After witnessing range-bound trading in afternoon trade, key benchmark indices drifted lower in mid-afternoon trade. At 14:16 IST, the Sensex was down 62.55 points or 0.25% at 24,622.87. The decline in Nifty 50 index was lower than the Sensex's fall in percentage terms. The Nifty was currently down 8.35 points or 0.11% at 7,538.10. The market breadth indicating the overall health of the market was positive. On BSE, 1,369 shares rose and 1,005 shares fell. A total of 156 shares were unchanged. The BSE Mid-Cap index was currently up 0.4%. The BSE Small-Cap index was currently up 0.43%. Both these indices outperformed the Sensex.
In overseas stock markets, European stocks edged higher following top European Central Bank officials' comments yesterday, 7 April 2016, expressing their willingness to launch fresh stimulus. Asian stocks witnessed a mixed trend. US stocks closed lower yesterday, 7 April 2016, with financials leading decline on profit taking in an overall risk-off environment ahead of earnings season.
IT stocks were mixed. HCL Technologies (up 0.16%), Persistent Systems (up 1.19%) and Tech Mahindra (up 2.25%) edged higher. Wipro (down 0.81%) and Oracle Financial Services Software (down 0.05%) edged lower.
Index heavyweight and IT major Infosys was off 1.11% at Rs 1,168.50. The stock hit a high of Rs 1,178 and a low of Rs 1,162.05 so far during the day. The company will announce its Q4 March 2016 results on 15 April 2016.
TCS was off 1.56% at Rs 2,432.40. The stock hit a high of Rs 2,466.90 and a low of Rs 2,432 so far during the day. The company will announce its Q4 March 2016 results on 18 April 2016.
Capital goods stocks were mostly higher. Havells India (up 2.69%), ABB India (up 1.41%), Bharat Electronics (up 0.93%), Bharat Heavy Electricals (up 0.75%), Praj Industries (up 0.83%), L&T (up 0.44%), Siemens (up 0.41%) and Alstom T&D India (up 0.29%) edged higher. BEML (down 2.9%), Thermax (down 1.21%), Crompton Greaves (down 1.57%) and Suzlon Energy (down 0.84%) edged lower.
Lloyds Metals and Energy was locked at 20% upper circuit at Rs 30 after the company resumed mining activities at Surjagarh iron ore mines at Gadchiroli in Maharashtra. The work at the leased mines was suspended due to Force Majeure event. The iron ore material from the mine has started coming to the factory, it added. Lloyds Metals also announced that it has received 71,302 Certified Emission Reductions (CERs) from United Nations Framework Convention on Climate Change (UNFCCC). CERS were issued against the power produced at the waste to energy plant during the period from 27 May 2013 to 30 June 2014. The announcement was made during market hours today, 8 April 2016.
Meanwhile, as per the monthly data released by Association of Mutual Funds In India (AMFI), investors withdrew a net Rs 1370 crore from equity mutual funds in March 2016. This compares with a net inflow of Rs 2522 crore into equity mutual funds in February 2016. There was a net inflow of Rs 78 crore in balanced funds in March 2016, which was lower than inflow of Rs 941 crore in February 2016. Balanced funds invest the money in a combination of equity and debt, with majority of the investment going into equity. The funds' investments range from 65% to 80% in equity and the rest in debt.
Meanwhile, global credit rating agency Moody's Investors Service said in a recent report that the rapid rise in foreign direct investment (FDI) inflows in India mitigates the risks related to a potential widening of the nation's current account deficit from weaker remittances from Gulf countries and is credit positive for the country's sovereign rating. Moody's expects FDI inflows to climb further in response to government measures, such as efforts to liberalize foreign investment limits in several sectors and the 'Make in India' initiative. These trends are credit positive, as they lower India's susceptibility to external shocks at a time when capital flows to emerging markets are volatile and weak economic conditions globally and, in particular, in the Gulf countries, may dampen remittances, according to a statement issued by the rating agency yesterday, 7 April 2016 after the release of the report.
The report says that a lower energy import bill and policy measures to contain gold imports are contributing to keeping the trade deficit at moderate levels. Going forward, the imposition of an excise tax on gold in the Union Budget 2016-17 is likely to dampen overall gold imports. India's current account deficit is now more than covered by its FDI inflows. The rise in FDI points to stronger investor interest in India on the back of robust economic growth, according to the report. The development of industrial corridors, investment and manufacturing zones, and 'smart cities' will further bolster investment inflows. Moody's expects acceleration in FDI inflows into the manufacturing sector as the government seeks to boost the manufacturing sector's share of GDP to 25% by 2022.
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