Benchmarks continue weak trade in late afternoon session

Indian equity markets extended losses in the late afternoon session on account of selling in frontline blue chip counters. The sentiments were under pressure on reports that market regulator Securities and Exchange Board of India (SEBI) may review the participatory notes (P-Notes) norms. This pessimism was despite Finance Minister Arun Jaitley informing that the government will study the suggestions before taking a stand. The sharp fall in the Asian markets also contributed to the weak markets sentiments. China stock markets plunged over 8%, marking their biggest one-day drop in more than eight years. Traders were seen selling in Capital Goods, Metal and Bankex sector stocks. In scrip specific development, Rajesh Exports was trading in green on buying world’s largest gold refining firm Valcambi for $400 million in all cash deal. Andhra Bank was trading in green after the bank reported strong earnings growth for the first quarter of the current fiscal.

On the global front, the Asian markets were trading in red, while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,450 and 27,800 levels respectively. The market breadth on BSE was negative in the ratio of 1049:1589 while 106 scrips remained unchanged.

The BSE Sensex is currently trading at 27710.36, down by 401.95 points or 1.43% after trading in a range of 27655.74 and 28117.65. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.78%, while Small cap index down by 0.81%.

The losing sectoral indices on the BSE were Capital Goods down by 2.31%, Metal down by 2.18%, Bankex down by 1.80%, INFRA down by 1.74% and Realty down by 1.40%.

The top gainers on the Sensex were Bajaj Auto up by 0.78%, Cipla up by 0.32% and NTPC up by 0.15%.

On the flip side, Tata Steel down by 4.41%, Bharti Airtel down by 3.65%, Hindalco down by 3.53%, Axis Bank down by 3.53% and Tata Motors down by 3.36% were the top losers.

Meanwhile, India’s per capita debt burden stood at Rs 44,095 an increase by Rs 2,966 in 2014-15, which include external and internal debt and other liabilities. The increase in per capita debt was mostly an outcome of higher developmental expenditure to achieve a better growth rate. According to International Debt Statistics 2015 of the World Bank, India ranks fourth on external debt on the list of 20 developing countries. The debt for 2013-14 was at Rs 41,129.

The domestic debt service payment in the government account stood at Rs 4.04 lakh crore, Rs 4.85 lakh crore and Rs 5.56 lakh crore in 2012-13, 2013-14 and 2014-15 respectively, whereas external debt service payment came in at $3.72 million, $3.66 million and $3.89 million in 2012-13, 2013-14 and 2014-15 respectively. The total outstanding liability as of March 31, 2015, read Rs 68.95 lakh crore.

While companies as well as governments avail of external loans, internal debt is mainly on account of government borrowings, either from the market or even from individuals in the form of small savings schemes. A high debt level also comes with a high interest burden, economists have been have asking the government for long to cut down on interest outgo and subsidies so that more resources are available for physical and social infrastructure.

The CNX Nifty is currently trading at 8404.10, down by 117.45 points or 1.38% after trading in a range of 8387.75 and 8492.20. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 1.60%, Asian Paints up by 0.91%, Bajaj Auto up by 0.79%, Zee Entertainment up by 0.58% and Bosch up by 0.49%.

On the flip side, Tata Steel down by 4.36%, Hindalco down by 4.02%, Hero MotoCorp down by 3.64%, Bharti Airtel down by 3.64% and Axis Bank down by 3.53% were the top losers.

The Asian markets were trading in red; Hang Seng decreased 776.55 points or 3.09% to 24,351.96, Shanghai Composite decreased 345.35 points or 8.48% to 3,725.56, Taiwan Weighted decreased 211.18 points or 2.41% to 8,556.68, Nikkei 225 decreased 194.43 points or 0.95% to 20,350.10, Jakarta Composite decreased 71.67 points or 1.48% to 4,784.93, Straits Times decreased 37.24 points or 1.11% to 3,315.41, KOSPI Index decreased 7.15 points or 0.35% to 2,038.81 and FTSE Bursa Malaysia KLCI decreased 6.53 points or 0.38% to 1,714.23.

The European markets were trading in red; Germany’s DAX decreased 129.58 points or 1.14% to 11,217.87, France’s CAC decreased 64.81 points or 1.28% to 4,992.55 and UK’s FTSE 100 decreased 19.26 points or 0.29% to 6,560.55.