Markets remain in tight range; BHEL recovers on inline Q1 numbers

Indian equity markets continue to trade in a tight range in negative territory ahead of settlement for July contract. The 30 share BSE benchmark went down 11 points, while 50-share NSE benchmark slipped 4 points. In currency markets, Indian rupee opened higher against dollar on Thursday. However, BHEL recovered from early losses due to inline Q1 numbers, while Sterlite Industries was trading down ahead of quarterly earnings today. On sectoral front Capital goods stocks were mostly trading lower. Metal, PSU and realty stocks are also trading weak. Power, oil and information technology stocks too were somewhat subdued. Healthcare, FMCG and select automobile, banking and consumer durables stocks were finding modest support. In global markets most of the Asian shares were trading in green. Back home, the market breadth favoring negative trend; there were 815 shares on the gaining side against 1,464 shares on the losing side while 96 shares remained unchanged.

The BSE Sensex is currently trading at 16,834.97 down by 11.08 points or 0.07% after trading as high as 16899.77 and as low as 16800.35. There were 11 stocks advancing against 19 declines on the index.

The broader indices were trading on a negative note; the BSE Mid cap index down 1.01% while Small cap index was down 1.00%.

The top gainers on the BSE sectoral space were, HC up by 0.41%, Auto up 0.21%, FMCG up 0.16% and CD up by 0.10%, while CG down by 1.24%, PSU down by 0.62%, Metal down by 0.61%, Realty down by 0.61%, and Power down by 0.43% were the losers on the index.

Sun Pharma up by 2.53%, Bajaj Auto up by 1.75%, Maruti Suzuki up by 1.44%, Cipla up by 1.18% and Dr Reddys Lab up by 0.81% were major gainers on the Sensex, while Tata Power down by 1.14%, Hindalco down by 1.05%, Tata Motors down by 1.03%, Coal India down by 1.01% and L&T down by 0.95% were the major losers in the index.

Meanwhile, expediting the pace of policy reform after the completion of presidential polls, Cabinet is likely to take up the foreign direct investment (FDI) in aviation proposal on July 27, a development which Aviation minister, Ajit Singh, is keen on. The Ministry on Civil Aviation has put forward its views on allowing 49 per cent FDI in aviation to the Department of Industrial Policy and Promotion (DIPP). In its recommendations, the ministry has urged for management control to remain in hands of Indians, who will also constitute two third of the strength of board members.

This development is expected to emerge as lifeline to cash-starved and debt-laden carriers such as Kingfisher Airlines, which has debt to the tune of Rs 7,000 crore and has scaled down operations to prune costs. However, International Air Transport Association (IATA)’s recent report sounds alarm bells for Indian aviation sector, which has stated beleaguered Aviation sector being in multi-faceted crisis, crippled by high costs, exorbitant taxes and insufficient infrastructure. IATA director general Tony Tyler warned that in light of critical domestic problems not being addressed, foreign investors might not line up to put their cash in Indian airlines, even if the country allows 49% FDI in Aviation sector.

However, Aviation minister is keen to extend Aviation sector's mass reach, which for a long term was perceived as rich man travel. Working towards slew of initiative for reviving the beleaguered Aviation industry, the ministry is now mulling to replace Directorate General of Civil Aviation (DGCA) with a Civil Aviation Authority by bringing in a new bill in the winter session of Parliament. The ministry, further plans to restructure the Bureau of Civil Aviation Security (BCAS) and to constitute a dedicated security force for the industry.

The S&P CNX Nifty is currently trading at 5,105.15, down by 4.45 points or 0.09% after trading as high as 5,126.30 and as low as 5,093.75. There were 17 stocks advancing against 33 declines on the index.

The major gainers on the Nifty were Ambuja Cement up by 2.73%, Sun Pharma up by 2.49%, Bajaj-Auto up by 2.02%, Maruti up by 1.89% and Jindal Steel up by 1.29%. While, SAIL down by 1.93%, PNB down by 1.79%, Sesa Goa down by 1.09%, BPCL down by 1.05% and L&T down by 0.98% were the major losers on the index.

Most of  Asian equity indices were trading in green ; Hang Seng index up by 0.17%, Nikkei 225 up 0.92%, Shanghai Composite up 0.02 points, Kospi Composite Index up 0.74% and Straits Times up 1.05%, while Taiwan Weighted down 0.12%, KLSE Composite down 0.37% and  Jakarta Composite was down by 0.11% were losers.