Markets continue to trade in negative territory

Indian equity benchmarks, after hitting all-time highs in early trade slipped into the negative territory on account of fresh selling in capital goods, metal and oil and gas stocks. Sentiments got a hit as India Ratings revised down its India’s economic growth estimate for 2014-15 fiscal to 5.6%. Most of the secotral indices were trading in red with capital goods as the top losing index trading down by around 1.37%. However, the losses remained capped as sharp buying witnessed in FMCG and consumer durables stocks provided support to the domestic benchmarks. The CII statement the ministry-expansion will help improve the focus on economic recovery, provided support to markets sentiments. Broader indices outperformed the key benchmarks as both mid and small cap indices were trading up by around 0.10%. In stock specific movement, Ucal Fuel Systems was locked in upper circuit of 20% at Rs 101, also its 52-week high, after reporting over four-fold jump in net profit at Rs 8.40 crore for Q2FY15 on back of strong operational performance.

On global front, most of Asian markets were trading in green with Taiwan Weighted up by 1.54% and Hang Seng up by 1.69% as US jobs data pointed to solid economic growth. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 8,300 and 27,500 levels respectively. The market breadth on BSE was negative, out of 2,602 stocks traded, 1,292 stocks advanced, while 1,217 stocks declined on the BSE.

The BSE Sensex is currently trading at 27811.83, down by 56.80 points or 0.20% after trading in a range of 27811.10 and 28027.96. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.09%, while Small cap index up by 0.17%.

The gaining sectoral indices on the BSE were FMCG up by 1.94%, Consumer Durables up by 0.61%, Realty up by 0.28% and Power up by 0.05%. On the other hand, Capital Goods down by 1.37%, Metal down by 0.70%, Oil & Gas down by 0.66%, IT down by 0.60% and TECK down by 0.49% were the losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.92%, Sun Pharma Inds up by 2.76%, BHEL up by 1.32%, Coal India up by 1.28% and Hero MotoCorp up by 0.68%. On the flip side, Larsen & Toubro down by 2.64%, ONGC down by 2.41%, Tata Steel down by 2.09%, Tata Motors down by 1.80% and Hindalco down by 1.79% were the top losers.

As Prime Minister expanded Cabinet to speed up economic reforms, the Confederation of Indian Industry (CII) has stated that the ministry-expansion will help improve the focus on economic recovery. The CII president Ajay Shriram has asserted that at a time when the economy is recovering, it is important to fast-track policies to strengthen the growth and the latest government move of induction of new ministers will streamline governance and bring in new ideas for the economic reforms process.

The CII President further stated that business sentiment in the country is picking up since the new government took over. Further, ministerial expansion will support faster decision-making, efficient administration and faster clearances to ensure new investments.

Indian Prime Minister Narendra Modi on November 9 added 21 new ministers to speed up economic reforms. The strength of the Union Council of Ministers goes up from 45 to 66 of which, 27 including the Prime Minister are of Cabinet rank, 13 Ministers of State with Independent Charge and 26 Ministers of State.

Indian economic had been struggling with slowdown over the past two fiscal and its growth stayed below 5% for the second fiscal in a row at 4.7% during FY14. The factors like high interest rate and stubborn inflation, low investments and slow execution of infrastructure projects have impacted country’s economy growth.  However, the economy has shown signs of nascent recovery and expanded at its fastest pace in more than two years by 5.7% during Q1FY15 as compared to 4.7% growth recorded in same quarter last year.

The CNX Nifty is currently trading at 8324.10, down by 12.90 points or 0.15% after trading in a range of 8316.85 and 8383.05. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were ITC up by 3.15%, Sun Pharma Inds up by 2.53%, Bank Of Baroda up by 2.01%, BHEL up by 1.71% and DLF up by 1.15%. On the flip side, Larsen & Toubro down by 2.75%, Jindal Steel & Power down by 2.51%, ONGC down by 2.36%, Hindalco down by 1.99% and Tata Steel down by 1.67% were the top losers.

Most of Asian markets were trading in green, FTSE Bursa Malaysia KLCI up by5.7 points or 0.31% to 1,829.89, KOSPI Index up by18.36 points or 0.95% to 1,958.23, Straits Times up by 20.59 points or 0.63% to 3,306.98, Shanghai Composite up by 40.29 points or 1.67% to 2,458.46, Taiwan Weighted up by 137.36 points or 1.54% to 9,049.98, Hang Seng up by 397.51 points or 1.69% to 23,947.75. While, Nikkei 225 down 113.02 points or 0.67% to 16,767.36 and Jakarta Composite down 6.46 points or 0.13% to 4,980.96.