Indian equities add losses; Nifty slips below 9900 mark

Adding some losses, Indian equities continued to trade in red in early afternoon session, as selling appeared in Telecom, Oil & Gas, Consumer Durables and PSU stocks. Sentiments were weighed down on the reports that coal shipments handled by major Indian ports in August fell over 14 percent from a year earlier to 9.3 million tonnes, as demand for overseas coal declined due to higher domestic production. Furthermore, market participants remained cautious as the RBI cut the economic growth forecast for the current fiscal to 6.7 percent from its August forecast of 7.3 percent in view of issues with GST implementation and lower Kharif output estimates. Besides, a mixed lead from global markets alongside depreciation in rupee value against the dollar, too affected the market sentiments. Traders failed to get relief with NITI Aayog CEO Amitabh Kant’s statement that while there has been a 'little bit of dip' in the Indian economy, it is now bouncing back. Meanwhile, broader markets were outperforming the benchmarks--BSE Midcap and Smallcap indices were up by 0.41% and 0.53%, respectively. In scrip specific development, Wipro was trading in green as its digital business unit signed a definitive agreement to acquire Cooper, an award-winning design and business strategy consultancy.

On the global front, Asian markets were trading mixed, as investors adopted a cautious stance ahead of the release of the closely-watched US monthly jobs report on Friday. Back home, the BSE Sensex is currently trading at 31622.34, down by 49.37 points or 0.16% after trading in a range of 31610.65 and 31772.41. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.41%, while Small cap index was up by 0.53%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.74%, Realty up by 0.69%, Basic Materials up by 0.47%, Metal up by 0.29% and IT up by 0.22%, while Telecom down by 0.80%, Oil & Gas down by 0.75%, Consumer Durables down by 0.49%, PSU down by 0.48% and Bankex down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.31%, Mahindra & Mahindra up by 1.31%, Cipla up by 0.79%, Kotak Mahindra Bank up by 0.70% and Coal India up by 0.63%. On the flip side, SBI down by 1.52%, Power Grid down by 1.15%, Axis Bank down by 1.15%, ICICI Bank down by 1.09% and Hero MotoCorp down by 0.76% were the top losers.

Meanwhile, the Department of Telecommunications (DoT) has approached the sector regulator the Telecom Regulatory Authority of India (TRAI) on review of existing spectrum caps - 50 percent within a band and 25 percent overall across all bands - applicable on the operators. The telecom department’s letter to TRAI in this regard follows the recommendations made by the inter-ministerial group (IMG) tasked with examining financial stress in the telecom sector.

In light of the IMG report, TRAI is requested to provide views on whether existing applicable band-wise spectrum cap of 50 percent of total spectrum assigned in a band for an LSA (Licensed Service Area) and overall cap of 25 percent of total spectrum assigned in LSA across bands, should continue or needs review. IMG, in its report, had stated that Idea, Vodafone and Reliance Communications had requested for removing the spectrum caps, while Airtel had represented against it.  It also noted that the matter 'merits examination and inputs from regulator' and accordingly, the telecom department has decided to consult TRAI on the issue of spectrum limit.

As per the current rules, operators in each access area are not allowed to exceed the cap of 25 percent of total radiowaves assigned in 700, 800, 900, 1800, 2100, 2300 and 2500 Mhz bands, and 50 percent within a specific band. In case of a merger and acquisition, if merged entity exceeds the stipulated limits it has to surrender the excess spectrum within one year. Any easing of spectrum limit within a band by TRAI may come as a relief to Idea Cellular and Vodafone which are in the process of merging.

The CNX Nifty is currently trading at 9897.35, down by 17.55 points or 0.18% after trading in a range of 9892.95 and 9945.95. There were 23 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Aurobindo Pharma up by 2.28%, HCL Tech. up by 1.55%, Yes Bank up by 1.53%, Mahindra & Mahindra up by 1.37% and NTPC up by 1.13%. On the flip side, Bharti Infratel down by 2.89%, HPCL down by 1.99%, Indian Oil Corporation down by 1.70%, Tech Mahindra down by 1.64% and BPCL down by 1.55% were the top losers.

Asian markets were trading mixed; Nikkei 225 increased 1.9 points or 0.01% to 20,628.56 and Taiwan Weighted surged 48.92 points or 0.47% to 10,518.27. On the flip side, Jakarta Composite decreased 34.6 points or 0.58% to 5,916.88 and FTSE Bursa Malaysia KLCI was down by 3.22 points or 0.18% to 1,758.62.