Markets continue to trade lower in early noon session

Indian equity benchmarks continued to trade lower in the early noon session weighed by selling witnessed in Metal, Telecom and TECK stocks. The BSE Sensex and the NSE Nifty were down by over 0.40% each. Weakness in the other Asian markets too weighed down the sentiment. Sentiments remain subdued with a report that the country’s fiscal deficit for 2019-20 is expected to widen to 3.8 per cent and the upcoming Budget may set a target of 3.5 per cent for 2020-21. Furthermore, depreciating rupee against the dollar negatively impacted the sentiment. However, easing crude prices and foreign fund inflows supported the markets and restricted their downfall. On the global front, Asian markets were trading in red on increasing concerns over the rabid spread of coronavirus, which has infected more than 2,700 people and killed 80 people in China. Meanwhile, investments were mostly muted as several stock exchanges in the region are closed for the Lunar New Year holidays. Back home, in scrip specific development, shares of Ramco Cements climbed on investing Rs 5 crore in capital of Lynks Logistics.

The BSE Sensex is currently trading at 41430.76, down by 182.43 points or 0.44% after trading in a range of 41323.29 and 41516.27. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.38%, while Small cap index was up by 0.44%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.89%, Consumer Discretionary up by 0.42%, Realty up by 0.41%, Auto up by 0.37% and Consumer Durables was up by 0.29%, while Metal down by 2.51%, Telecom down by 0.82%, TECK down by 0.66%, IT down by 0.63% and PSU was down by 0.59% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.34%, ICICI Bank up by 1.58%, Maruti Suzuki up by 1.14%, Ultratech Cement up by 1.06% and Axis Bank was up by 0.86%. On the flip side, Tata Steel down by 3.36%, HDFC Bank down by 1.58%, Kotak Mahindra Bank down by 1.46%, SBI down by 1.45% and HDFC was down by 1.30% were the top losers.

Meanwhile, the government is likely to decide on allowing Indian companies to list their equity shares in foreign countries. Overseas listing of shares would help is providing an additional fund raising avenue for the corporates looking to expand and boost their business activities along with help in bringing more capital into the country. Many companies are interested in listing their equity shares in foreign countries.

Presently, quite a few Indian companies have American Depository Receipts (ADRs) that are traded in the US. Some other corporates have their Global Depository Receipts (GDRs). The corporate affairs ministry and markets regulator SEBI are in favour of allowing Indian firms to list their equity shares overseas. Other departments and regulators are also expected to be on board.

A decision is likely soon and changes would need to be done in the companies law and SEBI regulations for permitting listing of domestic companies overseas. Further, only public companies are likely to be given permission for overseas listing of equity shares. A depository receipt is a foreign currency denominated instrument, listed on an international exchange, issued by a foreign depository to a domestic custodian and includes GDRs.

The CNX Nifty is currently trading at 12188.70, down by 59.55 points or 0.49% after trading in a range of 12154.60 and 12216.60. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 2.46%, ICICI Bank up by 1.62%, Maruti Suzuki up by 1.01%, Ultratech Cement up by 0.97% and Axis Bank was up by 0.87%. On the flip side, JSW Steel down by 3.64%, Tata Steel down by 3.36%, Vedanta down by 2.95%, Hindalco down by 2.70% and Tata Motors was down by 1.72% were the top losers.

Asian markets were trading in red, Nikkei 225 slipped 473.50 points or 1.99% to 23,353.68 and Jakarta Composite was down by 69.65 points or 1.12% to 6,174.46.