Markets trade marginally in red in afternoon session

Indian bourses were trading near the neutral line with a negative bias as the indices recovered from losses incurred in early deals on account of value buying that took place in IT and tech stocks following their steep fall in the previous few sessions. Markets continued to trade in red tracing weak global cues as US Federal Reserve Chairwoman Janet Yellen signaling Fed may raise US interest rates from the middle of next year. Depreciation in rupee value also added to the pessimistic sentiments. Most of the major indices were under pressure as capital goods remained the top loser on BSE down by 1.18% followed by realty and FMCG indices both down by over 0.80%. However, market losses remained capped as buying occurred in IT and teck stocks after the Nasscom noted that it is focusing on some areas that needed immediate attention in order to boost domestic IT market. Nasscom projects Indian IT-BPO industry growth at 13-15 percent for 2014-15.

On stock specific movement, Mayur Uniquoters soared by 9% to its record high level at around Rs 508 after its board approved to raise upto Rs 70 crore through preferential allotments to private equity (PE) firm WestBridge Capital. Alstom T&D India, extending its previous day’s 3% gain, was trading higher by 1% at nearly Rs 223, after the company said it has bagged a Rs 161 crore contract from state-run Power Grid Corporation for supplying equipment at various centres in North India.

On global front, Asian equity indices were trading mixed with Nikkei 225 down by 1.52% and Jakarta Composite down by 1.95% amid concerns that the US Fed may raise US interest rates from the middle of next year. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 6,500 and 21,700 levels respectively. The market breadth on BSE was negative, out of 2,365 stocks traded, 1,102 stocks advanced, while 1,129 stocks declined on the BSE.

The BSE Sensex is currently trading at 21,794.01 down by 38.85 points or 0.18% after trading in a range of 21,818.91 and 21,727.06. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.11%, while Small cap index up by 0.40%.

The gaining sectoral indices on the BSE were IT up by 1.75%, Teck up by 1.56% and Consumer Durables up by 1.31% and Healthcare up by 0.65%. While, Capital Goods down by 1.18%, Realty down by 0.87%, FMCG down by 0.76%, Power down by 0.66 and Metal down by 0.27% were the losing indices on BSE.   

The top gainers on the Sensex were Wipro up by 2.29%, TCS up by 2.27%, HUL up by 1.88%, Sun Pharma up by 1.54% and Infosys up by 1.38%. On the flip side, Gail India down by 2.74%, BHEL down by 2.13%, ITC down by 1.85%, L&T down by 1.57% and Coal India down by 1.54%.

Meanwhile, as per the global financial major HSBC, India's domestic demand is likely to recover from the recent slowdown mainly driven by the growing population and nascent middle-class generating a growing market for consumption goods. Indian economy’s growth slowed down to a decade low at 4.5 percent in FY13 and 4.6 percent during the first three quarters of FY14.

Referring to India’s trade outlook, the report noted that strong growth prospect of the US and UAE, the top two export destinations of India, would help the country to boost  foreign sales. Though, UAE and the US are likely to remain top destinations until 2030, exports to China will also expand rapidly. Oil-rich markets in the Middle East and North Africa would also continue to drive exports from India. The report added that near term outlook for trade flow for India is weak on account of depreciating rupee against the dollar. Though, weak rupee is beneficial for exports, but the positive impact of a weaker currency is likely to be offset by rising inflation, the HSBC report added. India's Trade Confidence Index (TCI) fell considerably to 126 in H2 2013, indicating that the near-term trade outlook is less bright than six months ago. Meanwhile, long term trade outlook remain bright for emerging economies like India.  During April-February’FY14, value of exports increased by 4.79% to $282.78 billion as against $269.86 billion in the same period of previous fiscal year

The CNX Nifty is currently trading at 6,507.15 down by 16.90 points or 0.26% after trading in a range of 6,516.70 and 6,488.50. There were only 17 stocks advancing against 33 declining on the index.

The top gainers of the Nifty were TCS up by 2.39%, Wipro up by 2.37%, HUL up by 1.92%, Sun Pharma up by 1.58% and Infosys up by 1.40%. On the flip side, BPCL down by 3.28%, Ambuja Cement down by 3.01%, Gail down by 2.83%, Bank of Baroda down by 2.63% and BHEL down by 2.45% were the major losers on the index.

Asian equity indices were trading in red; Nikkei 225 down by 1.52% to 14,242.76, Jakarta Composite down by 1.95% to 4,727.58, Hang Seng down by 1.50% to 21,245.39, Shanghai Composite down by 0.34% to 2,014.67, Taiwan Weighted was down by 1.06% to 8,597.33 and Straits Times was down by 0.66% to 3,061.21.