Benchmarks extend weak trade; Power, FMCG drag

Indian equity markets extended their weak trade 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 under pressure following rupee depreciation against the US dollar, on strong demand for the US currency from importers, after the US Federal Reserve indicated it may hike interest rates in December. Traders were seen piling position in Consumer Durables, Realty and Auto stocks, while selling was witnessed in Power, FMCG and PSU sector stocks. In the scrip specific development, Torrent Power was trading in green after the firm reported consolidated net profit of Rs 246.27 crore for the quarter ended September 30. The market may remain volatile today as traders may roll over positions in the Futures & Options (F&O) segment from the near month i.e. October 2015 series to next month i.e. November 2015 series. The near month October 2015 derivatives contracts will expire today i.e. October 29, 2015.

On the global front, the Asian markets were trading mostly in red, while the European markets were trading mostly on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,150 and 26,900 levels respectively. The market breadth on BSE was negative in the ratio of 1176:1289 while 198 scrips remained unchanged.

The BSE Sensex is currently trading at 26856.91, down by 182.85 points or 0.68% after trading in a range of 26839.18 and 27099.11. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.15%, while Small cap index down by 0.10%.

The gaining sectoral indices on the BSE were Consumer Durables up by 0.83%, Realty up by 0.29% and Auto up by 0.18%, while Power down by 1.30%, FMCG down by 1.16%, PSU down by 1.07%, Oil & Gas down by 0.92% and TECK down by 0.81% were the losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 2.03%, Tata Motors up by 1.58%, Lupin up by 1.13%, Vedanta up by 0.81% and Bajaj Auto up by 0.80%.

On the flip side, BHEL down by 4.14%, GAIL India down by 3.02%, Sun Pharma down by 2.31%, Axis Bank down by 2.31% and Bharti Airtel down by 2.16% were the top losers.

Meanwhile, Commerce Minister Nirmala Sitharaman has said that India is looking at the feasibility for providing easy and cost effective credit facilities, in order to built capacities in the developing nations, particularly in Africa. On the other side, she has asked the African countries to leverage 'Duty Free Tariff Preferences' (DFTP) offered by India.

Under DFTP scheme India provides duty free market access on over 95 per cent of tariff lines to least developed countries. Sitharaman has said that businesses in India and Africa could leverage the benefits offered by the DFTP while exploring each other's markets. Moreover, She added that not many countries have offered such overarching reduction in tariffs for least developed countries (LDCs), including those in Africa. 

Sitharaman has advised the financial institutions and think tank in Africa and India to popularize the advantages of the scheme. She pointed out that India has been encouraging services cooperation with African nations. she further said that 'Africa has the potential for development of Tourism, Healthcare, Hospitality and ICT sectors. The Government of India supported Pan-Africa E-Network has contributed significantly to the Africa's skill development and healthcare delivery'.

The CNX Nifty is currently trading at 8117.40, down by 53.80 points or 0.66% after trading in a range of 8111.20 and 8179.60. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Yes Bank up by 2.35%, Dr. Reddy’s Lab up by 1.86%, Tata Motors up by 1.50%, Lupin up by 1.15% and Cairn India up by 0.88%.

On the flip side, BHEL down by 4.10%, Power Grid down by 3.32%, BPCL down by 3.18%, GAIL India down by 2.93% and Sun Pharma down by 2.50% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 136.63 points or 0.6% to 22,819.94, Jakarta Composite decreased 120.9 points or 2.62% to 4,487.84, Taiwan Weighted decreased 94.91 points or 1.1% to 8,571.08, FTSE Bursa Malaysia KLCI decreased 14.89 points or 0.88% to 1,671.62 and KOSPI Index decreased 8.35 points or 0.41% to 2,034.16.

On the other hand, Shanghai Composite increased 12.12 points or 0.36% to 3,387.32 and Nikkei 225 increased 32.69 points or 0.17% to 18,935.71.

The European markets were trading mostly in red; UK’s FTSE 100 decreased 54.93 points or 0.85% to 6,382.87, France’s CAC decreased 7.49 points or 0.15% to 4,883.09 while Germany’s DAX increased 10.5 points or 0.1% to 10,842.46.