Markets extend losses; trade near intra-day low levels

Indian equity benchmarks extended losses and were trading near intra-day low levels in the afternoon session on account of emergence of profit booking after the recent record gains. Profit taking by traders at higher levels dragged the major indices down, moreover weak Asian cues also weighed on the markets’ sentiments. Investors also remained cautious ahead of the Supreme Court’s decision on coal block allocations later today and announcement of key macroeconomic indicators - inflation, forex reserves and industrial production. Consumer durables was the top gaining index up by around 0.34% whereas realty was top losing index trading down by around 1%. However, gains in tyre stocks provided some support to domestic equity benchmarks. Shares of tyre companies were up 1-3% as lower raw material costs on account of weak natural rubber and declining crude oil prices would boost margins going forward. Metal stocks such as Hindalco and Jindal Steel & Power were down 1-2% ahead of the Supreme Court's decision on coal block allocations. In stock specific movement, Punj Lloyd stock was trading up by around 8.6% to Rs 44 after rallying nearly 10% a day earlier after securing an order worth Rs 3,515 crore from PRPC Refinery. 

On global front, Asian markets were trading mixed with Nikkei 225 up by 0.38% and Hang Seng down 0.2%. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 8,100 and 27,000 levels respectively. The market breadth on BSE was positive, out of 2,672 stocks traded, 1,298 stocks advanced, while 1,281 stocks declined on the BSE.

The BSE Sensex is currently trading at 27220.52, down by 99.33 points or 0.36% after trading in a range of 27202.53 and 27328.27. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.10%, while Small cap index down by 0.15%.

The gaining sectoral indices on the BSE were Consumer Durables up by 0.34%, Power up by 0.27%, Auto up by 0.26%, INFRA up by 0.18% and FMCG up by 0.14%. On the other hand, Realty down by 1.00%, IT down by 0.86%, Bankex down by 0.60%, Oil & Gas down by 0.55% and TECK down by 0.51% were the losing indices on BSE.

The top gainers on the Sensex were Cipla up by 2.24%, Bharti Airtel up by 1.31%, Tata Motors up by 0.68%, Coal India up by 0.63% and Dr. Reddys Lab up by 0.60%. On the flip side, ICICI Bank down by 1.66%, Bajaj Auto down by 1.41%, Infosys down by 1.39%, Sesa Sterlite down by 1.27% and Larsen & Toubro down by 1.15% were the top losers.

Meanwhile, confident over the improving macro-economic indicators of the country, Finance Ministry has made a case for international rating agency Moody's to upgrade their sovereign rating of India. Finance Ministry informed Moody's that the Budget 2014-15 has provided an impetus to growth and the government is taking steps to keep the fiscal deficit under check. Indian economy witnessed better than expected growth in Q1FY15 at 5.7% y-o-y as compared to 4.7% growth recorded in same quarter last year and 4.6% in Q4FY14.

Global rating agency Moody's has assigned 'Baa3' rating on India, with stable outlook.  Moody's, rating reflects high domestic savings, adequate foreign exchange reserves and the challenges posed by large fiscal deficits, recurrent inflation and weak infrastructure.
 
However, official of rating agency had expressed concern over about fiscal deficit and the Finance Ministry has sought to comfort them on this front. The Ministry informed that fiscal deficit of the country will contain at 4.1 percent of GDP this year and lower it to 3 percent by 2016-17. The ministry also stated that an Expenditure Management Commission was set up which would look at broad contours of subsidy rationalization and could augur well for fiscal deficit management. On inflation front, the ministry has told the agency that efforts are being taken to keep inflation within the targeted levels and in case if monsoon is below normal and if production is marginally down then country's food stocks are adequate enough to take care of contingency.

The CNX Nifty is currently trading at 8135.85, down by 38.05 points or 0.47% after trading in a range of 8134.55 and 8174.55. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Cipla up by 1.91%, Bharti Airtel up by 1.19%, Power Grid Corpn up by 0.86%, Tata Power up by 0.63% and Jindal Steel & Power up by 0.63%. On the flip side, ICICI Bank down by 1.76%, Larsen & Toubro down by 1.53%, Tech Mahindra down by 1.51%, HCL Tech down by 1.48% and Sesa Sterlite down by 1.46% were the top losers.

Asian markets were trading mixed, Straits Times up by 9.21 points or 0.28% to 3,344.40, Taiwan Weighted up by 26.83 points or 0.29% to 9,434.77 and Nikkei 225 up by 58.96 points or 0.38% to 15,764.07. While, Hang Seng down 49.7 points or 0.2% to 25,190.45, Jakarta Composite down 37.43 points or 0.71% to 5,209.06, KOSPI Index down 6.85 points or 0.33% to 2,049.41 and Shanghai Composite down 1.22 points or 0.05% to 2,325.22