Benchmarks continue weak trade in afternoon session

Indian equity markets continued their weak trade in the afternoon session on a broad based selling amid weak global cues after China's exports unexpectedly declined. The sentiments were under pressure on the report that Industrial production data contracted once again for the month of August. IIP dipped 0.7 percent in August, due to a slump in manufacturing and mining, in the manufacturing space, capital goods brought about the maximum fall. Further, Depreciation in the rupee value against dollar also weighed on the sentiments. Traders were taking cautious bet ahead of monthly inflation data based on consumer price index (CPI) for September due later in the day and wholesale price index (WPI) due on Friday. The downside was however capped with S&P Global Ratings, calling GST as the most important structural reform till date by the Modi government and stating that the passage of the indirect tax law gives it additional conviction of India clocking 8 percent growth in the next few years. In the scrip specific development, IL&FS Engineering and Construction Co rose after the company got Rs 162.58 crore order from GAIL for laying and constriction of pipeline.

On the global front, Asian markets were trading mostly in red as weak Chinese trade data reinforced worries about the world's number two economy, while Federal Reserve minutes fanned expectations of a US rate hike before the year's end. Back home, the BSE Sensex is currently trading at 27758.53, down by 323.81 points or 1.15% after trading in a range of 27748.72 and 28042.62. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.32%, while Small cap index was down by 1.31%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.00%, while Realty down by 2.02%, Consumer Durables down by 1.98%, Metal down by 1.73%, Bankex down by 1.54% and Power down by 1.44% were the losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.04%, Infosys up by 1.60%, Cipla up by 1.31%, Asian Paints up by 0.56% and Hero MotoCorp up by 0.35%. On the flip side, Tata Motors down by 3.68%, Adani Ports &Special down by 3.39%, HDFC down by 3.01%, ICICI Bank down by 2.60% and Reliance Industries down by 2.18% were the top losers.

Meanwhile, government has come out with three more set of draft regulations under the Insolvency and Bankruptcy Code 2016, including liquidation of insolvent corporate persons, insolvency resolution process for corporate persons and application to judicial authority.

The government has till now notified six draft regulations under the code.The new set of draft rules for insolvency resolution process for corporate persons specify the duties and power of the interim resolution professional. The draft rules for liquidation of insolvent corporate persons require an insolvency professional appointed as a liquidator to conduct the process of liquidation involving preparation of preliminary and progress reports during the procedure. The final report shall form part of the application for the dissolution to the Adjudicating Authority.

As part of the process for implementing the Insolvency and Bankruptcy Code, the government has already set up the Insolvency and Bankruptcy Board of India (IBBI). Draft norms have been put up for stakeholder feedback, the last date for which is October 31,2016  and the rules will be finalized after taking into consideration the views of the stakeholders. Recently, the corporate affairs ministry issued draft regulations pertaining to registration of insolvency professionals, agencies and model bye-laws. A working group of experts, set up by the ministry, has prepared these regulations.

The CNX Nifty is currently trading at 8605.35, down by 103.45 points or 1.19% after trading in a range of 8605.05 and 8681.55. There were 7 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.21%, Infosys up by 1.61%, Cipla up by 1.36%, Ultratech Cement up by 0.68% and BPCL up by 0.64%. On the flip side, Zee Entertainment down by 4.06%, Tata Motors down by 3.91%, Bank of Baroda down by 3.61%, Adani Ports &Special down by 3.41% and HDFC down by 3.09% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 307 points or 1.31% to 23,100.05, Nikkei 225 declined 65.76 points or 0.39% to 16,774.24, Taiwan Weighted was down by 33.43 points or 0.36% to 9,219.17, KOSPI Index decreased 18.29 points or 0.9% to 2,015.44, FTSE Bursa Malaysia KLCI slipped 3.69 points or 0.22% to 1,663.34 and Jakarta Composite decreased 3.34 points or 0.06% to 5,361.27. On the flip side, Shanghai Composite increased 1.48 points or 0.05% to 3,059.97.