Benchmarks extend losses; Realty, IT drag

Indian equity markets extend losses and continue to trade weak in the late afternoon session on account of selling in frontline blue chip counters. Traders were seen piling positions in Infra, Power and Capital Goods sector while selling was witnessed in Realty, IT and Consumer Durables sector stocks. Hectic activity was witnessed in shares of gems and jewellery companies, which were trading under pressure after Reserve Bank of India (RBI) deputy governor S.S. Mundra stated that the central bank was talking to the government to raise curbs on gold imports. Sugar stocks were trading firm on media reports that the government is likely to subsidize the production of ethanol for blending with petrol. In scrip specific development, Financial Technology India was trading in green after the company-approved sale of its 100% stake in Mauritius-based Bourses Africa for $40.5 million to Continental Africa Holdings.

On the global front, the Asian markets were trading mostly in green while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,450 and 28,200 levels respectively. The market breadth on BSE was positive in the ratio of 1588:1340 while 120 scrips remained unchanged.

The BSE Sensex is currently trading at 28140.15, down by 37.73 points or 0.13% after trading in a range of 28125.75 and 28282.85. 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 0.12%, while Small cap index up by 0.57%.

The gaining sectoral indices on the BSE were Infra up by 0.91%, Power up by 0.88%, Capital Goods up by 0.56%, Metal up by 0.53%, Auto up by 0.44% while, Realty down by 1.14%, IT down by 0.77%, Consumer Durables down by 0.49%, TECK down by 0.21%, Oil & Gas down by 0.14% were the losing indices on BSE.

The top gainers on the Sensex were Sesa Sterlite up by 3.20%, Bharti Airtel up by 1.71%, NTPC up by 1.03%, HDFC Bank up by 0.92% and Mahindra & Mahindra up by 0.69%. On the flip side, Hindalco down by 1.87%, HDFC down by 1.51%, TCS down by 1.08%, Sun Pharma down by 1.07% and ONGC down by 0.91% were the top losers.

Meanwhile, the surging gold import that has led India’s trade deficit in October increasing by 26.06 percent at $13.35 billion, from $10.59 billion in the corresponding month of last year and which is putting pressure on the Current Account Deficit, has made the Reserve Bank of India (RBI) to discuss the matter with the government to curb its imports.Gold has seen a sharp surge in the recent months, in October alone gold import surged almost four times to $4.17 billion from $1.09 billion same month a year ago.

RBI Deputy Governor S S Mundra was reported saying that a policy relook is warranted with the surge in gold import and further view will be taken after the discussions of the RBI and the government. Gold imports have touched 150 tonnes in October, as against 24 tonnes a year ago. Worried over the rising trend in gold imports, the government last week held a meeting to discuss ways to curb the import of the precious metal.

Last year in August the previous government had imposed severe restrictions on gold imports and raised import duty to 10 percent in order to check burgeoning current account deficit and sliding rupee, but in May this year it eased certain rules and allowed private agencies to import gold under 80:20 scheme.

The CNX Nifty is currently trading at 8411.40, down by 19.35 points or 0.23% after trading in a range of 8408.55 and 8454.50. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Sesa Sterlite up by 2.84% and Bharti Airtel up by 1.70% and PNB up by 1.46% and Power Grid Corporation up by 1.33% and HDFC Bank up by 1.03%. On the flip side, Hindalco down by 1.96%, HDFC down by 1.85%, DLF down by 1.65%, Ultratech Cement down by 1.46% and Sun Pharma down by 1.27% were the top losers.

The Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 6.76 points or 0.37% to 1,813.24, Straits Times increased 17.15 points or 0.52% to 3,305.82, KOSPI Index increased 23.38 points or 1.2% to 1,967.01, Jakarta Composite increased 37.07 points or 0.73% to 5,091.01 and Nikkei 225 increased 370.26 points or 2.18% to 17,344.06.

On the other hand, Hang Seng decreased 267.91 points or 1.13% to 23,529.17, Taiwan Weighted decreased 25.32 points or 0.28% to 8,859.07 and Shanghai Composite decreased 17.64 points or 0.71% to 2,456.37.

The European markets were trading in green; France’s CAC increased 2.85 points or 0.07% to 4,228.95, Germany’s DAX increased 29.08 points or 0.31% to 9,335.43 and UK’s FTSE 100 increased 8.2 points or 0.12% to 6,680.17.