Markets recoup most of the losses; Nifty reclaims 8000 level

Local equity markets though recovered most of their losses, yet continued to trade weak with losses in the range of 0.15%-0.40%. Both, Sensex and Nifty witnessing bargain buying activities, were trading above psychologically crucial 26,700 and 8,000 levels respectively. Nevertheless, the session remained daunting for broader indices which were nursing heavy losses of around 0.50%-1.10%. Sentiment mainly took a hit after rupee depreciated further and continued trading beyond psychological ‘63/$’ level in the wake of global turmoil in stocks and currencies. 

Risk appetite which took a hit after Russia’s sharp increase in interest rates reinforced concerns about the global economy at a time when oil prices slid to multi year low, continued to pressurize sentiment as this stoked fears of foreign investors pulling out their money from emerging markets’ assets. On Tuesday, FIIs sold cash shares worth Rs 1,247 crore, extending their selling streak to a sixth consecutive session. However, if some reports are to be believed then markets have recouped most of their losses as LIC, a government-run entity, brought into domestic share markets to arrest the freefall of the markets.

On the global front, Asia pacific shares were trading mixed; with Japanese stocks moving away from a 6-1/2-week low as hopes of a continuation of the US Federal Reserve's dovish stance helped sentiment recover.

Closer home, most of the sectoral indices on BSE were reeling under pressure, stocks from Auto, Consumer Durables and FMCG counters were the worst performers of the session. On the flip side, much of the buying is being witnessed by shares from Metal, PSU and Oil & Gas counters. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1706:821; while 66 shares remained unchanged.

The BSE Sensex is currently trading at 26740.08, down by 41.36 points or 0.15% after trading in a range of 26469.42 and 26834.43. 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 0.51%, while Small cap index down by 1.06%.

The gaining sectoral indices on the BSE were Metal up by 1.09%, PSU up by 0.66%, Oil & Gas up by 0.61% and INFRA up by 0.38% while, Auto down by 1.30%, Consumer Durables down by 1.19%, FMCG down by 1.13%, Realty down by 0.97% and Power down by 0.64% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.12%, ONGC up by 2.18%, Sesa Sterlite up by 2.11%, Dr. Reddys Lab up by 1.84% and SBI up by 1.66%. On the flip side, Tata Power down by 2.81%, Cipla down by 2.60%, ITC down by 2.47%, Hero MotoCorp down by 1.80% and Sun Pharma Inds. down by 1.55% were the top losers.

Meanwhile, in first of its kind initiative, Government is planning to come out with a six-month report card, with Prime Minister Narendra Modi ordering all ministers to submit details of their performances and achievements by this month end in the form of an e-booklet and a video clip.

Though the government has not yet decided how it would like to display its six months achievements before the nation, the emphasis would be to mass-scale publicity at the grass-root level. Reports suggest that government could hold press conferences or use social networking platform to illustrate its achievements and have instructed states and MPs to distribute booklets in their respective constituencies.

The plan to highlight the achievements of the government assumes importance for NDA government as several states are heading for assembly polls and bypolls.

In its six months in power, the Narendra Modi-led government at the Centre has taken some crucial administrative measures including opening up Foreign Direct Investment (FDI) in Railways, deregulating fuel and announcing mega missions like 'Make in India'.

The CNX Nifty is currently trading at 8,037.25, down by 30.35 points or 0.38% after trading in a range of 7961.35 and 8080.65. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Tata Steel up by 2.89%, NMDC up by 2.57%, Sesa Sterlite up by 2.56%, ONGC up by 2.10% and Dr. Reddys Lab up by 1.74%. On the flip side, Kotak Mahindra Bank down by 3.39%, DLF down by 2.98%, Cipla down by 2.86%, Tata Power down by 2.50% and ITC down by 2.48% were the top losers.

Asian markets were trading mixed; Jakarta Composite trading higher by 6.4 points or 0.13% to 5,032.43; FTSE Bursa Malaysia KLCI gaining by 9.12 points or 0.54% to 1,683.06; Shanghai Composite rallying by 37.87 points or 1.25% to 3,059.39; Nikkei 225 advancing by 64.41 points or 0.38% to 16,819.73.

On the flip side, Taiwan Weighted was trading lower by 122.55 points or 1.37% to 8,828.36; Hang Seng sliding by 38.92 points or 0.17% to 22,631.58; KOSPI Index shedding 3.97 points or 0.21% to 1,900.16 and Straits Times edging lower by 3.64 points or 0.11% to 3,211.45