global investors remained cautious considering the timing of the next interest rate hike by the US Federal Reserve as well as the outlook for oil prices.

Back home, selling was broad based with both mid cap and small cap indices were trading down by over 0.90%. Most of the sectoral indices were trading in negative territory with Oil & Gas as the top losing indices down by around 2.10%. Investors were also selling in Auto, PSU, Consumer Durables and bank stocks. In scrip specific development, Tata Chemicals rose as much as 13.27 per cent to hit fresh 52-week high of Rs 524.70 after the company announced sale of its urea business to Yara India for Rs 2,670 crore.

The BSE Sensex is currently trading at 27801.80, down by 283.36 points or 1.01% after trading in a range of 27783.56 and 28143.28. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.97%, while Small cap index was down by 0.96%.

The losing sectoral indices on the BSE were Oil & Gas down by 2.10%, Auto down by 1.50%, Bankex down by 1.35%, PSU down by 1.25% and Consumer Durables down by 1.24%.

The top gainers on the Sensex were Adani Ports & Special up by 7.51%, TCS up by 0.90% and Coal India up by 0.31%. On the flip side, Lupin down by 3.74%, ICICI Bank down by 2.20%, Tata Motors down by 2.19%, Reliance Industries down by 2.17% and Maruti Suzuki down by 1.76% were the top losers.

Meanwhile, to ensure higher compensation to employees in case of industrial accidents, the Lok Sabha has unanimously passed the Employees Compensation (Amendment) Act 2016. Labour and Employment Minister Bandaru Dattatreya has said that the government was committed to ensure protection of jobs, wages, social security and fair wages to workers.

The bill provides for higher compensation in case an employee is injured in industrial accident and has a provision for hefty penalty in case of violation by employers. The new legislation raises compensation to Rs 50,000 to 1 lakh to employees and their dependents in the event of injury in industrial accidents, including occupational diseases. Earlier this compensation was Rs 5,000.

Besides, Rs 50,000 compensation, there will be 'penalty for failure to display the Act' by the employers. The Bill says that wherever an establishment or factory is there, an employer has to inform the employee of his right to compensation under the Act. Such information must be given in writing (in English, Hindi or the relevant official language) at the time of employing him.

Dattatreya has said that a large number of organised workforces will be benefited by it. He further said that the government has also increased the minimum pension from Rs 350 crore to Rs 1000 crore and has launched a National Career Service Portal, in which 9 lakh people have registered.

The CNX Nifty is currently trading at 8587.55, down by 90.70 points or 1.05% after trading in a range of 8576.00 and 8690.10. There were 5 stocks advancing against 46 stocks declining on the index.

The top gainers on Nifty were Adani Ports &Special up by 7.57%, TCS up by 0.93%, Zee Entertainment up by 0.77%, Coal India up by 0.31% and Yes Bank up by 0.13%. On the flip side, Grasim Industries down by 6.14%, Ambuja Cement down by 4.03%, Lupin down by 3.84%, Idea Cellular down by 2.88% and ACC down by 2.65% were the top losers.

Asian market were trading most in green; FTSE Bursa Malaysia KLCI increased 0.35 points or 0.02% to 1,672.06, KOSPI Index surged 0.86 points or 0.04% to 2,044.64, Hang Seng jumped 26.82 points or 0.12% to 22,492.43, Taiwan Weighted increased 45.34 points or 0.5% to 9,200.42. On flip side; Nikkei 225 decreased 29.85 points or 0.18% to 16,735.12, Jakarta Composite was down 22.95 points or 0.42% to 5,417.34, Shanghai Composite declined 6.93 points or 0.23% to 3,018.75.

European markets were trading in red; Germany’s DAX decreased 15.35 points or 0.14% to 10,677.55, UK’s FTSE 100 decreased 9.45 points or 0.14% to 6,841.85, France’s CAC decreased 7.44 points or 0.17% to 4,460.63.