Benchmarks extend losing streak for third straight session

Extending southward journey for third straight session, Indian equity benchmarks ended the choppy day of trade slightly in red. Sentiments remained dampened after IT bellwether Tata Consultancy Services’ (TCS) second-quarter revenue missed street expectation, raising concerns that the company may not be able to continue its trend in coming quarters too. For the quarter ended September 30, TCS' revenue grew 3% sequentially, or 5.8% year-over-year. Meanwhile, the WPI inflation data released during the day indicated a mild uptick of 0.51 per cent in the September WPI inflations, which stood at -4.54 per cent against -4.95 per cent in August. The wholesale fuel prices fell 17.71% from a year ago. Prices of manufactured goods declined 1.73% on year in September. Food prices, however, inched up 0.69% year-on-year last month.

However, losses remained capped with Finance Ministry stating that reform measures would continue in order to boost economic activity. Also, Minister of State for Finance Jayant Sinha, allaying concerns of investors over pace of reforms in India has said the government has implemented “game- changing” measures to transform India's economic fortunes and improve the business environment in the country.

Global cues too remained sluggish with European counters making sluggish start as new concerns about deflationary pressures in China impacted equity markets, while technology group ASML and builder Skanska slid after weak business updates. Asian markets ended in red taking cues from Wall Street's losses and pressured by a continued selloff in oil as investors awaited consumer price data from China this session.

Back home, it turned out to be a choppy day of trade where benchmarks made several attempts to break in green and managed to enter into green terrain couple of time but simultaneous profit taking dragged them back in red. Selling in software and technology counters too weighed down sentiments, led by 4.5% fall in TCS post weak Q2 numbers. FMCG counters too remained under pressure after HUL declined around 2% after reporting 2.62% fall in its net profit at Rs 962.24 crore for the quarter ended September 30, 2015 as compared to Rs 988.16 crore for the same quarter in the previous year. The metal pack too ended in red on Chinese concern, after Consumer inflation in China cooled more than expected.  On the flip side, shipping stocks surged on report that state-owned firms may have to give half their freight business to local shippers to help rescue an industry battered by the global commodities downturn. Steel stocks too remained on buyers’ radar, as the World Steel Association (WSA) has said that world's third largest steel producer, is expected to grow to 81.5 million tonnes (MT) and 87.6 MT in 2015 and 2016, respectively, from 75.9 MT in 2014.

The NSE’s 50-share broadly followed index Nifty ended lower by over twenty but managed to hold its psychological 8,100 support level, while Bombay Stock Exchange’s Sensitive Index -- Sensex edged lower by over sixty points to end below the psychological 26,800 mark. The broader markets too struggled during the trade and ended the session mixed. The market breadth remained in favour of advances, as there were 1,501 shares on the gaining side against 1,265 shares on the losing side while 137 shares remain unchanged.

Finally, the BSE Sensex lost 66.87 points or 0.25% to 26779.66, while the CNX Nifty declined by 23.80 points or 0.29% to 8107.90.

The BSE Sensex touched a high and a low 26869.08 and 26713.28, respectively. The BSE Mid cap index was down by 0.34%, while Small cap index was up by 0.35%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.41%, Healthcare up by 0.36% and Oil & Gas up by 0.07%, while IT down by 1.32%, TECK down by 1.16%, Auto down by 0.72%, Power down by 0.70% and PSU down by 0.49% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 3.14%, Lupin up by 1.91%, Tata Steel up by 1.14%, HDFC up by 1.08% and Reliance Industries up by 1.06%. On the flip side, TCS down by 4.39%, Tata Motors down by 2.40%, Hindustan Unilever down by 1.85%, Coal India down by 1.72% and ICICI Bank down by 1.58% were the top losers.

Meanwhile, in order to transform India's economic fortunes and improve the business environment in the country, Minister of State for Finance Jayant Sinha has said that the government has implemented 'game- changing' measures, reducing the concerns of investors over pace of reforms in India. Listing the initiatives by the government such as universal social security, 'Make in India' and agriculture credit, Sinha said that these measures are the game changing and are going to transform India's economic fortunes.

Sinha further highlighted that in order to ensure universal social security, the government has initiated the 'Jan Dhan Yojna' which over a period of time will include other benefits like health insurance. Talking about agriculture initiatives like the irrigation soil health card, agricultural credit and crop insurance he said these are being put in place to make India's agriculture more productive. Besides, he said the Make in India, Skills India and Mudra schemes to highlight efforts by the government to improve manufacturing and give a boost to small entrepreneurs across the country.

Additionally, he said that the key objective of the government is to build India's productive capacity to ensure the country sustains an 8-10 per cent economic growth over the long term and lift millions out of poverty.  Furthermore, He added that “our overriding objective is to build India's productive capacity both as far as the hard assets and the soft assets are concerned”. Talking about hard assets he said that government has aligned huge infrastructure investments to develop the country's roads, factories, highways and bridge. On the other hand, the government is also paying attention to soft assets including improving employability and skills of the workforce, educational institutions and building an innovation eco-system that will propel entrepreneurship and start-ups. Though, Sinha stated there was expectation that 'big-bang' reforms would be put in place to fundamentally transform the economic landscape and there is disappointment in some quarters over the speed of such reforms.

The CNX Nifty touched a high and low 8139.30 and 8096.35 respectively.

The top gainers on Nifty were Hindalco up by 2.84%, ACC up by 1.73%, Lupin up by 1.71%, HDFC up by 1.19% and Reliance up by 1.19%. On the flip side, TCS down by 4.53%, Cairn India down by 3.52%, Zee Entertainment down by 3.51%, Hindustan unilever down by 2.79% and Tech Mahindra down by 2.56% were the top losers.

European Markets were trading in the red; France’s CAC was down by 0.525%, Germany’s DAX was down by 0.83% and UK's FTSE was down by 0.71%. 

The Asian equity markets ended in red on Wednesday, after disappointing economic data from China stoked worries about whether the world’s second largest economy can meet its year-end growth target. Malaysia and Indonesia stock exchange were closed on account of national holiday. Indonesia’s central bank is expected to keep its benchmark policy rate unchanged at 7.50 percent on Thursday even though the rupiah recently strengthened and the inflation rate has declined. Bank Indonesia (BI) has held its key rate since making a 25 basis-point cut in February, despite the worst economic slowdown since 2009. The Indonesian government is set to announce yet another policy package to boost the economy, this time particularly aimed at solving employment problems.

Singaporean GDP fell to a seasonally adjusted 1.4%, from 1.8% in the preceding quarter. South Korean Unemployment Rate fell to a seasonally adjusted annual rate of 3.5%, from 3.6% in the preceding month. China’s auto market grew moderately in September as it reversed a three-month sales drop on annual basis - a positive sign that it could regain momentum in the fourth quarter following a cut in vehicle purchase tax effective from October 1. Deliveries of passenger cars and commercial vehicles rose 2.1 percent from a year earlier to 2.03 million units last month, the first time sales were above 2 million since March. Chinese PPI remained unchanged at an annual rate of -5.9% compared to the preceding month while Chinese CPI fell to an annual rate of 1.6%, from 2.0% in the preceding month.