Markets slip into red zone in late afternoon session

The Indian benchmarks slipped into negative territory in late afternoon session. Both Sensex and Nifty were trading below their crucial 61300 and 18,300 marks, respectively. Selling in banking and NBFC’s counter pulled down the markets lower. Traders took note of report that in order to promote domestic manufacturing as well as attract global electronic chip companies to the country, the government is deliberating on a new semiconductor design-linked incentive scheme. The semiconductor design is the main driver of revenues that electronic chip companies earn from sale of their high end components. On the global front, Asian markets were trading mostly in red after Australian inflation increased, highlighting global pressure for prices to rise, while investors looked ahead to US economic growth data due out this week. European markets were trading lower with miners leading the declines after concerns about Chinese intervention hit metal prices, while mixed corporate earnings reports kept investors on edge.

The BSE Sensex is currently trading at 61291.18, down by 59.08 points or 0.10% after trading in a range of 61231.57 and 61576.85. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.47%, while Small cap index was up by 0.66%.

The top gaining sectoral indices on the BSE were Telecom up by 1.14%, Healthcare up by 1.06%, Consumer Discretionary up by 0.96%, IT up by 0.74% and Capital Goods was up by 0.65%, while Bankex down by 0.62%, Metal down by 0.49%, Energy down by 0.44%, Utilities down by 0.21% and Oil & Gas was down by 0.20% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 4.92%, Sun Pharma up by 2.35%, ICICI Bank up by 1.98%, Bharti Airtel up by 1.62% and Maruti Suzuki up by 1.61%. On the flip side, Axis Bank down by 5.94%, Bajaj Finance down by 4.19%, Indusind Bank down by 1.39%, Bajaj Finserv down by 1.38% and Hindustan Unilever down by 1.04% were the top losers.

Meanwhile, in order to promote domestic manufacturing as well as attract global electronic chip companies to the country, the government is deliberating on a new semiconductor design-linked incentive scheme. The semiconductor design is the main driver of revenues that electronic chip companies earn from sale of their high end components.

The scheme envisages financial and infrastructure support for Indian MSMEs and startups right through the ideate stage to production stage. As and when these startups start producing and selling chips in the market, they shall also avail additional incentives under the scheme on their net sales turnover.
Earlier, Minister of State for Electronics and IT Rajeev Chandrasekhar last week had said that the government would host a conference of semiconductor companies in November to discuss India’s policy roadmap in the segment.

The CNX Nifty is currently trading at 18260.10, down by 8.30 points or 0.05% after trading in a range of 18240.80 and 18342.05. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 4.70%, UPL up by 4.11%, Divi's Lab up by 3.17%, Shree Cement up by 2.42% and Sun Pharma up by 2.28%. On the flip side, Axis Bank down by 6.03%, Bajaj Finance down by 4.22%, ONGC down by 2.18%, Indusind Bank down by 1.37% and Bajaj Finserv down by 1.30% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 409.53 points or 1.57% to 25,628.74, Jakarta Composite lost 54.73 points or 0.82% to 6,602.21, Shanghai Composite declined 35.33 points or 0.98% to 3,562.31, KOSPI fell 23.59 points or 0.77% to 3,025.49 and Nikkei 225 was down by 7.77 points or 0.03% to 29,098.24. On the flip side,Straits Times advanced 17.49 points or 0.55% to 3,222.06 and Taiwan Weighted was up by 40.21 points or 0.24% to 17,074.55.

European markets were trading lower, UK’s FTSE 100 decreased 18.06 points or 0.25% to 7,259.56, France’s CAC decreased 10.51 points or 0.16% to 6,756.00 and Germany’s DAX was down by 56.38 points or 0.36% to 15,700.68.