Post Session: Quick Review

Benchmark indices slumped in trade on Monday, weighed down by heavy selling by funds as well the retail investors in the frontline stocks, mainly those of software companies after IT major, Infosys went into tailspin on reports that some founders of the software services exporter sold off shares worth $1.1 billion. In absence of positive catalyst, local equity markets nursing heavy losses of around 1.15%, concluded below psychologically crucial 28,500 (Sensex) and 8,450 (Nifty) levels respectively. Meanwhile, broader indices too cracking under pressure, settled with losses of around 0.85%-1.25%.

On the global front, Asian shares concluded mostly lower on reports of a deeper-than-expected recession in Japan and China's trade data coming in below expectations. Revised economic data on Monday showed that Japan's recession was deeper than originally estimated. China's exports and imports in November both failed to meet market forecasts, highlighting a slowing economy. Meanwhile, receiving negative handover from Asian counterparts, European shares too were reeling under pressure. Also weighing on sentiment was S&P's Friday cut to Italy's sovereign credit rating from BBB to BBB-, only one notch above junk, citing weak growth and poor competitiveness that undermine the sustainability of its huge public debt.

Closer home, all the sectoral indices on BSE, with no surprise, concluded into negative territory, nevertheless stocks from Information Technology, TECK and Realty counters were the ones with colossal losses. Though, none of the sectoral indices stood against the test of time, some stocks managed to eke out slender gains.

Aviation space, shares of Jet Airways were locked in upper circuit on hopes of getting more market share after curbs on rival SpiceJet, which continued to lose from Friday, was down by 3%. The company issued clarifications over the weekend indicating its international flying rights are not in jeopardy, its payables to suppliers is significantly less than the Rs 1,600 crore and the DGCA has asked for a payment plan to be shared with them by December 15. Besides, insurance stocks hogged limelight in trade after reports suggested that decks were all cleared for Insurance bill, with both Congress and the Bharatiya Janata Party (BJP) being on the same page in the Rajya Sabha’s select committee on changes in India’s insurance laws. The overall market breadth on BSE ended in the favour of declines, which outnumbered advances in the ratio of 1797:1151; while 115 shares ended unchanged.

The BSE Sensex shaved off 338.70 points or 1.19% to conclude at 28119.40, after trading in a range of 28097.12 and 28494.85. 8 stocks advanced against 22 stocks declining ones on the index. (Provisional)

The broader indices too capitulated under selling pressure; the BSE Mid cap index ended down by 1.22%, while Small cap index down by 0.87%. (Provisional)

The gaining sectoral indices on the BSE were FMCG up by 0.78% while, IT down by 3.18%, TECK down by 2.58%, Realty down by 1.80%, Capital Goods down by 1.72%, INFRA down by 1.47% were the losing indices on BSE. (Provisional)

The top gainers on the Sensex were Coal India up by 2.20%, ITC up by 1.63%, Sun Pharma Inds. up by 0.91%, ONGC up by 0.63% and Bharti Airtel up by 0.61%. On the flip side, Infosys down by 4.88%, Sesa Sterlite down by 3.60%, Mahindra & Mahindra down by 3.32%, Hindalco down by 2.51% and TCS down by 2.51% were the top losers. (Provisional)

Meanwhile, with an aim to contain the fiscal target at 4.1% of GDP for current fiscal, Finance Minister Arun Jaitley has asserted that the government will come out with more measures  to rationalise subsidies. Finance Minister stressed that a series of meeting with the Expenditure Management Commission (EMC) has been taking place and the Commission is effectively working on some very valuable suggestions with regard to rationalisation of subsidies. 

Highlighting the government’s latest decisions, the minister added latest decision to link the diesel prices with market price and direct cash subsidy on pilot basis to LPG customers in select cities will help in reducing the subsidy burden of the government. Furthermore, the Centre had set up a Commission under former RBI Governor Bimal Jalan to suggest steps to lessen subsidy and help the government in effectively bringing down the fiscal deficit. On revenue collection front, the minister expressed hope that the government will able to achieve the direct tax collection target. To garner more funds, the government has initiated its disinvestment programme with latest SAIL's stake sale. It has set a target of Rs 43,425 crore through selling stakes in various PSU firms during the current fiscal.

The government’s fiscal deficit for the first seven months of this financial year recorded at Rs 4.76 lakh crore, a staggering 89.6% of the target of Rs 5.31 lakh crore for the entire financial year. The fiscal deficit for the April-October period this year was the highest since at least 1998-99 and for the corresponding period of 2013-14, the fiscal deficit was stood at 84.4% of the FY14 target.

The CNX Nifty slumped by 100.05 points or 1.17% to end at 8438.25,  after trading in a range of 8432.25 and 8546.35. 10 stocks advanced against 39 stocks declining ones the index, while 1 stock remained unchanged. (Provisional)

The top gainers on Nifty were Coal India up by 2.26%, ITC up by 1.65%, Asian Paints up by 1.13%, Ultratech Cement up by 1.08% and ONGC up by 0.82%. On the flip side, Infosys down by 4.84%, Sesa Sterlite down by 3.72%, Mahindra & Mahindra down by 3.50%, BPCL down by 2.86% and Jindal Steel & Power down by 2.84% were the top losers. (Provisional)

European markets were reeling under pressure; with UK’s FTSE 100 trading lower by 46.05 points or 0.68% to 6,696.79; Germany’s DAX sliding 41.84 points or 0.41% to 10,045.28; France’s CAC declining by 26.01 points or 0.59% to 4,393.47. (Provisional)

The Asian equity benchmarks ended mostly lower on Monday, while Shanghai Composite Index topped 3,000 for the first time since 2011 as brokerages surged on bets the rally will continue. China’s imports shrank unexpectedly in November while export growth slowed, fuelling concerns the world’s second-largest economy could be facing a sharper slowdown and adding pressure on policymakers to ramp up stimulus measures. Exports rose 4.7% from a year earlier, while imports dropped 6.7%, the biggest drop since March. Japan’s GDP fell to a seasonally adjusted -0.5%, from -0.4% in the preceding quarter. Japan’s Economy Watchers Current Index fell to a seasonally adjusted 41.5, from 44.0 in the preceding month. Japan’s Current Account rose to a seasonally adjusted 0.95T, from 0.41T in the preceding month. Taiwan’s trade balance fell more-than-expected last month. The Ministry of Finance Taiwan stated that the country’s Trade Balance fell to a seasonally adjusted annual rate of 4.22B, from 4.62B in the preceding month.