Benchmarks extend losses; Consumer Durables, Metal drag

Indian equity markets extended losses in the late afternoon session on account of selling in frontline blue chip counters. The sentiments took a hit as India’s trade deficit, exerting pressure on country’s external sector as well as domestic currency more than doubled at $14.25 billion in month of September as compared to $6.12 billion in the same month previous year as exports grew marginally and imports continued to expand at higher pace. Traders were seen piling positions in FMCG, Realty and PSU while selling was witnessed in Consumer Durables, Metal and Oil & Gas sector stocks. In scrip specific development, Bajaj Auto was trading under pressure after the company reported a 29.41 percent decline in net profit for the quarter ended September. Hectic buying activity was witnessed in oil marketing companies like BPCL and HPCL on making Rs 3.56 per liter gain in diesel as crude oil prices fell further in international markets. 

On the global front, the Asian markets were trading mostly in red while the European markets were trading mostly on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 7,850 and 26,300 levels respectively. The market breadth on BSE was negative in the ratio of 993:1754 while 105 scrips remained unchanged.

The BSE Sensex is currently trading at 26255.60, down by 93.73 points or 0.36% after trading in a range of 26219.87 and 26462.08. There were 10 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.84%, while Small cap index down by 1.01%.

The gaining sectoral indices on the BSE were FMCG up by 0.65%, Realty up by 0.12%, PSU up by 0.04% while, Consumer Durables down by 2.06%, Metal down by 1.26%, Oil & Gas down by 1.02%, Power down by 1.01%, Capital Goods down by 0.81% were the losing indices on BSE.

The top gainers on the Sensex were Cipla up by 2.33%, GAIL India up by 1.64%, Coal India up by 1.53%, Hindustan Unilever up by 1.49% and ITC up by 1.09%. On the flip side, Hindalco down by 4.00%, Sesa Sterlite down by 3.59%, Mahindra & Mahindra down by 3.02%, Tata Steel down by 1.94% and Reliance Industries down by 1.94% were the top losers.

Meanwhile, amid falling global crude oil prices, Finance Secretary Arvind Mayaram has asserted that declining crude oil price will have favourable implications for the country. However, there is no need to be over optimistic as winter demand and global economic uncertainty would put upward pressure on oil prices in coming future, Finance Secretary added.

Benchmark Brent crude has fallen to almost four-year low at around $82 per barrel on account of oversupply and low demand from major economies mainly China and the US. With international oil prices dropping to multi-year lows, government's oil subsidy bill is likely to be slashed by over 60 percent in the current fiscal which in turn will help bridging the fiscal deficit.

The government currently controls diesel, domestic LPG and kerosene and prices them at rates below cost. Under-recovery or revenue loss arising out of selling diesel, domestic cooking gas (LPG) and kerosene at prices lower than imported cost is estimated at Rs 86,080 crore for current fiscal which is lower than Rs 1,39,869 crore gross under-recovery last fiscal.

Diesel prices have been raised by up to 50 paisa a litre every month since January 2013. The hikes together with a sharp drop in global oil prices have helped wipe out the under-recovery or loss on diesel. Presently, oil firms in the country are making Rs 2.25-2.50 a litre profit on diesel, which should have been passed to consumers in form of a price cut but the same has been delayed due to assembly elections in states include Maharashtra and Haryana.

The CNX Nifty is currently trading at 7831.10, down by 32.90 points or 0.42% after trading in a range of 7817.80 and 7893.90. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were NMDC up by 2.96%, DLF up by 2.95%, BPCL up by 2.70%, Cipla up by 2.26% and GAIL India up by 1.70%. On the flip side, Ultratech Cement down by 5.17%, Hindalco down by 3.84%, Grasim Industries down by 3.71%, Sesa Sterlite down by 3.49% and Cairn India down by 3.47% were the top losers.

The Asian markets were trading mostly in red; Nikkei 225 decreased 335.14 points or 2.22% to 14,738.38, Hang Seng decreased 239.11 points or 1.03% to 22,900.94, Straits Times decreased 37.57 points or 1.17% to 3,161.15, Taiwan Weighted decreased 21.82 points or 0.25% to 8,633.69, Shanghai Composite decreased 17.17 points or 0.72% to 2,356.50, FTSE Bursa Malaysia KLCI decreased 16.35 points or 0.92% to 1,770.49 and KOSPI Index decreased 7.08 points or 0.37% to 1,918.83.

On the other hand, Jakarta Composite increased 7.12 points or 0.14% to 4,970.06.

The European markets were trading mostly in green; UK’s FTSE 100 increased 14.87 points or 0.24% to 6,226.51 and Germany’s DAX increased 24.02 points or 0.28% to 8,595.97 while, France’s CAC decreased 5.29 points or 0.13% to 3,934.43.