Weakness persist in markets; Nifty continues trading below 5,400 mark

Indian equity markets continued trading in negative territory amid sustained selling across the board. The 30-share BSE benchmark was down 64.58 points, while Nifty continued to trade below the 5,400 mark. In currency markets, snapping four sessions of gains, Indian rupee depreciated against dollar on fresh demand for American currency from importers. On sectoral front, rate sensitive stocks like realty, bank were among the leading decliners after the RBI again indicated reluctance to cut interest rates despite slowing growth. Only FMCG and healthcare sectors were trading in green. Meanwhile, Supreme Court dismissed a petition seeking an investigation against Finance Minister P Chidambaram in the 2G telecom case. In global markets, Asian shares were trading in red as investors scaled back expectations for strong stimulus from the US Federal Reserve. Back home, the market breadth favoring negative trend; there were 945 shares on the gaining side against 1,427 shares on the losing side while 144 shares remained unchanged.

The BSE Sensex is currently trading at 17785.64 down by 64.58 points or 0.36% after touching a high of 17822.50 and low of 17734.26. There were 9 stocks advancing against 21 declines on the index.

The broader indices were trading on a negative note; the BSE Mid cap index was down by 0.46%, while Small cap index was down by 0.42%.

The only gainers on the BSE sectoral space were, FMCG up by 0.30% and HC up by 0.26%, while Realty down by 1.50%, CG down by 0.97%, Bankex down by 0.70%, Power down by 0.67% and Oil & Gas down by 0.60% were top losers on the index.

Coal India up by 1.25%, HUL up by 1.09%, HDFC up by 1.06%, Sterlite Industries up by 0.90%, Cipla up by 0.58% were major gainers on the Sensex, while Tata Steel down by 2.03%, Mahindra & Mahindra down by 1.83%, Hindalco Industries down by 1.55%, ICICI Bank down by 1.30% and Reliance down by 1.28% were major losers on the index.

Meanwhile, the central government has given its  approval for 10 foreign direct investment (FDI) proposals envisaging a total foreign exchange inflow worth Rs 1,259.92 crore, including the entertainment major Walt Disney's FDI proposal of Rs 1,000 crore to expand its operations in India. Though, the government approved the 10 proposals of foreign direct investments based on the recommendations of FIPB, it deferred decision on 16 FDI proposals, including that of Mahindra and Mahindra to set up a joint venture firm in defence sector and Unitech Wireless (Tamil Nadu) for providing unified access services.

Half of the proposals on whom decision was deferred, were related to pharmaceuticals and medical sectors. These included Pfizer (Mumbai), B Braun Singapore Pte (Singapore) and Ordain Health Care Global (Chennai).

Walt Disney Company (Southeast Asia) Pte proposal was for induction of foreign equity for inter alia expansion of the business and making downstream investment in other companies and subsidiaries of the company, including broadcasting companies.

Among some of the other significant proposals cleared was that of Equitas Holdings, which has been allowed to increase foreign equity in an investing company entailing an FDI inflow of Rs 140 crore, while Mauritius based Anamika Tea Holding got approval for acquisition of equity shares of a company engaged in business of plantation/ cultivation and manufacturing and selling of tea.

The S&P CNX Nifty is currently trading at 5,391.10, down by 24.25 points or 0.45% after trading in a range of 5,399.65 and 5,373.90. There were 12 stocks advancing against 38 declines on the index.

The top gainers on the Nifty were BPCL up by 1.58%, Coal India up by 1.10%, HDFC up by 1.07%, HUL up by 0.87% and Sterlite Industries up by 0.85%. While, JP Associaties down by 2.13%, Reliance Infra down by 2.12%, Tata Steel down by 1.99%, M&M down by 1.88% and Hindalco down by 1.59% were the top losers on the index.

All the Asian indices were trading in red; Straits Times down by 0.23%, Kospi Composite Index down by 1.17%, Nikkei 225 down 1.17%, Hang Seng index down by 1.17%, Jakarta Composite down by 0.27%, KLSE Composite down by 0.10%, Shanghai Composite down by 0.92% and Taiwan Weighted down by 0.37%.