Local equity markets shift gears; trade in red with loss of around 0.50%

Local equity markets, reversing gears slipped into negative territory, tailing a lower start for European counterparts, which have dragged both Sensex and Nifty below the crucial 25,500 and 7,650 levels, down by around half a percent.  Weak global cues, following tensions in Iraq and downbeat US economic data, which sapped risk appetite for emerging market’s assets, are mainly weighing in on the sentiments. Additionally, profit-booking was adding to negative milieu. Broader indices also surrendering to brutal selling pressure, were nursing heavy losses of over a percent.

On the global front, Asian equities turned mixed on Friday amid concerns about violence in Iraq and signs of improving economic activity from China. US president Barack Obama warned of possible military strikes in Iraq as a rebellion led by a Sunni Islamist group called the Islamic State of Iraq spreads rapidly through the country. Meanwhile, European shares too have got off to mostly negative start, as growing instability and violence in Iraq pushed up oil prices to a nine-month high.

Closer home, amidst broad-based selling pressure, all sectoral indices on BSE have slipped into red, with the only exceptions of IT stocks that were trading higher on Rupee’s depreciation to month low level. Meanwhile, the fall of markets are being led by stocks belonging to Public Sector Undertaking, Metal and Power counters. Besides, PSU Oil Marketing Companies, viz, BPCL, HPCL and IOC fell as Brent crude oil futures for July delivery hit a nine-month high. brent crude climbed to a nine-month high near $114 a barrel on Friday, as supply disruption fears took centre stage after the United States threatened military action in Iraq against Sunni Islamist militants who are pushing on towards Baghdad. The overall market breadth on BSE is in the favour of declines which thumped advances in the ratio of 1771:1072; while 87 shares remained unchanged.

The BSE Sensex is currently trading at 25452.5, down by 123.66 points or 0.48% after trading in a range of 25413.4 and 25688.3. There were 10 stocks advancing against 20 stocks declining on the index.   

The broader indices were trading in red; the BSE Mid cap index was down by 1.1%, while Small cap index down by 1.33%.   

The top losing sectoral indices on the BSE were PSU down by 2.29%, Metal down by 1.79%, Power down by 1.72%, Realty down by 1.68% and India Infrastructure Index down by 1.58were the losing indices on BSE, while IT up by 0.45% was the lone gainer on the index.

The top gainers on the Sensex were Infosys up by 1.02%, BHEL up by 1%, Mahindra & Mahindra up by 0.81%, Bajaj Auto up by 0.73% and Hero MotoCorp up by 0.55%. On the flip side, NTPC down by 3.43%, Hindalco Inds down by 3.2%, ONGC down by 2.93%, Axis Bank down by 2.35%and SSLT down by 1.98%, were the top losers.   

The CNX Nifty is currently trading at 7600.75, down by 49.15 points or 0.64% after trading in a range of 7593.9 and 7678.5. There were 15 stocks advancing against 35 stocks declining on the index.   

The top gainers on Nifty were HCL Technologies up by 1.94%, Tech Mahindra up by 1.11%, M&M up by 1.05%, Infosys up by 0.72% and BHEL up by 0.72%. On the flip side, BPCL down by 4.68%, DLF down by 4.19%, NTPC down by 3.96%, Hindalco Industries down by 3.66% and ONGC down by 3.1%, were the top losers.   

Most of the Asian equity indices were trading mixed; Shanghai Composite up by 0.88%, Hang Seng up by 0.74%, Nikkei up by 0.83%, while Straits Times down by 0.03%, Taiwan Weighted down by 0.09% and Jakarta Stock Index down by 0.20% were the losers.

European shares got off to a negative start; with Germany’s DAX sliding by 0.29%, France’s CAC 40 losing 0.28% and United kingdom’s FTSE 100 sliding by 0.38%