The Dalal Street remained firmly in the grip of selling pressure during early afternoon delas, with realty stocks leading the losses, as uncertainty around U.S. trade policy and rising crude oil prices amid persistent tensions in the Middle East weighed on sentiment. Traders overlooked reports that with an aim to diversify export markets in response to changing global geopolitical and economic conditions, Ministry of Commerce & Industry has said that several initiatives have been undertaken by the government including expansion of network of Free Trade Agreements (FTAs) and Comprehensive Economic Partnership/Cooperation Agreements (CEPAs/CECAs); trade negotiations with major economies and regions to secure preferential market access for exporters. Further, the street took a note of Finance Minister Nirmala Sitharaman’s statement that the rupee's value against the US dollar is market-determined and there is no target or specific band for the domestic currency.
On the global front, Asian markets were trading mixed, after Japan posted a merchandise trade deficit of 406.906 billion yen in June. That missed forecasts for a shortfall of 120.0 billion yen following the 391.8 billion yen deficit in May.
The BSE Sensex is currently trading at 76689.65, down by 780.46 points or 1.01% after trading in a range of 76668.76 and 77384.95. There were 8 stocks advancing against 22 stocks declining on the index.
The only gaining sectoral indices on the BSE were Auto up by 0.07% and FMCG up by 0.01%, while Realty down by 2.76%, Healthcare down by 1.41%, Bankex down by 1.33%, IT down by 1.18% and PSU down by 0.97% were the top losing indices on BSE.
The top gainers on the Sensex were Titan Company up by 0.79%, Hindustan Unilever up by 0.77%, NTPC up by 0.56%, Power Grid up by 0.37% and TCS up by 0.18%. On the flip side, Interglobe Aviation down by 3.44%, State Bank of India down by 1.89%, Axis Bank down by 1.59%, Infosys down by 1.30% and Kotak Mahindra Bank down by 1.09% were the top losers.
Meanwhile, the Reserve Bank of India (RBI) has proposed simplified and future-ready rules related to foreign investments, including those pertaining to overseas listing of Indian companies. The proposed rules are aimed at rationalising provisions, harmonisation of definitions and simplifying regulatory architecture to enhance clarity and reduce regulatory complexity. Highlighting features of the proposed rules, the RBI said the rules will be aligned with the FDI policy, enhance ease of doing business and provide a future-ready regulatory framework. It noted that the rules will be finalised after wider public consultations. It has invited comments on the proposed rules by August 31.
On issue and listing on an international stock exchange, RBI has noted that public company may issue its equity or offer equity of existing shareholders on a foreign stock exchange, subject to certain conditions. One of the conditions is that the equity should be denominated in INR in the books of the company and held in dematerialised form. It added that if the company is not listed on a recognised stock exchange in India, then issue or offer of equity should be in compliance with the conditions or requirements prescribed by the Ministry of Corporate Affairs. Further, if initial listing of equity by a public company which is not listed on a recognised stock exchange in India, the price for issue or transfer of equity would be determined by a book-building process as permitted by the concerned international stock exchange.
Moreover, a person resident outside India or a foreign controlled entity (FCE) may make foreign investment on repatriation or non-repatriation basis, by way of subscription to an issue, purchase from any person or gift between natural persons. It added that an NRI or an OCI may subscribe to the National Pension System governed and administered by Pension Fund Regulatory and Development Authority (PFRDA), provided such person is eligible to invest as per the provisions of the PFRDA Act. The annuity/ accumulated saving will be repatriable.
The CNX Nifty is currently trading at 23974.95, down by 212.75 points or 0.88% after trading in a range of 23968.55 and 24166.30. There were 7 stocks advancing against 43 stocks declining on the index.
The top gainers on Nifty were Bajaj Auto up by 4.83%, Nestle India up by 1.80%, Tata Consumer Products up by 1.02%, ONGC up by 0.63% and Titan Company up by 0.59%. On the flip side, Interglobe Aviation down by 3.38%, State Bank of India down by 2.18%, JIO Financial Serv. down by 2.17%, Infosys down by 1.84% and Dr. Reddy's Labs. down by 1.77% were the top losers.
Asian markets were trading mixed; Jakarta Composite plunged 48.57 points or 0.77% to 6,291.45, Hang Seng declined 271.29 points or 1.08% to 24,861.00, Nikkei 225 slipped 66.19 points or 0.1% to 66,166.00 and Shanghai Composite weakened 1.57 points or 0.04% to 3,862.80, while KOSPI increased 49.75 points or 0.73% to 6,797.70, Taiwan Weighted added 592.91 points or 1.32% to 44,825.78 and Straits Times rose 24.29 points or 0.44% to 5,551.01.
