Markets continue to trade in red amid weak Asian cues

Key benchmark indices added losses to continue their weak trade in early afternoon session, on account of selling in frontline blue chip counters and taking cues from weak Asian markets. Sentiments were subdued on account of escalating geo-political tensions between the US and North Korea.  Some concerns also came with the report stating that India's retail inflation is expected to have picked up slightly in July after cooling in the previous three months, but likely remained well below the central bank's 4 percent medium-term target. Further, majority of the sectoral indices were trading in red. Sharp selling which was witnessed in Industrials and Auto stocks also dragged the major indices down. Meanwhile, Indian rupee dropped by another 13 paise to 63.96 against the US dollar on increased demand for the American currency from importers. In scrip specific development, Aurobindo Pharma was up by over one and half percent after entering into agreement to acquire 20% additional equity stake in Tergene Biotech.

On the global front, Asian markets were trading in red, as investors fretted about the latest flare-up of tensions between the United States and North Korea. Back home, the BSE Sensex is currently trading at 31680.54, down by 117.30 points or 0.37% after trading in a range of 31588.26 and 31756.27. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.88%, while Small cap index was down by 1.00%.

The top gaining sectoral indices on the BSE were IT up by 0.68%, TECK up by 0.48% and Metal up by 0.16%, while Industrials down by 1.95%, Auto down by 1.89%, Power down by 1.36%, Utilities down by 1.19% and Healthcare down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.55%, Tata Steel up by 1.24%, Hero MotoCorp up by 1.03%, HDFC up by 0.82% and ITC up by 0.50%. On the flip side, Tata Motors down by 7.65%, Tata Motors - DVR down by 7.41%, Sun Pharma down by 2.90%, Adani Ports & SEZ down by 1.50% and NTPC down by 1.27% were the top losers.

Meanwhile, agriculture export of India has decreased by 21.65% to $33.87 billion in the financial year 2016-17 from $43.23 billion in 2013-14. On the other side, the import of agricultural commodities (including plantation and marine products) during 2016-17 period increased to $25.09 billion from $15.03 billion in 2013-14.

Talking on the downfall in agricultural export, Commerce and Industry Minister Nirmala Sitharaman has said that the main reason behind this was the lower commodity prices in the international market, which has made the exports uncompetitive. She highlighted that during the past three years, the share of agricultural exports in total exports of the country has declined marginally and dropped to 12.26% in 2016-17 from 12.59% in 2014-15.

Sitharaman also stated that both export and import of agricultural products depend on several factors like availability, international and domestic demand and supply situation and quality concerns. The minister added that edible oils and pulses, which are in short supply in India, account for the bulk of India's import of agricultural products.

The CNX Nifty is currently trading at 9871.85, down by 36.20 points or 0.37% after trading in a range of 9835.95 and 9892.65. There were 19 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 4.16%, Aurobindo Pharma up by 2.28%, Infosys up by 1.57%, Tata Steel up by 1.25% and Hindalco up by 1.13%. On the flip side, Tata Motors down by 7.58%, Tata Motors - DVR down by 7.24%, Eicher Motors down by 3.27%, Sun Pharma down by 2.81% and BPCL down by 2.21% were the top losers.

All the Asian markets were trading in red; Hang Seng decreased 279.75 points or 1.01% to 27,477.34, Taiwan Weighted shed 140.64 points or 1.34% to 10,329.74, Shanghai Composite was down by 16.13 points or 0.49% to 3,259.45, Nikkei 225 dipped 8.97 points or 0.05% to 19,729.74, KOSPI Index declined 8.92 points or 0.38% to 2,359.47, Jakarta Composite decreased 1.64 points or 0.03% to 5,822.36 and FTSE Bursa Malaysia KLCI slipped 0.5 points or 0.03% to 1,777.44.