Benchmarks continue weak trade; Capital Goods, Bankex drag

Indian equity benchmarks continued their weak trade in the afternoon session mainly due to selling in shares of capital goods, banks, realty, IT and TECK sectors, amid mixed Asian cues. Investors remained on sidelines ahead of a speech by U.S. Federal Reserve Chair Janet Yellen in Jackson Hole, Wyoming later in the day. However, losses remained capped with the Reserve Bank of India (RBI) announcing a raft of measures to boost investor participation and market liquidity in both the corporate bond and currency markets. Further, gains in Consumer Durables, Oil & Gas, Auto and FMCG stocks have restrained the market to extend losses. In scrip specific development, Natco Pharma gained half a percent after the U.S. Patent and Trademark Office (PTO) ruled in favor of its marketing partner Mylan with regard to patent claims pertaining to multiple sclerosis drug Copaxone.

On the global front, Asian markets were trading mixed ahead of U.S. Federal Reserve Chairwoman Janet Yellen's speech for cues on the timing of the next policy rate hike. Back home, the BSE Sensex is currently trading at 27780.48, down by 55.43 points or 0.20% after trading in a range of 27767.06 and 27935.88. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.09%, while Small cap index was down by 0.08%.

The gaining sectoral indices on the BSE were Consumer Durables up by 0.93%, Oil & Gas up by 0.75%, Auto up by 0.63% and FMCG up by 0.04%,  while Capital Goods down by 1.13%, Bankex down by 0.86%, Realty down by 0.70%, IT down by 0.36% and TECK down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were GAIL India up by 2.73%, Tata Motors up by 1.85%, Reliance Industries up by 1.18%, Cipla up by 1.06% and Mahindra & Mahindra up by 0.40%. On the flip side, Larsen & Toubro down by 1.77%, Adani Ports &Special down by 1.74%, Wipro down by 1.56%, SBI down by 1.14% and ICICI Bank down by 1.05% were the top losers.

Meanwhile, in April-July period of the current fiscal, export of gems and jewellary increased by 11.66% to $11.40 billion from $10.21 billion in same period of last fiscal. The rise in first four months was mainly supported by cut and polished diamond exports, as it rose by 5.22% to $7.25 billion during the period from $6.89 billion a year ago.

According to the data from Gems and Jewellery Export Promotion Council (GJEPC), demand for gems and jewellary is gradually picking up in markets like the US, which is helping in recording growth in exports in the sector. Further, exports of silver jewellery grew by 51% to $1.30 billion during the four months period of this fiscal. However, shipments of gold jewellery decreased by 26.47% to $1 billion during the period under review, from $1.36 billion a year ago and export of gold medallion and coins felled by 9.51% to $1.48 billion.

On other hand, import of rough diamonds rose by 13.27% to $6 billion and gold bars grew by 40% to $1.72 billion in April-July 2016. Gold imports more than halved to $1.08 billion in the month. Further, after rising for the first time in 18 months in June, exports shrank again in July, contracting 6.84% due to decline in shipments of engineering goods and petroleum products. The government is hoping that incentives such as 3% interest subsidy and enhanced rate for duty drawback would further help to control the decline in exports as gems and jewellery contribute about 14% to the country's overall exports.

The CNX Nifty is currently trading at 8575.80, down by 16.40 points or 0.19% after trading in a range of 8570.40 and 8622.95. There were 20 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were GAIL India up by 2.99%, Bharti Infratel up by 1.87%, Tata Motors - DVR up by 1.85%, Tata Motors up by 1.84% and Cipla up by 1.30%. On the flip side, Bank of Baroda down by 1.70%, Larsen & Toubro down by 1.66%, Yes Bank down by 1.66%, Indusind Bank down by 1.61% and Adani Ports &Special down by 1.51% were the top losers.

Asian markets were trading mixed, FTSE Bursa Malaysia KLCI increased 1.61 points or 0.1% to 1,681.91, Shanghai Composite rose 2.99 points or 0.1% to 3,071.32, Taiwan Weighted increased 16.25 points or 0.18% to 9,131.72 and Hang Seng was up by 69.66 points or 0.31% to 22,884.61. On the flip side, Nikkei 225 decreased 195.24 points or 1.18% to 16,360.71, Jakarta Composite declined 18.24 points or 0.33% to 5,435.87 and KOSPI Index was down by 5.42 points or 0.27% to 2,037.50.