Weakness continued in the Indian equity markets amid rising worries about the global economy. Benchmarks, which tumbled sharply in early morning trade, recovered to some extent and dropped again following local currencies southward move. Meanwhile, Indian rupee touched a record low of 57 a dollar on Friday amid increased capital outflows and rising demand from importers for dollar. On sectoral front metal stocks were trading weak on the back of negative trend in global metal prices, while automobile stocks were edging higher. However, fall in crude oil prices, which slipped below the psychological $80 a barrel mark for the first time since October 2011, is not likely to benefit the Indian government, which imports more than 80%, on rupee depreciation. On the global front, most Asian markets were trading down.
The BSE Sensex is currently trading lower by 96.29 points or 0.57% at 16,936.27. The index has touched a high and low of 16,984.10 and 16,855.85 respectively. There were 11 stocks advancing against 18 declines and one remained unchanged on the index.
The broader indices gained some additional traction in comparison to their morning deals; the BSE Mid cap and Small Cap indices were trading higher by 0.05% and 0.20% respectively.
The few gaining sectoral indices on the BSE were, Auto up by 0.43% and Health Care up by 0.43%. While, Metal down by 1.33%, Capital Goods down by 0.81%, Bankex down by 0.58%, Realty down by 0.50% and TECk down by 0.49% were the top losers on the index.
The top gainers on the Sensex were Maruti Suzuki up by 1.97%, Cipla up by 1.73%, Hero MotoCorp up by 1.52%, M&M up by 1.01% and Bajaj Auto up by 0.96%.
On the flip side, Hindalco Industries down by 1.65%, HDFC down by 1.51%, Tata Steel down by 1.41%, Reliance down by 1.21% and Tata Power down by 1.17% were the top losers on the Sensex.
Meanwhile, India and China, the two emerging nations often regarded as global growth machines, are aiming to boost bilateral trade between the two leading Asian economies to $100 billion by 2015. The two Asian giants enjoyed a bilateral trade of a record $73.9 billion in the previous year. However, India's trade deficit with China enlarged to $27.07 billion, even as Indian exports grew nearly 13 percent to $23.4 billion, according to official data.
Indian Prime Minister Manmohan Singh, who is in Brazil to attend Rio+20 Summit, met his Chinese counterpart Wen Jiabao and brought to his notice the large trade surplus in China's favor. The Chinese premier, who met Manmohan Singh for the 13th time since 2004, acknowledged that India has a large trade deficit with the Asian giant and in that context he said rice exports from India would be allowed soon.
Chinese officials have assured India that it can start exporting basmati rice to Asia's largest Chinese economy soon following a long and tortuous six-year process that has been seen as underscoring the difficulties of navigating the complex bureaucratic hurdles that bar entry into the Chinese markets. Now that the regulatory issues, which existed earlier, have resolved Indian exporters may soon begin shipping basmati rice to China after both countries agree on a mutually satisfactory quarantine protocol.
Wen Jiabao has also vowed to encourage Chinese investments in India's infrastructure. India has set an investment target of at least Rs 2 lakh crore for core sector projects in the current fiscal. The two leaders also spoke of the joint mechanism set up by the two sides and agreed to form an inter-ministerial group within their respective countries on maritime matters, and deploy officials to hold formal talks on subjects pertaining to security, trade, navigation and other issues, including piracy.
The S&P CNX Nifty is currently trading at 5,128.45, lower by 36.55 points or 0.71%. The index has touched a high and low of 5,148.15 and 5,097.30 respectively. There were 12 stocks advancing against 38 declines on the index.
The top gainers of the Nifty were Maruti Suzuki up by 1.76%, Cipla up by 1.32%, Hero MotoCorp up by 1.22%, Bajaj Auto up by 0.70% and TCS up by 0.65%.
On the flip side, Jaiprakash Associates down by 4.76%, ACC down by 3.63%, Ambuja Cement down by 3.26%, Hindalco Industries down by 2.22% and Tata Steel down by 2.07%, were the major losers on the index.
All the Asian equity indices were trading in the red. Nikkei fell 0.29%, South Korea's Kospi plunged 2.21%, Shanghai Composite plummeted 1.40%, Hang Seng index dipped 1.13%, Straits Times declined 0.39% and Jakarta Composite dropped 0.81%.
On the other hand, KLSE composite up by 0.41% was the lone gainer amongst the Asian pack.
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