Markets languish at day’s low with steep losses of over a percent

Local equity markets were languishing at day’s low point with steep losses of over a percent on sustained selling activities by market-participants in absence of positive triggers amidst somber global cues. Meanwhile, adjustments related to F&O expiry also played out on the sentiment. Both, Sensex and Nifty, hitting ten weeks low, were trading below psychologically crucial 27,800 and 8,450 levels respectively. Meanwhile, broader indices also participating into gut were down and out with losses of around 0.40-0.60%.

On the global front, Asian equities were trading mostly lower on Thursday following a sharp selloff on Wall Street overnight and an escalation of political turmoil in Yemen. Thursday after Saudi Arabia announced it began military operations in Yemen. The operation involves 10 countries, including Gulf nations, and is aimed at fighting Houthi militants who want to topple the government.

Closer home, with selling being broad-based, most of the sectoral indices on BSE were reeling under pressure, nevertheless stocks from Metal, Information Technology and Technology counters witnessing the worst drubbing turned out to be the top losers of the session. On the flip side only stocks from Capital Goods and Power counters were the top gainers of the session. In stock-specific action, airline stocks fell after surge in crude oil prices. The overall market breadth on BSE was in the favour of declines which thumped advances in the ratio of 1278:720; while 36 shares remained unchanged.

The BSE Sensex is currently trading at 27756.09, down by 355.74 points or 1.27% after trading in a range of 27746.20 and 27997.14. There were 9 stocks advancing against 21 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 0.66%.

The gaining sectoral indices on the BSE were Capital Goods up by 0.43% and Power up by 0.34% while, Metal down by 1.53%, IT down by 1.34%, TECK down by 0.98%, Bankex down by 0.97% and PSU down by 0.66% were the losing indices on BSE.

The top gainers on the Sensex were BHEL up by 2.60%, Bharti Airtel up by 0.92%, Larsen & Toubro up by 0.54%, GAIL India up by 0.34% and Hero MotoCorp up by 0.32%. On the flip side, HDFC down by 4.56%, Infosys down by 2.74%, Coal India down by 2.54%, Sesa Sterlite down by 2.17% and Hindustan Unilever down by 2.13% were the top losers.

Meanwhile, based on wide consultations with all the states and Union Territories, Kerala Finance Minister, K M Mani has been appointed as the Chairman of the Empowered Committee of State Finance Ministers on Goods and Services Tax (GST), an indirect tax regime, which is to be rolled out from April 2016. Earlier on March 20, the GST Empowered Committee met Union Finance Minister Arun Jaitley wherein state Finance Ministers asked the FM to select the new Chairman. The meeting although saw the attendance of 14 Ministers from the States and Union Territories, a decision could not be taken at that meeting as some ministers could not attend it due to preoccupation with state budgets.

The Empowered Committee Chairman's post fell vacant after Abdul Rahim Rather, the former finance minister of Jammu & Kashmir, quit following the defeat of National Conference in state elections held in December. The chairman of this Empowered Committee has generally been from an opposition-ruled state and the Mani, who represents Kerala Congress (M) and is also a senior finance minister, perfectly fits the bill.

Mani holds the records of having presented the maximum number of 13 Budgets in the Kerala Legislative Assembly as finance minister and also as the longest-serving member of Kerala Assembly.

Notably, this development comes right after Jaitley expressed the hope that the constitutional amendment Bill to roll out the GST would be passed in the next leg of the Budget session beginning on April 20, 2015. However, this wouldn’t be an easy task as GST requires to be passed by each House of Parliament by a two-third majority. Besides, consent of at least half of the states --15-- has to be obtained for the Bill. Post to which, GST Bills have to be passed by Parliament and respective state Assemblies.

The CNX Nifty is currently trading at 8443.30, down by 87.50 points or 1.03% after trading in a range of 8437.25 and 8499.45. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were BPCL up by 2.86%, BHEL up by 2.62%, Ultratech Cement up by 1.17%, Bharti Airtel up by 1.01% and Power Grid Corpn. up by 0.96%. On the flip side, HDFC down by 4.30%, Infosys down by 3.06%, Sesa Sterlite down by 2.54%, Coal India down by 2.49% and Hindustan Unilever down by 2.25% were the top losers.

Asian markets were trading mostly lower; Shanghai Composite trading higher by 9.65 points or 0.26% to 3,670.37 and Straits Times trading higher by 18.79 points or 0.55% to 3,437.81.On the flip side, Nikkei 225 edged lower by 275.08 points or 1.39% to 19,471.12; Taiwan Weighted edged lower by 48.71 points or 0.5% to 9,619.12; KOSPI Index edged lower by 20.25 points or 0.99% to 2,022.56; FTSE Bursa Malaysia KLCI edged lower by 1.8 points or 0.1% to 1,817.30; Jakarta Composite edged lower by 1.53 points or 0.03% to 5,403.96 and Hang Seng edged lower by 1.3 points or 0.01% to 24,526.93.