Bourses trade in red terrain in afternoon deals

Indian equity indices were trading in red terrain in afternoon trade, as investors refrained from making big bets ahead of corporate results and weakening global cues. The sentiments remained in lackluster mood with International Monetary Fund (IMF) stating that global growth has plateaued at 3.7 per cent with its chief economist warning the world that there are clouds on the horizon and growth has proven to be less balanced than hoped. Some anxieties also came with a private report stating that a delayed festive season and an unfavourable base will keep India Inc’s earnings subdued in the three months to September despite a boost for IT and pharmaceuticals from the weaker rupee. Traders also took note of Oil Minister Dharmendra Pradhan’s statement that there was no question of going back on deregulation of fuel pricing despite the government asking state owned firms to subsidise petrol and diesel by Re 1 per litre. Moreover, the rupee depreciating by 14 paise to 74.20 against the dollar in early trade, too weighed on the sentiments. On the sectoral front, Defence sector remained in focus with the Department of Defence Production under the Ministry of Defence has cleared 31 projects and has given them in-principle approval under the Make-II scheme.

On the global front, Asian markets were trading mixed, following the lackluster cues overnight from Wall Street amid worries about the impact of rising interest rates, U.S.-China tensions and a slowing Chinese economy. Back home, the BSE Sensex is currently trading at 34438.81, down by 35.57 points or 0.10% after trading in a range of 34317.88 and 34711.68. There were 16 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.88%, while Small cap index was down by 0.84%.

The only gaining sectoral indices on the BSE were Metal up by 0.64%, while Consumer Durables down by 2.44%, Auto down by 2.21%, Industrials down by 1.68%, Realty down by 1.60% and Oil & Gas down by 1.42% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 3.80%, HDFC up by 3.58%, Vedanta up by 2.97%, Adani Ports &SEZ up by 2.38% and Coal India up by 1.83%. On the flip side, Tata Motors down by 14.50%, Tata Motors - DVR down by 13.51%, Hindustan Unilever down by 2.66%, Asian Paints down by 2.10% and ICICI Bank down by 1.91% were the top losers.

Meanwhile, amid rising fuel prices, Union road transport minister Nitin Gadkari has stressed on use of alternative energy sources including bio ethanol. He also said ‘import of petrol is becoming difficult for the country and so we should look at the alternative sources of energy ...we should make full use of biofuel, methanol, and ethanol among others.’

The minister has stated that under the supervision of ministry of Science and Technology, cheap and eco-friendly alternatives have been successfully tried. He also said that his ministry has earned a lot of revenue through alternative fuel. He noted that in the forest areas of the country, there are such natural products through which different alternatives of fuel including ethanol can be prepared.

Gadkari further said that the union government has prepared a policy to purchase to such natural products from tribals. He said ‘we can remove our country's poverty with the help of science and technology ... the manner in which our scientists are working, India will definitely become economic super power.’ He also said ‘we can now assure the Prime Minister who has given the concept of New India that we have people ready for making it a reality by 2022.’

The CNX Nifty is currently trading at 10329.25, down by 18.80 points or 0.18% after trading in a range of 10292.90 and 10397.60. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 3.87%, HDFC up by 3.81%, Vedanta up by 3.24%, Adani Ports &SEZ up by 2.56% and Zee Entertainment up by 2.46%. On the flip side, Tata Motors down by 14.48%, Titan Co down by 4.71%, Eicher Motors down by 3.79%, HPCL down by 3.49% and Grasim Industries down by 3.39% were the top losers.

Asian markets were trading mixed; Hang Seng increased 22.73 points or 0.09% to 26,225.30, Taiwan Weighted increased 10.90 points or 0.1% to 10,466.83 and Jakarta Composite increased 16.11 points or 0.28% to 5,777.18. On the flip side, Nikkei 225 decreased 314.33 points or 1.34% to 23,469.39, Straits Times decreased 15.32 points or 0.48% to 3,166.13 and Shanghai Composite decreased 2.49 points or 0.09% to 2,714.02.