Benchmarks add losses; Nifty slips below 8550 mark

Indian bourses adding losses, continued to trade in red in the late morning session, with the Sensex losing over 100 points and Nifty falling below the 8550 level, on increased selling by funds and retail investors ahead of Reserve Bank of India’s (RBI's) monetary policy review. The RBI is likely to keep interest rates unchanged, staying focused on containing inflation, while adopting a more dovish tone in response to the government's call for help to revive economic growth. Some mild weakness also came on report that foreign portfolio investors (FPIs) sold shares worth a net Rs 12.36 crore on December 1, 2014. However, losses remained capped as Core sector output in the month of October rose to four-month high of 6.3 percent in October as compared to 1.9% in September primarily led by better output in coal, refinery products and electricity. The eight core sectors have a combined weight of about 38 percent in the Index of Industrial Production, indicating a better show of the IIP later in the month.

On the sectoral front, stocks from Power, Capital Goods and FMCG counters were supporting the markets’ uptrend, while those from Auto, information technology (IT) and Banking counters were adding to the underlying cautious undertone. In scrip specific development, Shares of IRB Infrastructure Developers have surged after the company received provisional certificate by the Competent Authority effective November 27, 2014. On the other hand, shares of Bajaj Auto have declined after the company registered a marginal drop in total sales to 309,259 units in November 2014 against 310,591 units in November 2013.

On global front, Asian markets after a sluggish start have slowly started moving up, though the trade remains cautious after Moody’s downgraded Japan's debt rating by one notch to A1 from Aa3. Back home, Indian rupee strengthened by four paise to 61.98 against the US dollar in early trade due to increased selling of the American currency by exporters ahead of RBI's policy review.

The market breadth on BSE was negative, out of 2346 stocks traded, 1050 stocks advanced, while 1188 stocks declined on the BSE.

The BSE Sensex is currently trading at 28457.69 down by 101.93 points or 0.36% after trading in a range of 28541.96 and 28446.22. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.02%, while Small cap index down by 0.11%.

The gaining sectoral indices on the BSE were Power up by 0.39%, Capital Goods up by 0.38%, FMCG up by 0.19% and Metal up by 0.18% while, Auto down by 0.95%, IT down by 0.80%, TECK down by 0.54%, Bankex down by 0.47% and Consumer Durables down by 0.43% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.07%, NTPC up by 0.96%, Tata Power up by 0.94%, BHEL up by 0.93% and Sesa Sterlite up by 0.90%. On the flip side, Infosys down by 1.68%, Mahindra & Mahindra down by 1.40%, Tata Motors down by 1.27%, Dr. Reddys Lab down by 1.09% and Wipro down by 1.03% were the top losers.

Meanwhile, Lok Sabha has passed the Textile Undertakings (Nationalisation) Laws (Amendment and Validation) Bill, 2014, which will replaces an ordinance passed by the government and will free the ailing National Textile Corporation having property worth Rs 25 lakh crore, from rent control laws, .

Textile Minister Santosh Kumar Gangwar said that the bill aims to ensure proper and effective implementation of the revival scheme for sick textile units. He said that 'We need to evolve various ways and means to run the mills. It is our objective to give employment to more and more people,” he further added that NTC mills are turning around and government is committed to turning them around. NTC has properties worth Rs 25 lakh crore and the Bill would help to run the NTC smoothly so that in future there is no complaint against the runing of NTC

The Minister stated that there is a need to protect public investment in the acquired textile undertakings to explicitly clarify the status of such vesting of the lease-hold rights in the central government and the government would come up with a new textile policy soon.

NTC was set up in April 1968 for managing the affairs of sick textile undertakings in the private sector, taken over by the government. Starting with 16 mills, the number went up to 119. Out of the 119 mills, only 23 mills are currently operational.

The CNX Nifty is currently trading at 8525.55 down by 30.35 points or 0.35% after trading in a range of 8548.35 and 8520.45. There were 19 stocks advancing against 11 declining on the index.

The top gainers on Nifty were Jindal Steel & Power up by 3.65%, Cairn India up by 2.22%, NMDC up by 1.30%, Sesa Sterlite up by 1.15% and Tata Power up by 1.11%. On the flip side, BPCL down by 2.97%, Asian Paints down by 1.96%, Infosys down by 1.67%, Mahindra & Mahindra down by 1.29% and Indusind Bank down by 1.29% were the top losers.

Asian markets have turned mostly in green, Nikkei 225 up by 0.22%, Shanghai Composite was up by 0.80%, Jakarta Composite gained 0.44%, Straits Times was higher by 0.85% and Hang Seng gained 0.40%. On the other hand, Taiwan Weighted was down by 0.89%, FTSE Bursa Malaysia KLCI lost 0.43% and KOSPI Index decreased by 0.11%.