Bourses turn negative in noon deals

Indian equities erased all the gains to turn negative in early afternoon session, on account of heavy selling in PSU, Realty and Telecom stocks. The sentiments turned pessimistic despite report indicating that private equity (PE) investments witnessed a two-fold jump in February with transactions worth $1.3 billion taking the deal tally for the first two months of this year to $2.3 billion. There were 62 PE deals worth $1,330 million, while in the corresponding period last year there were 45 such transactions worth $588 million. Meanwhile, Reserve Bank Governor Urjit Patel and five other experts on the MPC will take a call on changing interest rate in the backdrop of declining retail interest rate when they meet here on April 4-5 to decide the first bi-monthly monetary policy of the next fiscal. In the currency front, the rupee recovered 18 paise to 65.03 against the US dollar in early trade on heightened selling of the US currency by exporters and banks. In scrip specific development, Indiabulls Housing Finance was up by around one and half percent on raising Rs 500 crore through NCDs.

On the global front, Asian markets were trading mixed, as investors digested the potential impact of the US Federal Reserve's first interest rate increase this year and as worries about a trade war between the US and China also weighed on investor sentiment. Back home, the BSE Sensex is currently trading at 33105.84, down by 30.34 points or 0.09% after trading in a range of 33099.12 and 33281.77. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.62%, while Small cap index was down by 0.72%.

The only gaining sectoral indices on the BSE were Consumer Durables up by 0.60% and Energy up by 0.23%, while PSU down by 0.96%, Realty down by 0.90%, Telecom down by 0.79%, Power down by 0.67% and Bankex down by 0.59% were the top losing indices on BSE.

The top gainers on the Sensex were ONGC up by 2.45%, Tata Motors up by 1.30%, HDFC Bank up by 0.95%, Reliance Industries up by 0.90% and Indusind Bank up by 0.87%. On the flip side, ICICI Bank down by 2.75%, SBI down by 2.28%, Mahindra & Mahindra down by 1.86%, Tata Steel down by 1.09% and Coal India down by 1.03% were the top losers.

Meanwhile, the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has allowed 14 urea manufacturing units, which could not meet the new energy norms under the 2015 policy, to continue with the existing energy norms for further period of 2 years with token penalties. Under the new urea policy 2015, 27 urea units were to meet the energy efficiency norms by the end of fiscal year 2017-18. Out of 27 urea units, only 11 urea units have mostly achieved the target.

The cabinet also decided to allow three naphtha-based units to carry on with existing energy norms for another two years or till they get gas pipeline connectivity. Besides, it approved implementation of new energy norms under the new urea policy 2015 for 11 urea units with effect from April, 2018, which would help the government save subsidy of about Rs 268 crore. In addition, it approved continuation of the new energy norms for five years with effect from 2020.

According to the CCEA, the extension of present energy norms for further period of 2 years will ensure easy availability of urea to farmers throughout the country. It will also help to maximise the indigenous urea production and will lessen the import of urea. Apart from this, it will also help to recover some part of the CAPEX invested by urea manufacturing units for making their units more energy efficient. It noted that energy efficient urea manufacturing units will reduce the carbon footprint and it will be more environment friendly.

The CNX Nifty is currently trading at 10143.60, down by 11.65 points or 0.11% after trading in a range of 10141.75 and 10207.85. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.45%, Tata Motors up by 1.42%, GAIL India up by 1.13%, Eicher Motors up by 1.05% and Vedanta up by 1.03%. On the flip side, BPCL down by 3.52%, HPCL down by 3.11%, ICICI Bank down by 2.66%, SBI down by 2.40% and Mahindra & Mahindra down by 1.83% were the top losers.

Asian markets were trading mixed; FTSE Bursa Malaysia KLCI increased 7.16 points or 0.38% to 1,872.96, KOSPI Index increased 11.05 points or 0.44% to 2,496.02, Jakarta Composite increased 13.31 points or 0.21% to 6,326.15 and Nikkei 225 increased 211.02 points or 0.99% to 21,591.99. On the flip side, Hang Seng decreased 189.13 points or 0.6% to 31,225.39, Shanghai Composite decreased 19.27 points or 0.59% to 3,261.68 and Taiwan Weighted decreased 5.23 points or 0.05% to 11,005.84.