Benchmarks erase gains; Nifty slips below 8,100 mark

Indian equity markets erased their gains and started trading in red in the late afternoon session on account of selling in frontline blue chip counters. The sentiments were under pressure after Moody’s Analytics, the research and analysis arm of Moody’s Corporation projected RBI to keep rates on hold for the remainder of 2015, with a small chance of another cut early next year. Investors were also cautious on World Bank report which retained its India growth forecast for 2015-16 saying it will continue to grow, but the catch is the acceleration year-on-year will be gradual. Traders were seen piling position in Power, Bankex and Metal stocks, while selling was witnessed in FMCG, Auto and IT sector stocks. In the scrip specific development, Nestle India was trading in red after its net profit fell 60.1% to Rs 124.20 crore on 32.1% decline in net sales to Rs 1736.20 crore in Q3 September 2015 over Q3 September 2014.

On the global front, the Asian markets were trading mostly in red, while the European markets were trading on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 8,100 and 26,800 levels respectively. The market breadth on BSE was negative in the ratio of 1161:1274 while 191 scrips remained unchanged.

The BSE Sensex is currently trading at 26744.59, down by 93.55 points or 0.35% after trading in a range of 26718.41 and 26942.29. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in mixed ; the BSE Mid cap index was up by 0.25%, while Small cap index down by 0.30%.

The gaining sectoral indices on the BSE were Power up by 1.45%, Bankex up by 0.74%, Metal up by 0.58%, PSU up by 0.44% and Oil & Gas up by 0.29%, while FMCG down by 2.22%, Auto down by 0.91%, IT down by 0.45%, TECK down by 0.42% and Consumer Durables down by 0.40% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 5.16%, Hindalco up by 3.25%, Tata Steel up by 1.84%, Sun Pharma up by 1.42% and Dr. Reddy’s Lab up by 1.33%.

On the flip side, ITC down by 4.59%, Vedanta down by 3.46%, Mahindra & Mahindra down by 2.09%, GAIL India down by 1.47% and ONGC down by 1.35% were the top losers.

Meanwhile, addressing the 3rd India -Africa Forum Summit, Prime Minister Modi has announced a concessional credit of $10 billion to Africa over the next five years. Modi said that this move will be in order to add strength to the partnership and will be in addition to the ongoing credit programme. India has committed $7.4 billion in concessional credit and $1.2 billion in grant to Africa since the first India-Africa Summit in 2008.

He also added that India will offer a grant assistance of $600 million which includes an India-Africa Development Fund of $100 million and a Health Fund of $10 million. Besides, he also pledged an assistance of 50,000 scholarships for African students in India over the next five years. And will support the expansion of the Pan Africa E-Network and institutions of skilling, training and learning across Africa.

Modi specifically called for stronger ties between the two countries in the strategic areas of counter-terrorism and climate change saying that “Closer defence and security cooperation, will be a key pillar of India-Africa partnership” and that India will intensify its cooperation against terrorism and rally the world to build a common cause against it. Modi assured 41 Heads of State and Government and hundreds of senior officials from 54 African countries that India will extend all possible assistance to them including in areas of defence, security, trade and infrastructure development.

The CNX Nifty is currently trading at 8094.75, down by 17.00 points or 0.21% after trading in a range of 8092.40 and 8146.10. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were NTPC up by 5.12%, Hindalco up by 3.18%, Kotak Mahindra Bank up by 2.99%, Yes Bank up by 2.34% and Grasim Industries up by 2.04%.

On the flip side, ITC down by 4.59%, Vedanta down by 3.36%, Bosch down by 2.47%, Mahindra & Mahindra down by 1.97% and Bajaj Auto down by 1.41% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 179.9 points or 0.79% to 22,640.04, Taiwan Weighted decreased 16.77 points or 0.2% to 8,554.31, Jakarta Composite decreased 14.08 points or 0.31% to 4,457.95, Shanghai Composite decreased 4.75 points or 0.14% to 3,382.56 and KOSPI Index decreased 4.69 points or 0.23% to 2,029.47.

On the other hand, FTSE Bursa Malaysia KLCI increased 4.95 points or 0.3% to 1,671.93 and Nikkei 225 increased 147.39 points or 0.78% to 19,083.10.

The European markets were trading in green; UK’s FTSE 100 increased 0.64 points or 0.01% to 6,396.44, France’s CAC increased 15.13 points or 0.31% to 4,900.95 and Germany’s DAX increased 34.81 points or 0.32% to 10,835.65.