Markets continue to trade in red in afternoon session

Indian equity benchmarks added losses to their weak trade in the late afternoon session, hovering near the intra-day low level on account of selling witnessed in capital goods, realty and auto stocks amid weak global cues triggered by escalating tensions in Ukraine. Sentiment got a hit after a private report said that rural demand will continue to remain subdued for some time due to the deceleration in farm income. Further, the announcement that FDI during April-February FY14 dipped by modest 0.6 percent to $20.76 billion also dented the investors’ sentiments. However, gain in health care and Oil and gas stocks have provided some support to domestic markets. Healthcare was the top gaining index on BSE was up by around 1.20%. The broader markets once again outperformed the benchmarks with both small and mid cap indices were trading up by over 0.20%. Lupin, extending its 4% gain in the past three trading sessions, was higher by 1.5% at Rs 1,007 after the company said that it had entered into a strategic joint venture with Japanese pharmaceuticals company Yoshindo Inc. Jain Irrigation Systems has rallied around 11% and surged to its 52-week high level at Rs 80.55 on the back of heavy volumes on the bourses. Furthermore, UPL has surged around 9% to nearly Rs 252 after reporting a robust 28% year-on-year growth in adjusted consolidated net profit at Rs 405 crore for Q4FY14. On global front, Asian equity indices were trading in red with Hang Seng down by 0.33% and Shanghai Composite down by 1.44%. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 6,800 and 22,700 levels respectively. The market breadth on BSE was positive, out of 2,319 stocks traded, 1,119 stocks advanced, while 1,099 stocks declined on the BSE. The BSE Sensex is currently trading at 22,639.27 down by 48.80 points or 0.22% after trading in a range of 22,721.36 and 22,597.19. There were 13 stocks advancing against 17 stocks declining on the index. The broader indices were trading in green; the BSE Mid cap index was up by 0.40%, while Small cap index up by 0.22%. The gaining sectoral indices on the BSE were Healthcare up by 1.20%, Oil and Gas up by 0.19%, Metal up by 0.12%, Power up by 0.11% and Teck up by 0.01%. While, Capital Goods down by 0.55%, Realty down by 0.49%, Auto down by 0.46%, Bankex down by 0.32% and FMCG down by 0.17% were the losing indices on BSE.    The top gainers on the Sensex were Dr Reddys Lab up by 1.39%, Cipla up by 1.33%, Sun Pharma up by 1.16%, SSLT up by 0.96% and Tata Power up by 0.78%. On the flip side, Gail India down by 1.57%, BHEL down by 1.44%, Coal India down by 1.42%, Tata Motors down by 1.25% and Hero Motocorp down by 1.22%. Meanwhile, buoyant over the improving macro-economic situation of the country, Finance Minister P Chidambaram has asserted that Indian economy will strengthen in future on the back of recent measures taken by the government. The CAD will be brought down significantly to around $32 billion as compared to record high of $88.2 billion or 4.8% of GDP in FY13. Finance Minister added that CAD has not only been fully and safely financed but $ 28.5 billion has also been added to the reserves during the previous fiscal year. Chidambaram stated that India’s fiscal deficit will be contained within the target at 4.6% of GDP during FY14. Attributing the latest rally in capital market to improving domestic economy Finance Minister stressed that investors are becoming more confident about the stability and strength of India's economy. Regarding the tax collections, Chidambaram added that there has been shortfall in overall tax collection in the last fiscal. The government has collected about Rs 5,500 crore direct taxes more than the revised estimate of Rs 6,41,835 crore during FY14. However, there has been a shortfall of indirect tax of about Rs 17,000 crore due to less collection of Central Excise and Service Tax segments. Finance Minister further asserted that the Cabinet Committee on Investment (CCI) has speeded up implementation of large infrastructure projects. So far, the CCI has considered 169 big infrastructure projects out of which 108 have cleared and fresh loans to the extent of Rs. 1,02,292 crore have been released to the project promoters.  The government expects Indian economic growth to improve around 5.5-6% in the FY15. The CNX Nifty is currently trading at 6,763.80 down by 18.95 points or 0.28% after trading in a range of 6,783.20 and 6,750.30. There were 20 stocks advancing against 30 declining on the index. The top gainers of the Nifty were Tech Mahindra up by 1.79%, Lupin up by 1.78%, Cipla up by 1.33%, Dr Reddy’s Lab up by 1.32% and Sun Pharma up by 1.25%. On the flip side, Ambuja Cement down by 3.20%, IDFC down by 2.02%, Gail down by 1.75%, BHEL down by 1.62% and Coal India down by 1.47% were the major losers on the index. Asian equity indices were trading in red; Hang Seng down by 0.33% to 22,151.04, Shanghai Composite down by 1.44% to 2,007.47, Straits Times was down by 0.24% to 3,259.87, Nikkei 225 down by 0.95% to 14,291.88 and Jakarta Composite down by 1.03% to 4,847.40. While, Taiwan Weighted up by 0.41% to 8,809.71.