Trades Weak, 27 Scrips Moved To T2T Category

The markets are trading on a weak sentiment after the flat opening today. Strong domestic and global triggers are missing at the moment.

According to the media buzz, BSE has shifted a total of 74 scrips to (trade-to-trade) T2T category effective Aug 31.This includes companies like Wockhardt, Mastek, SKS Microfinance, HeidelbergCement India, Fame India, etc. The shares of these companies have fallen significantly. The action of the BSE is in the nature of a periodic review and a part of the surveillance measures. Traders, however, believe that this action has been taken to curb speculation and to ensure that the shares bought and sold are actually delivered.

BNP Paribas has cut the Indian equities to Neutral on the back of policy delays. The new Finance Minister has not yet delivered on the expectations that he was supposed to. Besides, the markets expected some policy action with regard to FDI in retail, the decisions on GST and GAAR, etc., which still remain unresolved. The last two sessions have seen equities being beaten down and the same may continue on the back of policy inaction and the political drama in the capital.

In the Asian markets, Hang Seng is trading down by 0.16%. Nikkei and Shanghai though, are trading in gains. Shanghai is currently flat to positive, while the Japanese markets are up 0.72%.

Only four of the sectoral indices are in the green, while all the rest are witnessing losses. IT (0.82%) and Teck (0.42%) have surged mainly because the rise in the share prices of TCS and Infosys. The Metals index has tanked 1.83% and CD stocks are also down by 1.39%.

Among the Sensex stocks, Tata Power has surged by 2.28% and is the top gainer in the group. Power major NTPC has also gained over 1%. Besides Infy and TCS, Wipro is also up 0.28%, showing some buying on the counter. Maruti Suzuki, Sun Pharma, GAIL, etc. are also up. Sterlite, JSW Steel and Tata Steel, on the other hand, are down by 2% each. Hindalco, Tata Motors, Coal India, Bharti Airtel, HDFC Bank and Bajaj Auto have dropped by 1% each.

Of the other shares, United Breweries has surged for the second day today. GSPL is also trading with 3.45% gains. Adani Ports is back in the gainers list after tanking yesterday. Other Adani stocks, however, are in the losers list.

The shares of IL&FS Engineering and Construction have surged over 3% after the company reported that it has received a new order worth Rs 331 crore.

RPP Infra, Bharat Rasayan, BLB, Chandra Prabhu, Lords Chemicals, IndiaNivesh, Easun Reyrolle and Hisar Metal have all recommended dividends today.

The advance-decline ratio is currently negative, with two shares seeing a decline for every one advancement.

We expect the markets to remain to choppy ahead in the day.