Markets slip into negative territory

Indian equity benchmarks slipped into negative territory in late afternoon session, Both Sensex and Nifty were trading below their crucial 38750 and 11525 marks, respectively. The markets got hit with report that advance tax collections fell 25.5 per cent to Rs 1,59,057 crore in the second quarter of the fiscal. Traders shrugged off investment in the Indian capital market through participatory notes (P-notes) climbed to over Rs 74,000 crore till August-end, making it the highest level in 10 months. This marks the fifth consecutive monthly rise in the investment through the route, also signaling at growing confidence of foreign portfolio investors (FPIs) in the local market. Sector wise, defence sector remained in focus, as Department for Promotion of Industry and Internal Trade (DPIIT) in a note has said that the government has permitted foreign direct investment (FDI) of up to 74 percent under automatic route in the defence sector in order to attracting overseas investors.

On the global front, Asian markets are trading mostly in green after the U.S. Federal Reserve promised to keep rates low for a long time but stopped short of promising changes to its massive bond-buying program. European markets were trading mostly in red as investors settled into a holding pattern while awaiting new catalysts.

The BSE Sensex is currently trading at 38726.63, down by 253.22 points or 0.65% after trading in a range of 38688.01 and 39200.42. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index gained 0.15%, while Small cap index was down by 0.16%.

The top gaining sectoral indices on the BSE were Healthcare up by 3.41%, Telecom up by 1.36%, Realty up by 1.34%, TECK up by 0.51% and Utilities was up by 0.41%, while Bankex down by 1.79%, FMCG down by 0.83%, Consumer Durables down by 0.56%, PSU down by 0.40% and Energy was down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 2.07%, Tech Mahindra up by 1.98%, Bharti Airtel up by 1.89%, Sun Pharma up by 1.39% and ONGC up by 0.89%. On the flip side, Kotak Mahindra Bank down by 2.78%, HDFC Bank down by 2.48%, SBI down by 1.92%, Bajaj Finserv down by 1.74% and Indusind Bank down by 1.72% were the top losers.

Meanwhile, welcoming the government’s decision to amend the foreign direct investment (FDI) policy in Defence Sector, Union Minister for Commerce and Industry Piyush Goyal said that the move will enhance ease of doing business & contribute to the growth of investment, income and employment.

The Minister further said that foreign investments in the defence sector shall be subject to scrutiny on the grounds of national security and added that in line with collective vision of Aatmanirbhar Bharat, amendments will enhance self-reliance in defence production, while keeping national interests & security paramount.

Meanwhile, the Centre announced that FDI up to 74% under automatic route shall be permitted for companies seeking new industrial licenses.

The CNX Nifty is currently trading at 11504.10, down by 12.00 points or 0.10% after trading in a range of 11463.10 and 11584.10. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Dr. Reddys Lab up by 12.23%, Cipla up by 7.85%, Mahindra & Mahindra up by 2.65%, Hindalco up by 2.64% and Bharti Airtel up by 2.44%. On the flip side, Kotak Mahindra Bank down by 2.54%, HDFC Bank down by 2.25%, SBI down by 1.66%, Hindustan Unilever down by 1.56% and Bajaj Finserv down by 1.45% were the top losers.

Asian markets are trading mostly in green; Hang Seng increased 114.56 points or 0.47% to 24,455.41 Shanghai Composite gained 67.65 points or 2.07% to 3,338.09, Nikkei 225 surged 40.93 points or 0.18% to 23,360.30, Jakarta Composite soared 20.82 points or 0.41% to 5,059.22, KOSPI rose 6.23 points or 0.26% to 2,412.40, Taiwan Weighted strengthened 2.88 points or 0.02% to 12,875.62. On the flip side, Straits Times was down by 1.70 points or 0.07% to 2,499.08.

European markets were trading mostly in red; UK’s FTSE 100 decreased 23.77 points or 0.39% to 6,026.15, France’s CAC decreased 20.37 points or 0.4% to 5,019.13. On the flip side, Germany’s DAX increased 10.40 points or 0.08% to 13,218.52.