Benchmarks continue lackluster trade in green

Indian equity benchmarks were gyrating in a narrow band in green in the late morning session. The sentiments were on optimistic note as the Index of Industrial Production (IIP) improved to 2.1% in June as compared to 1.2% in May. Some support also came as the Indian rupee was trading marginally higher against the US dollar, tracking the gains in its Asian peers and ahead of the wholesale price inflation (WPI) data scheduled today at afternoon. Investors however took note of the Consumer Price Index (CPI) which rose for fourth straight month to 6.07% in July as compared to 5.76% in June 2016. Traders were seen piling position in Oil & Gas, Capital Goods and PSU stocks while selling was witnessed in IT, TECK and Consumer Durables sector stocks. In scrip specific development, Infosys was trading under pressure following Royal Bank of Scotland’s decision to cancel a project to set up a separate bank in the United Kingdom. RBS announced last week that it will not pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), for which Infosys was a key technology partner.

On the global front, Asian markets were trading mostly in green, extending their gains so far this year to almost 10 percent, helped by a jump in oil prices and investor expectations of continued easy monetary policy around the globe. Japan’s Ministry of Finance is negotiating with the country’s major banks to lend to the government at a zero interest rate in auctions beginning in October or November. Back home, the NSE Nifty and BSE Sensex were trading above the psychological 8,650 and 28,100 levels respectively. The market breadth on BSE was negative in the ratio of 1012:1155, while 105 scrips remained unchanged.

The BSE Sensex is currently trading at 28174.40, up by 22.00 points or 0.08% after trading in a range of 28090.85 and 28199.10. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.58%, while Small cap index was up by 0.13%.

The gaining sectoral indices on the BSE were Oil & Gas up by 1.22%, Capital Goods up by 0.79%, PSU up by 0.68%, Power up by 0.66% and FMCG up by 0.51%, while IT down by 0.75%, TECK down by 0.75%, Consumer Durables down by 0.73%, Realty down by 0.72% and Auto down by 0.05% were the losing indices on BSE.

The top gainers on the Sensex were Adani Ports & Special Economic Zone up by 5.71%, Power Grid Corporation up by 2.30%, Cipla up by 2.24%, Larsen & Toubro up by 1.10% and Lupin up by 0.84%.

On the flip side, Infosys down by 1.51%, Axis Bank down by 1.33%, Tata Motors down by 1.17%, Sun Pharma down by 0.97% and Wipro down by 0.46% were the top losers.

Meanwhile, overseas investments or outward foreign direct investments by the Indian firms in the month of July rose by 60.8% to $ 2.30 billion from $1.43 billion in the same month last fiscal. According to the RBI data, the overseas investments in the month of June 2016 were at $1.86 billion.

The total outward foreign direct investment of $2.30 billion was in the form of equity, loan and issue of guarantee. Of the total investment equity, loan and issue of guarantee stood at $916.07 million, $489.42 million and $892.93 million respectively in the month of July 2016, as compared to $336.38million, $211.38 million and $881.60 million respectively during July 2015. 

The major investors overseas during the month included Sanmar Group International, invested $ 962.23 million in a wholly owned unit in Switzerland, and New Delhi Television (NDTV) which invested $ 111.13 million in a UK-based wholly owned subsidiary. Vedanta and Vadinar Oil Terminal invested $ 610 million and $ 100 million respectively in their wholly-owned and joint venture firms in Mauritius.

The CNX Nifty is currently trading at 8673.35, up by 1.20 points or 0.01% after trading in a range of 8647.10 and 8682.35. There were 30 stocks advancing against 21 stocks declining on the index.

The top gainers on Nifty were Adani Ports & Special Economic zone up by 5.13%, BPCL up by 3.19%, Cipla up by 2.64%, Power Grid Corporation up by 2.25% and Hindalco up by 2.12%.

On the flip side, Bharti Infratel down by 4.36%, Aurobindo Pharma down by 1.73%, Grasim Industries down by 1.57%, Tata Motors down by 1.48% and Axis Bank down by 1.35% were the top losers.

The Asian markets were trading mostly in green; KOSPI Index increased 2 points or 0.1% to 2,052.47, FTSE Bursa Malaysia KLCI increased 8.44 points or 0.5% to 1,698.77, Hang Seng increased 34.1 points or 0.15% to 22,966.61 and Jakarta Composite increased 45.25 points or 0.85% to 5,365.81.

On the other hand, Nikkei 225 decreased 126.38 points or 0.75% to 16,743.18, Taiwan Weighted decreased 32.99 points or 0.36% to 9,115.52 and Shanghai Composite decreased 16.24 points or 0.52% to 3,108.95.