Markets continue to sulk in red; Nifty languishes below 8, 850 mark

Local equity markets after capitulating to selling pressure post hitting record high level in early deals continued trading weak on sustained profit-booking activities by market-participants by both funds and retail investors amidst negative global set-up. Bleeding with losses of around 1.25%, both Sensex and Nifty were sulking below crucial 29,350 and 8,850 levels respectively. Meanwhile, broader indices also continuing to reel under pressure were trading with losses of over 0.30%.

On the global front, Asian stock markets were trading mostly higher on Friday, with Tokyo's main index rising after Japanese data showed inflation slowed in December but industrial output rebounded. Japanese government data released on Friday showed that core consumer inflation in the world's third largest economy slowed for a fifth month in December to 2.5 percent year-on-year, down from 2.7 percent in November, on the back of plunging oil prices and weaker consumer spending. Meanwhile, Tokyo's gains were in line with a broad overnight rally on Wall Street, after the Federal Reserve signaled that growth and job creation in the world's top economy remained robust and corporate earnings were generally solid.

Closer home, most of the sectoral indices on BSE were trading mostly into negative territory, stocks from Banking, Consumer Durables and Public Sector Undertaking (PSU) counters were the prominent losers of the session. On the flip side, stocks from Realty, Power and Information Technology (IT) counters topping the gainers list on BSE, were restricting further slide of the bourses. Banking stocks tanked after Bank Of Baroda disappointed street on Friday by reporting a 68 percent (Y-o-Y) decline in profit at Rs 334 crore for quarter ended December 2014. Higher provisions and tax rate impacted the bottom-line. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1136:864; while 24 shares remained unchanged.

The BSE Sensex is currently trading at 29306.94, down by 374.83 points or 1.26% after trading in a range of 29232.96 and 29844.16. 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 0.41%, while Small cap index down by 0.30%.

The gaining sectoral indices on the BSE were Realty up by 2.28%, Power up by 0.91%, IT up by 0.34% and TECK up by 0.08% while, Bankex down by 2.30%, PSU down by 1.19%, Consumer Durables down by 1.18%, FMCG down by 0.84% and Auto down by 0.69% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.33%, BHEL up by 2.30%, Tata Power up by 1.19%, Hero MotoCorp up by 0.79% and Sesa Sterlite up by 0.70%. On the flip side, Dr. Reddys Lab down by 4.67%, SBI down by 4.10%, Coal India down by 3.28%, ICICI Bank down by 2.55% and TCS down by 2.54% were the top losers.

Meanwhile, Union Urban Development Secretary Shankar Aggarwal unveiled that the framework for Prime Minister Narendra Modi's ambitious project of developing 100 smart cities will be finalized by next month-end. The minister further said that the government in next two days would be completing the process for identification of 100 smart cities.

The government’s objective is to develop cities with technology-based governance, which will enable efficient public services and have 24x7 water and power supply, 100% sewerage, drainage and solid waste management facilities, besides top class infrastructure.

Further, the government expects a large contribution from the private sector in developing the cities as it plans to build this project on public private partnership basis. As per the envisaged plan, every city would on an average need investments to the tune of Rs 1,000 crore over next 10 years and the private sector is expected to contribute largely, nearly 80-85%, towards this development, according to the government.

Besides, Union Urban development ministry has asked the states to ensure that the cities picked under the smart cities initiative would have to meet the broad contours listed by it, including economically viable cities, meeting the requirements of 'e-governance', 'Swachh Bharat' and 'Make in India’.

Lastly, the minister unveiled that the centre would take a final call on criteria like cities accounting for 54% of incremental GDP till 2025, hill and coastal areas, tourist and religious centres and mid-sized cities. 

The CNX Nifty is currently trading at 8846.90, down by 105.45 points or 1.18% after trading in a range of 8820.00 and 8996.60. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were HCL Tech up by 8.28%, BPCL up by 3.38%, DLF up by 2.73%, NTPC up by 2.33% and BHEL up by 1.98%. On the flip side, Bank Of Baroda down by 11.40%, Dr. Reddys Lab down by 4.71%, PNB down by 4.34%, SBI down by 4.27% and Coal India down by 3.27% were the top losers.

Asian markets were trading mostly higher; with FTSE Bursa Malaysia KLCI trading higher by 2.51 points or 0.14% to 1,784.69; Straits Times trading higher by 4.86 points or 0.14% to 3,423.91; Hang Seng trading higher by 5.97 points or 0.02% to 24,601.82;  Jakarta Composite trading higher by 25.68 points or 0.49% to 5,288.40; Nikkei 225 trading higher by 68.17 points or 0.39% to 17,674.39. On the flip side,Taiwan Weighted down by 64.99 points or 0.69% to 9,361.91; Shanghai Composite down by 18.66 points or 0.57% to 3,243.64 and KOSPI Index down by 1.76 points or 0.09% to 1,949.26