Markets continue to trade in negative territory in afternoon session

Indian equity benchmarks continued weak trade in afternoon session on account of heavy selling in Metal, Realty, Capital Goods, Auto and Banking stocks. Further, weak trend in the Asian region and depreciation in rupee value also weighed on the sentiments. The sentiments were under pressure amid the global turmoil after a prominent US policy maker hinted at a rate hike by the US Fed in the near future. Investors also turned cautious ahead of macroeconomic data IIP for July scheduled to be released today after the market hours. In scrip specific development, Unitech plunged almost 5 percent after the Delhi High Court ordered the company to open escrow accounts and use the money deposited in it solely for completing its delayed housing projects.

On the global front, Asian markets were trading deep into red on increased risk aversion as comments from some Federal Reserve officials reignited worries about a near-term US interest rate hike. Back home, the BSE Sensex is currently trading at 28411.84, down by 385.41 points or 1.34% after trading in a range of 28251.31 and 28481.11. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 2.19%, while Small cap index was down by 1.42%.

The gaining sectoral indices on the BSE were IT up by 1.09% and TECK up by 0.54%, while Metal down by 2.86%, Realty down by 2.82%, Capital Goods down by 2.49%, Auto down by 2.41% and Bankex down by 2.32% were the losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.80%, Reliance Industries up by 0.60%, TCS up by 0.33% and Wipro up by 0.04%. On the flip side, Tata Steel down by 3.81%, Adani Ports &Special down by 3.48%, Axis Bank down by 3.33%, SBI down by 3.30% and Hero MotoCorp down by 3.06% were the top losers.

Meanwhile, giving more freedom to states to spend funds under Centrally Sponsored Schemes (CSS) to meet local developmental requirements, the government has announced new guidelines called flexi-fund for states with aim to meet local needs and requirements and pilot innovation to improve efficiency. As per the new guidelines, flexi-funds in each CSS have been increased from the current 10 per cent to 25 per cent for states and 30 per cent for Union Territories.

Now, states can use the fund to undertake mitigation or restoration activities in case of natural calamities or to satisfy local requirements in areas affected by internal security disturbances. It also stated that states if they want can set aside 25 per cent of any CSS as flexi-fund to be spent on any sub-scheme or component or innovation that is in line with the overall aim and objective of the approved Scheme.

The guidelines however said that the state governments will have to constitute a state-level sanctioning committee to avail of the flexi-fund facility. The flexi-fund facility is not for CSS which emanate from legislation, like MNREGA.

Based on the recommendations of the sub-group of chief ministers and consultations with stakeholders, Niti Aayog had issued instructions for rationalisation of CSS. The rationalisation is expected to ensure optimum utilisation of resources with better outcome through area-specific interventions. This would also ensure wider reach of benefits to target groups. Centrally Sponsored Schemes (CSS) are schemes that are implemented by State governments of India but are largely funded by the Central Government with a defined State Government share.

The CNX Nifty is currently trading at 8740.60, down by 126.10 points or 1.42% after trading in a range of 8699.40 and 8746.95. There were 6 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Infosys up by 1.88%, Tech Mahindra up by 1.63%, HCL Tech. up by 1.19%, Reliance Industries up by 0.53% and TCS up by 0.34%. On the flip side, Hindalco down by 5.68%, Yes Bank down by 5.00%, Bank of Baroda down by 4.71%, Adani Ports &Special down by 3.82% and Tata Steel down by 3.80% were the top losers.

Asian markets were trading deep into the red, Hang Seng decreased 655.22 points or 2.72% to 23,444.48, Nikkei 225 declined 292.84 points or 1.73% to 16,672.92, Taiwan Weighted was down by 106.63 points or 1.18% to 8,947.06, Jakarta Composite dropped 89.16 points or 1.66% to 5,281.92, Shanghai Composite decreased 61.74 points or 2.01% to 3,017.12, KOSPI Index declined 46.39 points or 2.28% to 1,991.48 and FTSE Bursa Malaysia KLCI declined 4.94 points or 0.29% to 1,686.44.