Benchmarks extend losses; Metal, Consumer Durables lead

Indian equity markets extend losses and continued trading in red in the late afternoon session on account of selling in frontline blue chip counters taking cues from regional counterparts. Traders were seen piling positions in FMCG stocks while selling was witnessed in Metal, Consumer Durables and Capital Goods sector stocks. In scrip specific development, Bhushan Steel was trading in red after market regulator SEBI barred some of its promoters from accessing the securities market, accusing them of misusing the stock exchange platform to generate long-term capital gains and, thus, converting unaccounted money into legitimate one. Jet Airways (India) was trading in green on successfully concluding a five-year syndicated loan facility of $150 million in the Gulf.

The markets may remain volatile in the near term as traders may roll over positions in the Futures & Options (F&O) segment from near month i.e. December 2014 series to next month i.e. January 2015 series. The near month December 2014 derivatives contracts will expire on Wednesday i.e. December 24, 20014. The stock market will remain close on Thursday i.e. December 25, 2014, on account of Christmas holiday.

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 8,300 and 27,600 levels respectively. The market breadth on BSE was negative in the ratio of 952:1786 while 122 scrips remained unchanged.

The BSE Sensex is currently trading at 27525.58, down by 176.21 points or 0.64% after trading in a range of 27489.01 and 27851.10. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.42%, while Small cap index down by 0.61%.

The gaining sectoral indices on the BSE were FMCG up by 0.05% while, Metal down by 1.78%, Consumer Durables down by 1.30%, Capital Goods down by 1.23%, IT down by 1.02%, Realty down by 0.90% were the losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 1.67%, Bharti Airtel up by 1.66%, Hero MotoCorp up by 1.04%, Cipla up by 0.91% and NTPC up by 0.61%. On the flip side, Sesa Sterlite down by 3.34%, Tata Power down by 2.74%, Tata Steel down by 2.15%, Hindalco down by 1.77% and HDFC down by 1.42% were the top losers.

Meanwhile, a parliamentary panel has suggested the government to put a blanket ban on foreign direct investment (FDI) in brown field pharma units. A Standing Committee on Commerce, in its latest report, has highlighted that under existing policy domestic firms are facing threat due to takeover by MNCs and it could affect India's ability to produce low-cost quality generic drugs.

Highlighting the rationale  behind its recommendations, the report noted that the conditions imposed for approving FDI proposals in brown field pharma sector are not comprehensive and do not cater to the objective/purpose for which FDI is allowed. Further, there is no compulsion on transfer of technology and similar other conditions that can bring qualitative change to domestic pharma industry, the report added. Expressing the fear over the increasing acquisitions of domestic firms by MNCs, Panel stated that it would affect competition as well as take control of the larger share India's pharma industry and driving the domestic market as per their choice and desire.

The committee further added that FDI in pharma sector may be rigorously promoted for green field projects rather than brown field projects. It recommends that the Department of Industrial Policy and Promotion (DIPP) to work in tandem with Ministry of Health to ensure that FDI in pharma sector does not impinge on availability of affordable drugs to the Indian public. On the issue of rising price anomalies in the Indian pharma sector, the panel said that a ceiling may be fixed for introductory price of generic drugs in the country.

The CNX Nifty is currently trading at 8266.90, down by 57.10 points or 0.69% after trading in a range of 8259.60 and 8364.75. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 1.83%, Power Grid up by 1.46%, Bajaj Auto up by 1.44%, Grasim Industries up by 1.36% and Jindal Steel & Power up by 1.10%. On the flip side, Sesa Sterlite down by 3.53%, HCL Tech down by 3.05%, Tata Power down by 2.91%, Tata Steel down by 2.25% and Hindalco down by 1.73% were the top losers.

The Asian markets were trading mostly in green; Taiwan Weighted increased 2.71 points or 0.03% to 9,097.71, Straits Times increased 5.35 points or 0.16% to 3,336.31, FTSE Bursa Malaysia KLCI increased 9.59 points or 0.55% to 1,753.64 and Jakarta Composite increased 21.85 points or 0.43% to 5,147.62.

On the other hand, Shanghai Composite decreased 94.83 points or 3.03% to 3,032.61, Hang Seng decreased 74.88 points or 0.32% to 23,333.69 and KOSPI Index decreased 4.1 points or 0.21% to 1,939.02. Japan’s Stock Exchange was closed on account of ‘Emperor’s Birthday’ holiday.

The European markets were trading in green; France’s CAC increased 27.58 points or 0.65% to 4,282.01, Germany’s DAX increased 31.64 points or 0.32% to 9,897.40 and UK’s FTSE 100 increased 42.92 points or 0.65% to 6,619.66.