Indian equities remain in red terrain

Indian equity benchmarks continued their trade in red territory in afternoon session, as selling momentum in the equities persisted. Cautiousness remained in markets ahead of September derivatives series expiry due tomorrow. Investors were also awaited policy cues from the US Federal Reserve, which is widely expected to raise interest rates. Traders took note of World Bank’s report that India and Pakistan’s bitter rivalry is costing them $35 billion worth of annual trade. However, some losses were trimmed as traders found some support with a report that government’s finances have shown improvement in August with fiscal deficit at 94.7% of the Budget Estimate (BE), mainly on account of better expenditure management. The deficit was at 96.1% of BE at August-end of the last financial year. On the sectoral front, telecom sector was in limelight with the government is looking at the funding of $100 billion for the draft National Digital Telecommunications Policy and is looking at Foreign Direct Investment (FDI) for the same by 2022.

On the global front, Asian markets were trading mostly in green, with energy firms surging with oil prices, while traders await the conclusion of a key Federal Reserve policy meeting. Back home, the BSE Sensex is currently trading at 36558.41, down by 93.65 points or 0.26% after trading in a range of 36416.34 and 36938.74. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.24%, while Small cap index was up by 0.16%.

The top gaining sectoral indices on the BSE were Realty up by 1.36%, Healthcare up by 0.69%, Basic Materials up by 0.47%, Metal up by 0.46% and Consumer Durables up by 0.44%, while FMCG down by 1.32%, IT down by 0.90%, TECK down by 0.67%, Power down by 0.63% and Auto down by 0.61% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 3.68%, Tata Steel up by 1.38%, HDFC Bank up by 1.31%, Mahindra & Mahindra up by 0.98% and Reliance Industries up by 0.62%. On the flip side, Tata Motors down by 2.76%, Tata Motors - DVR down by 2.59%, ITC down by 2.33%, Wipro down by 1.87% and Hindustan Unilever down by 1.63% were the top losers.

Meanwhile, In a bid to protect domestic industry and boost the economy, Commerce Secretary Anup Wadhawan has said that India will impose imports duties within the World Trade Organisation (WTO) norms. He said ‘we will use those options to further our interests', whether it is to develop our own economy or to protect our consumers from sub-standard products or whether to regulate some products in public interest. So, certainly those options will be exercised.’

Wadhawan stated that as far as tariff policy is concerned, India is a developing economy and it has the right under the WTO to use tariff within the bound rates. He noted that bound duty rates are tariffs over which a WTO member country cannot hike the customs duties. He said ‘developing country's infant industries' need protection. Our bound (duty rates) in the WTO have been shaped in that philosophy. We will certainly use.’

The secretary further said that these are policy instruments in the hands of policymakers and there are several concerns as far as imports are concerned. He noted that one concern is public safety and health, sub-standard products getting imported, which can harm consumers. He added that the government is taking steps put in place standards for goods to protect consumers' interest.

The CNX Nifty is currently trading at 11047.80, down by 19.65 points or 0.18% after trading in a range of 11007.10 and 11145.55. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing Finance up by 7.28%, UPL up by 4.03%, Yes Bank up by 3.44%, Titan Co up by 2.75% and GAIL India up by 2.57%. On the flip side, Tata Motors down by 2.93%, ITC down by 2.36%, HCL Tech. down by 2.35%, SBI down by 1.75% and Hindustan Unilever down by 1.58% were the top losers.

Asian markets were trading mostly in green; Straits Times increased 21.54 points or 0.66% to 3,257.62, Nikkei 225 was up by 93.53 points or 0.39% to 24,033.79, Shanghai Composite rose 23.13 points or 0.82% to 2,804.27, Hang Seng added 332.91 points or 1.2% to 27,832.30 and Jakarta Composite surged 26.91 points or 0.46% to 5,901.21.

On the flip side, Taiwan Weighted was down by 4.66 points or 0.04% to 10,974.19.