Markets trade lower in early session

After rising over half a percent in previous session, Indian equity markets have made a negative start and are now trading with marginal losses amid weak global cues as concerns over trade wars and further developments on tariffs, along with the decision of the Organisation of Petroleum Exporting Countries (OPEC) to marginally increase oil production. The market sentiment was further being weighed down by the weakness in rupee which fell in early trade on Monday due to fresh demand for the US currency from banks and importers. The Indian rupee weakened by 29 paise to 68.13 against the US dollar in early trade. However, losses remain capped with the industry body, Confederation of Indian Industry (CII) stating that Indian companies’ overseas investments are likely to go up. The industry chamber, citing a World Investment Report of UNCTAD, has said that India’s total cumulative stock of overseas foreign direct investment (OFDI) amounted to $155 billion in 2017.

On the global front, US stocks ended mostly higher on Friday following gains in Europe as OPEC’s plans to boost output less than some investors had anticipated sent oil on a tear. Asian markets were mostly trading lower on Monday, on lingering concerns about escalating trade frictions while US oil prices maintained hefty gains made after major oil producers had agreed on a modest increase in production.

Back home, traders were seen piling up position in IT, Healthcare, TECK, Basic Materials up, Metal, while selling was witnessed in Oil & Gas, Energy, PSU, Telecom, FMCG. In the scrip specific development, Sun Pharmaceutical Industries was trading higher on the BSE, nearing their 52-week high of Rs 609 per share touched on February 12, 2018. The market breadth on the BSE was positive; there were 952 shares on the gaining side against 811 shares on the losing side, while 88 shares remain unchanged.

The BSE Sensex is currently trading at 35646.57, down by 43.03 points or 0.12% after trading in a range of 35613.31 and 35806.97. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.16%, while Small cap index was up by 0.20%.

The gaining sectoral indices on the BSE were IT up by 1.02%, Healthcare up by 0.97%, TECK up by 0.79%, Basic Materials up by 0.69%, Metal up by 0.57%, while Oil & Gas down by 0.98%, Energy down by 0.73%, PSU down by 0.71%, Telecom down by 0.52%, FMCG down by 0.46% were the losing indices on BSE.

The top gainers on the Sensex were Vedanta up by 2.54%, Infosys up by 1.85%, Sun Pharma up by 1.55%, Wipro up by 0.79% and Mahindra & Mahindra up by 0.69%. On the flip side, Tata Motors - DVR down by 1.71%, Tata Motors down by 1.46%, NTPC down by 1.40%, ITC down by 1.23% and Coal India down by 1.13% were the top losers.

Meanwhile, with the stable market conditions and the significant impact created by Indian companies on local economies, the industry body, Confederation of Indian Industry (CII) has said that Indian companies’ overseas investments are likely to go up.

The industry chamber, citing a World Investment Report of UNCTAD, has said that India’s total cumulative stock of overseas foreign direct investment (OFDI) amounted to $155 billion in 2017. It also said that Indian companies have been working with the local communities while investing abroad, generating substantial employment and creating benefits for the host economies.

CII tracks overseas investments by Indian companies in major countries to provide insights about their scale and performance and the impact they have on these economies. These surveys have been conducted in the US, the UK, China, South Africa, and Germany. As per its various surveys, the major sectors of interest for Indian companies in these countries are information technology (IT), pharmaceuticals, manufacturing, automotive, financial services, and business services, among others.

The CNX Nifty is currently trading at 10809.75, down by 12.10 points or 0.11% after trading in a range of 10800.95 and 10823.70. There were 26 stocks advancing against 24 stocks declining on the index.

The top gainers on Nifty were Vedanta up by 2.71%, Infosys up by 1.94%, Ultratech Cement up by 1.60%, Bajaj Finance up by 1.51% and Lupin up by 1.42%. On the flip side, BPCL down by 2.58%, IOC down by 1.82%, NTPC down by 1.65%, HPCL down by 1.49% and Tata Motors down by 1.46% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 declined 87.48 points or 0.39% to 22,429.35, Straits Times shed 18.91 points or 0.58% to 3,268.49, Hang Seng dropped 111.21 points or 0.38% to 29,227.49 and Taiwan Weighted was down by 75.63 points or 0.70% to 10,823.65. On the flip side, KOSPI gained 0.83 points or 0.04% to 2,358.05, Jakarta Composite jumped 10.84 points or 0.19% to 5,832.65 and Shanghai Composite was up by 4.98 points or 0.17% to 2,894.74.