Markets turn red in early deals; Nifty breaches 10,100 mark

A sharp wave of sell off in early deals dragged key gauges below their crucial 32,300 (Sensex) and 10,100 (Nifty) levels, as traders turn concerned with report that advance tax payments by top corporate for September quarter has increased only marginally. However, Indian equity benchmarks made an optimistic start with traders taking some support with Finance Minister Arun Jaitley’s hint at a package of measures to boost the economy, while virtually ruling out any cut in duties on petroleum products to check the spike in fuel prices. Jaitley said the government is considering additional measures to bolster economy that has hit a three-year low of 5.7 percent in the first quarter of the current fiscal.

On the global front, Asian markets were trading mostly in green at this point of time. But gains remained capped on Fed’s hawkish tone. The US markets turned into consolidation mood and made a mixed closing in the last session, as traders digested the Federal Reserve's monetary policy announcement.

Back home, auto stocks edged lower despite Moody’s Investors Service in its latest report saying that car sales in India are expected to grow by nine per cent this year riding on the back of GST regime as well as new product launches. Meanwhile, the market breadth indicating the overall health of the market was weak, with 766 shares gaining and 1,150 shares declining, while a total of 102 shares were unchanged.

The BSE Sensex is currently trading at 32249.37, down by 151.14 points or 0.47% after trading in a range of 32226.33 and 32462.61. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.37%, while Small cap index was down by 0.57%.

The lone gaining sectoral indices on the BSE was Healthcare up by 1.17%, while Metal down by 1.20%, Realty down by 0.88%, PSU down by 0.76%, Utilities down by 0.74% and Bankex was down by 0.71% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 3.26%, Lupin up by 1.84%, Cipla up by 1.32%, Bajaj Auto up by 0.72% and Adani Ports up by 0.52%. On the flip side, Coal India down by 2.15%, ICICI Bank down by 1.79%, Tata Motors - DVR down by 1.66%, ONGC down by 1.19% and Axis Bank down by 1.03% were the top losers.

Meanwhile, revoking trading ban imposed on 114 entities, the capital markets regulator, Securities and Exchange Board of India (SEBI) has said that it did not find any adverse evidence against these entities. These 114 entities have come under the scanner for alleged manipulation and misuse of stock market platform for tax evasion. Earlier, SEBI had revoked ban on a total of 307 entities in the First Financial case as well as in the matter of dealing in shares of Eco Friendly Food Processing Park, Esteem Bio Organic Food Processing, Channel Nine Entertainment and HPC Biosciences.

In the current case, in May 2015 SEBI had restrained Pine Animation and 177 related entities from the securities market for alleged tax evasion worth Rs 420 crore. Later, the regulator had lifted trading restriction against two of them. The directions against the remaining 176 entities were confirmed through separate orders in June 2016, July 2016, August 2016, and June 2017. Post interim orders, SEBI conducted a detailed investigation of the entire scheme employed in the instant matter, connection amongst the debarred entities, funds used for the price manipulation of the scrip of Pine Animation so as to ascertain the violation of securities laws.

After completion of the investigation, the regulator said it ‘did not find any adverse evidence against 114 entities to show any connection/nexus with PAL or its promoters/directors or promoter related entities or any role in price manipulation volume manipulation in the scrip of Pine Animation’. Hence, violation of provisions of SEBI Act, Securities Contracts regulation, Prohibition of Fraudulent Trade (PFTUP) norms were not observed in respect of these 114 entities. Accordingly, SEBI has revoked the confirmatory orders against a total of 114 entities with immediate effect. However, it said that directions issued against the remaining 62 entities would continue.

The CNX Nifty is currently trading at 10081.90, down by 59.25 points or 0.58% after trading in a range of 10079.00 and 10158.90. There were 11 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 3.56%, Lupin up by 2.20%, Tech Mahindra up by 1.33%, Cipla up by 1.28% and Sun Pharma up by 1.09%. On the flip side, Tata Motors - DVR down by 1.84%, Coal India down by 1.72%, Bank of Baroda down by 1.62%, Hindalco down by 1.47% and ICICI Bank down by 1.45% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite gained 6.94 points or 0.21% to 3,372.94, Hang Seng increased 27.2 points or 0.1% to 28,155.00, Taiwan Weighted added 77.67 points or 0.74% to 10,596.84 and Nikkei 225 was up by 84.61 points or 0.42% to 20,395.07.

On the flip side, KOSPI Index decreased 1.47 points or 0.06% to 2,410.73.