Bourses slip to day’s low on relentless profit-booking; Nifty slips sub 7250 mark

The Losses at Dalal Street have more than doubled up, with barometer gauges now decelerating to- day’s low point and trading with cut of over three tenths of a percent, tailing a somber start of European counterparts. Languishing at day’s low, while Sensex is gyrating below the crucial 24300 level, Nifty is trading shy off the crucial 7,250 mark, led by the colossal losses in Capital Goods, banking and healthcare counters. However, contrary to the trend, broader indices outperforming larger counterparts were trading with gains of over 1.25%. On the flip side, stocks from Realty, Consumer Durables and Autocounters were limiting further downside of the markets.

On the global front, Asian shares were lower Wednesday taking a cue from Wall Street overnight and continued steady monetary policy from the Bank of Japan as expected. Meanwhile, European shares fell in early deals on Wednesday, dropping further away from last week's 2014 highs, led down by BNP Paribas after a report that U.S. authorities are seeking to fine the bank.

The BSE Sensex is currently trading at 24287.42, down by 89.46 points or 0.37% after trading in a range of 24,419.54 and 24278.39. There were 10 stocks advancing against 20 stocks declining on the index. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1886:761; while 100 shares remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 1.35%, while Small cap index up by 1.78%.

The gaining sectoral indices on the BSE were Realty up by 0.65%, Consumer Durables up by 0.53%, Auto up by 0.52%, IT up by 0.51% and Power up by 0.37%. On the flip side, Capital Goods down by 1.12%, Bankex down by 0.93%, Healthcare down by 0.36% and Oil & Gas down by 0.28% were the losing indices on BSE.   

The top gainers on the Sensex were Bajaj Auto up by 3.67%, Hindalco Inds up by 2.96%, NTPC up by 2.35%, Coal India up by 0.91% and Infosys up by 0.65%. On the flip side, BHEL down by 2.05%, Sun Pharma down by 1.94%, Axis Bank down by 1.80%, Gail India down by 1.67% and ONGC down by 1.63%.

Meanwhile, in yet another encouraging development for the country, Morgan Stanley has come up with a report, wherein it has described election results as an 'inflexion point' for India’s story and forecasted the likelihood of country’s gross domestic product (GDP) accelerating to 6.8% over the next two years.

The world's largest diversified financial services company, Morgan Stanley also exuberated confidence for the country emerging from the stagflation type of environment over the next few quarters and its GDP speeding up to by 210 bps over the next 8 quarters to 6.8%. While, on the inflation front, the report pointed that inflation will finally head towards RBI’s comfort zone of 6% over the next two years. It also forecasted an overshoot in equity markets on prevailing sanguine mood witnessed after the landslide victory of BJP led government and upped the 30-share index target of 26,300 for June, 2015 compared to its previous target of 21,280.

In a word of caution, financial services company highlighted that it expected weaker global growth and slower than anticipated pace of policy reforms as a risk factor to its forecasts. As per the report, some of the near term challenges for the Indian economy in the next 12 months include El Nino and pace of recovery of exports, while some of the medium term challenges for the economy are global environment and reform momentum.

The CNX Nifty is currently trading at 7,247.35, down by 28.15 points or 0.39% after trading in a range of 7,287.15 and 7,246.00. There were 18 stocks advancing against 32 declining on the index.

The top gainers of the Nifty were Bajaj Auto up by 4.10%, Mcdowell up by 4.00%, NTPC up by 2.57%, Hindalco up by 2.53%, and HCL Technologies up by 2.14%. On the flip side, Ultratech Cement down by 2.40%, Gail India down by 2.10%, BHEL down by 2.09%, Sun Pharma down by 1.96% and Axis Bank down by 1.88% were the major losers on the index.

Asian equity indices were trading in green; Straits Times dropped 0.15%, Nikkei 225 shed 0.24%, Jakarta Index slid by 0.14% and Taiwan Weighted down by 0.29%. While, Hang Seng up by 0.01% and Shanghai Composite advanced 0.65%.

European markets got off to a negative start; with France’s CAC 40 index declining by 0.39%, Germany’s DAX sliding by 0.21% and United Kingdom’s FTSE 100 dropping 0.61%