Benchmarks trade lower in early noon session

Indian benchmarks were trading lower in early noon session on account of selling in front line counters in absence of any upside triggers. Selling in ICICI Bank, Yes Bank and Bajaj Auto dragged the markets lower, with Sensex and Nifty losing around 0.80% and 0.91% respectively. Investors’ appetite for risk declined as foreign investors have pulled out close to Rs 6,000 crore so far from the Indian stock markets in January and experts believe this trend will continue in the coming months as well. This comes following a collective net inflow of Rs 8,584 crore in the equity markets by Foreign Portfolio Investors (FPIs) during November and December 2017. Prior to that, they had pulled out a massive Rs 28,900 crore in October.  Besides, broader indices were also trading in red, dragging their larger peers lower during the trade. Sentiment remained bearish with Moody’s Investors Service’s statement that the steps announced by the government to aid MSMEs and the measures being planned to support farmers will increase the risk of fiscal slippage and push deficit to 3.4 per cent of GDP in the current financial year.

On the global front, Asian markets were trading in mixed, amid Wall Street rallied after a deal was announced to reopen the U.S. government following a prolonged shutdown that had shaken investors sentiment. Back on street, Media and Entertainment stocks remained in focus as India is pushing a revenue- sharing agreement with China under the proposed mega trade deal RCEP to ensure that domestic film producers get their rightful dues from revenue generated by showing Bollywood movies in China. Currently, Bollywood movies make good money in but due to absence of any revenue sharing agreement, domestic film producers often do not get the due share from the huge profits generated in the neighbouring country from the movies.

The BSE Sensex is currently trading at 35736.91, down by 288.63 points or 0.80% after trading in a range of 35699.20 and 36124.26. There were 5 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 1.81%, while Small cap index was down by 1.93%.

The only gaining sectoral indices on the BSE were Capital Goods up by 0.07%, while Healthcare down by 2.05%, Basic Materials down by 2.02%, Auto down by 1.71%, Metal down by 1.64% and Telecom was down by 1.62% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.71%, TCS up by 1.35%, Kotak Mahindra Bank up by 1.15%, Asian Paints up by 0.57% and Hindustan Unilever was up by 0.19%. On the flip side, ICICI Bank down by 3.81%, Yes Bank down by 3.80%, Tata Motors - DVR down by 2.82%, Bajaj Auto down by 2.68% and Bajaj Finance was down by 2.40% were the top losers.

Meanwhile, Union Commerce and Industry Minister Suresh Prabhu has said that new policies of the government will help to increase India’s export from the current $321 billion to almost double in a few years. He also said that one of the principal potential areas for export is fisheries, especially at a time when for the first time, the country has come out with an agricultural policy. He added that the policy focuses on five key elements such as agriculture, horticulture, plantation, fisheries and meat.

The minister said “all these are going to be exported. From the current USD 30 billion, we want to take it to USD 100 billion. Fisheries can create several lakh jobs in the country.” Besides, he said that a new national air cargo policy unveiled on January 15 this year will boost fish exports. He also informed that the Centre and Goa government would tie up to form clusters to make value-added products.

Prabhu further said 'vegetables, fruits, cashew, fish can be exported from Goa. For that, we have already created a marine export development agency'. He also noted that the Mopa greenfield airport, expected to be operational by 2020, will help give the coastal state new opportunities. He added that they are planning to set up export hubs so that Goa will be benefit from new infrastructure.

The CNX Nifty is currently trading at 10681.95, down by 98.60 points or 0.91% after trading in a range of 10673.05 and 10804.45. There were 10 stocks advancing against 39 stocks declining while 1 stock remained unchanged on the index.

The top gainers on Nifty were Zee Entertainment up by 9.67%, Bharti Infratel up by 1.89%, Wipro up by 1.61%, Larsen & Toubro up by 1.54% and TCS was up by 1.29%. On the flip side, Adani Ports &Special down by 7.93%, Indiabulls Housing down by 5.64%, Ultratech Cement down by 4.26%, ICICI Bank down by 4.12% and Yes Bank was down by 3.92% were the top losers.

Asian markets were trading in mixed, Jakarta Composite dropped 8.88 points or 0.14% to 6,473.96, Nikkei 225 fell by 142.63 points or 0.69% to 20,630.93, Hang Seng lost 79.27 points or 0.29% to 27,489.92 and KOSPI was down by 7.20 points or 0.33% to 2,170.53. On the flip side, Taiwan Weighted strengthened 40.55 points or 0.42% to 10,010.16, Shanghai Composite gained 0.96 points or 0.04% to 2,602.68, Straits Times was up by 6.59 points or 0.21% to 3,208.84.