Benchmarks extend losses; Nifty slips below 8300 mark

Indian equity markets extended their losses and hovering near the lowest point of the day in the late afternoon session on account of selling in frontline blue chip counters. The sentiments were on pessimistic note after Reserve Bank of India (RBI) took a cautious stance on the economic recovery even as it cut the policy rates by 25 basis points. Investors also maintained cautious approach on reports that the monsoon, which accounts for nearly 70% of India’s rainfall, has been delayed yet again. Traders were seen selling in Bankex, Realty and FMCG sectors stocks. In scrip specific development, Nestle India was trading in green after company claimed that it got samples of the noodles tested in an external laboratory as well as in-house and the product has been found safe to eat with lead levels within the permissible levels for consumption.

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 8,300 and 27,400 levels respectively. The market breadth on BSE was negative in the ratio of 742:1749 while 103 scrips remained unchanged.

The BSE Sensex is currently trading at 27361.79, down by 487.20 points or 1.75% after trading in a range of 27355.08 and 27902.53. There were 1 stocks advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.45%, while Small cap index down by 1.42%.

The losing sectoral indices on the BSE were Bankex down by 2.62%, Realty down by 2.28%, FMCG down by 2.12%, Auto down by 1.58%, PSU down by 1.40%.

The top gainers on the Sensex were Reliance Industries up by 0.63%. On the flip side, HDFC down by 3.34%, ITC down by 3.18%, SBI down by 3.16%, Hero MotoCorp down by 3.06% and Axis Bank down by 2.92% were the top losers.

Meanwhile, government in order to boost defence manufacturing and encourage foreign players in the sector has further simplified the defence rules and has withdrawn the excise and Customs duty exemptions enjoyed by the Ordinance Factory Board and defence PSUs. This move will provide a level-playing field by taking away the strategic advantage with PSUs for quoting lower rates in open bids. With this initiative, the government has also fulfilled demand of foreign Original Equipment Manufacturers (OEMs) such as Boeing, Airbus, Lockheed Martin, BAE Systems etc which are actively exploring the scope of future investments in India.

A statement from Ministry of Commerce and Industry said that the move will also send a definitive message to foreign OEMs that India is open to business for defence manufacturing. Almost 60 per cent items required for industrial licence have now been de-reserved. The Indian aerospace and defence market is among the most attractive globally as the country is the highest importer of defence items in the world.

Defence manufacturing is one of the key sectors among the 25 sectors identified under the Make-in-India campaign. The ministry statement added that a series of consultations have been held across ministries and departments to enable simplification of rules and procedures to promote private participation in defence manufacturing and exports. The government has already opened up the sector for private investment by increasing FDI cap in defence of up to 49 per cent and rationalising certain conditions.

The CNX Nifty is currently trading at 8283.45, down by 149.95 points or 1.78% after trading in a range of 8281.60 and 8445.35. There were 4 stocks advancing against 46 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 2.76%, Lupin up by 1.41%, Reliance Industries up by 0.51% and Cairn India up by 0.01%.

On the flip side, Bank of Baroda down by 3.78%, HDFC down by 3.51%, ITC down by 3.27%, SBI down by 3.25% and IndusInd Bank down by 3.24% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 130.44 points or 0.47% to 27,466.72, Straits Times decreased 44.76 points or 1.32% to 3,347.35, Nikkei 225 decreased 26.68 points or 0.13% to 20,543.19, KOSPI Index decreased 23.73 points or 1.13% to 2,078.64 and Taiwan Weighted decreased 11.43 points or 0.12% to 9,614.26.

On the other hand, FTSE Bursa Malaysia KLCI increased 1.21 points or 0.07% to 1,744.62 and Shanghai Composite increased 81.79 points or 1.69% to 4,910.53.

Indonesia’s Stock Exchange was closed today on account of ‘Vesak Day’ holiday.

The European markets were trading in red; Germany’s DAX decreased 88.11 points or 0.77% to 11,347.94, France’s CAC decreased 31.18 points or 0.62% to 4,994.12 and UK’s FTSE 100 decreased 52.78 points or 0.76% to 6,900.80.