Benchmarks plunge to day’s low; trade with nasty cut of over 1.25%

Languishing at day’s low, local equity markets were trading with nasty cut of over 1.25%, which dragged Sensex and Nifty below psychologically crucial 27,000 and 8,150 levels respectively. Meanwhile, broader indices too capitulating to selling pressure were trading with heavy losses of around 2.50%. Doubts about whether India could afford to cut interest rates given risk associated to this move that could trigger foreign outflow, mainly led to pessimistic milieu. Additionally, sentiments also took a hit after India’s trade deficit, exerting pressure on country’s external sector, widened to 18-month high of $16.86 billion in month of November, as compared to $9.57 in the same month previous year and $13.36 billion in the previous month October.

On the global front, sliding oil prices and a downbeat China factory survey weighed on Asian shares on Tuesday, while the rouble which jumped against the dollar after Russia sharply increased its benchmark interest rate in a bid to halt a collapse in its currency, also spooked mood across Asian pacific region.

Closer home, most of the sectoral indices on BSE were reeling under pressure, however stocks from Technology and Information Technology counters were the only gainers of the session. On the flip side, stocks from Metal, Realty and Consumer Durable counters were the prominent losers of the session. Meanwhile, shares of PSU OMCs were trading higher tailing multi year low international oil prices. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1775:219; while 11 shares remained unchanged.

The BSE Sensex is currently trading at 26943.34, down by 376.22 points or 1.38% after trading in a range of 26845.54 and 27199.37. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 2.03%, while Small cap index slumped by 2.79%.

The gaining sectoral indices on the BSE were IT up by 1.94%, TECK up by 1.35% while, Metal down by 3.17%, Realty down by 2.68%, Consumer Durables down by 2.47%, FMCG down by 2.36%, Bankex down by 2.26% were the losing indices on BSE.

The top gainers on the Sensex were TCS up by 2.84%, BHEL up by 1.35%, Infosys up by 1.15% and Wipro up by 0.74%. On the flip side, Sesa Sterlite down by 5.66%, Hindalco down by 5.48%, Dr. Reddys Lab down by 4.93%, ICICI Bank down by 3.33% and ITC down by 3.08% were the top losers.

The CNX Nifty is currently trading at 8113.90, down by 105.70 points or 1.29% after trading in a range of 8082.80 and 8189.35. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were HCL Tech. up by 4.09%, TCS up by 3.13%, Tech Mahindra up by 3.10%, BPCL up by 2.30% and BHEL up by 1.35%. On the flip side, Sesa Sterlite down by 5.55%, Hindalco down by 5.32%, Dr. Reddys Lab down by 4.95%, Bank Of Baroda down by 3.72% and Jindal Steel & Power down by 3.52% were the top losers.

Asian markets were trading mostly lower; with Nikkei 225 trading lower by 344.08 points or 2.01% to 16,755.32; Hang Seng shedding 243.87 points or 1.06% to 22,783.98; Jakarta Composite sliding by 98.11 points or 1.92% to 5,010.32; Straits Times declining by 66.31 points or 2.01% to 3,227.83; Taiwan Weighted edging lower by 34.72 points or 0.39% to 8,950.91; KOSPI Index plunging by 16.23 points or 0.85% to 1,904.13 and FTSE Bursa Malaysia KLCI losing 8.63 points or 0.51% to 1,688.68. On the flip side, Shanghai Composite trading higher by 58.14 points or 1.97% to 3,011.56 was the lone gainer on the index.