Benchmarks extend losses; Bankex, Power drag

Indian equity markets extended losses and continued trading in red in the late afternoon session on account of selling in frontline blue chip counters and taking cues from global counterparts. The sentiments were on pessimistic note from the start of the trade as strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought. Traders were seen selling in Bankex, Power and Capital Goods sector stocks. In scrip specific development, Monnet Ispat & Energy was trading firm on reports that it is gearing up for its largest ever consolidation and may be set to sell stake in power and sponge business. The company is likely to sell 87.5% in Monnet Power and 35.17% in Orissa Sponge. Suven Life Sciences was trading in green after the company reported that it had got patent for neuro-degenerative drug.

On the global front, the Asian markets were trading mostly in red while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,800 and 28,900 levels respectively. The market breadth on BSE was negative in the ratio of 870:1803 while 126 scrips remained unchanged.

The BSE Sensex is currently trading at 28883.79, down by 565.16 points or 1.92% after trading in a range of 28843.48 and 29321.06. There were 2 stocks advancing against 28 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.14%, while Small cap index down by 0.81%.

The losing sectoral indices on the BSE were Bankex down by 2.65%, Power down by 2.45%, Capital Goods down by 2.44%, IT down by 2.43%, TECK down by 2.27%.

The top gainers on the Sensex were Hindustan Unilever up by 2.66% and Dr. Reddy’s Lab up by 0.71%. On the flip side, ICICI Bank down by 4.00%, Sesa Sterlite down by 3.86%, Axis Bank down by 3.81%, GAIL India down by 3.74% and BHEL down by 3.43% were the top losers.

Meanwhile, strengthening the national auditor’s claims that allocation of mines over the years had caused considerable losses to the exchequer, the government has garnered Rs 5164 crore from the sale of two mines to Jaypee Cement and Ambuja Cement, with the cumulative proceeds from the auction swelling to Rs 1.57 lakh crore.

In a fierce biddings on the fourth day of second tranche of ongoing auctions, which lasted for hours, while Ambuja Cement managed to clinch Gare-Palma Sector-IV/8 block in Chhattisgarh by biddng Rs 2291 per tonne, Jaypee Cement Corporation grabbed Mandla-South block in Madhya Pradesh, by bidding at Rs 1852 per tonne. Auction for Mandla South, began at Rs 1,850 per tonne, while for Gare Palma IV/8 started at Rs. 1,675 per tonne.

Put together in these four days of auction, the government has raised Rs 1.57 lakh crore, which includes Rs 1 lakh crore from auction of 19 mines in the first round. Additionally, two more coal blocks - Utkal C and Lohari - have been put up for auction on Monday. The amount of proceeds has been calculated based on extractable reserves and highest bid price.

The auctions follow the Supreme Court's decision last year to cancel the allocation of 204 coal mines. Prime Minister Narendra Modi had earlier this month  raised some doubts after he underscored CAG's astronomical Rs 1.86 lakh crore loss figure in coal block allocation, but with auction of less than 10% of those mines (19 mines in first tranche) alone  that has garnered Rs 1.10 lakh crore has proved these claims to be right.

The CNX Nifty is currently trading at 8775.30, down by 162.45 points or 1.82% after trading in a range of 8754.10 and 8891.30. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Jindal Steel & Power up by 6.06%, Hindustan Unilever up by 2.61%, Lupin up by 1.50%, Dr. Reddy’s Lab up by 0.79% and NMDC up by 0.63%.

On the flip side, Ambuja Cement down by 3.84%, Sesa Sterlite down by 3.83%, ICICI Bank down by 3.78%, Ultratech Cement down by 3.66% and BHEL down by 3.61% were the top losers.

The Asian markets were trading mostly in red; Nikkei 225 decreased 180.45 points or 0.95% to 18,790.55, Jakarta Composite decreased 86.67 points or 1.57% to 5,428.12, Taiwan Weighted decreased 82.79 points or 0.86% to 9,562.98, Hang Seng decreased 40.95 points or 0.17% to 24,123.05, KOSPI Index decreased 20.12 points or 1% to 1,992.82, Straits Times decreased 15.92 points or 0.47% to 3,401.59 and FTSE Bursa Malaysia KLCI decreased 11.88 points or 0.66% to 1,795.08. On the other hand, Shanghai Composite increased 61.22 points or 1.89% to 3,302.41.

The European markets were trading in red; Germany’s DAX decreased 82.8 points or 0.72% to 11,468.17, France’s CAC decreased 42.47 points or 0.86% to 4,921.88 and UK’s FTSE 100 decreased 37.29 points or 0.54% to 6,874.51.