Benchmarks trade lower amid weak global cues in early deals

With a gap-down opening Indian equity markets have extended their previous session losses and are now trading with cut of over half a percent, on sustained selling in frontline line blue-chip stocks, which dragged both the Sensex and Nifty below their psychological 26,000 and 7,900 levels respectively. Further, weakness in the global markets too weighed on the sentiments. Besides, foreign portfolio investors (FPIs) sold shares worth a net Rs 861.06 crore on November 9, 2015, as per provisional data released by the stock exchanges that too added negative milieu. Moreover, investors failed to get any sense of relief with the statement of Fitch Ratings that BJP's defeat in the Bihar assembly elections is unlikely to have any major implications on the economic front. The rating agency said the defeat does not change its view on the medium-term economic outlook for India.

On the global front, the US markets ended lower with more than 1 percent on Monday, their biggest decline in six weeks, as investors braced for an interest-rate hike and fretted about weak Chinese trade data. Asian markets were trading mostly in red following the weak lead overnight from Wall Street and European markets amid increased chances of an interest rate hike by the U.S. Federal Reserve this year and on worries about slower global economic growth. The weakness in commodity prices also weighed on the markets. 

Back home traders were seen piling up position in Consumer Durables, Auto, Bankex and Capital Goods, while selling was witnessed in Metal, IT, TECK, Oil & Gas and Power. The market breadth on BSE was positive in the ratio of 917: 628 while 55scrips remained unchanged

The BSE Sensex is currently trading at 25971.59, down by 149.81 points or 0.57% after trading in a range of 25945.30 and 26094.09. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.25%, while Small cap index gained 0.43%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.07%, Auto up by 0.23%, Bankex up by 0.16% and Capital Goods up by 0.15%, while Metal down by 1.03%, IT down by 0.76%, TECK down by 0.71%, Oil & Gas down by 0.70% and Power down by 0.48% were the losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.09%, Bajaj Auto up by 1.02%, Tata Motors up by 0.90%, ICICI Bank up by 0.76% and Hero MotoCorp up by 0.75%. On the flip side, ONGC down by 2.63%, Hindalco down by 2.13%, BHEL down by 1.90%, Dr. Reddys Lab down by 1.73% and GAIL India down by 1.37% were the top losers.

Meanwhile, in a morale booster to the government, Paris-based think tank the Organisation for Economic Cooperation and Development (OECD), despite cutting the global growth forecast for this year to 2.9 percent citing a further sharp downturn in emerging market economies and world trade, has said that with ‘relatively robust’ growth prospects, the Indian economy is expected to expand by 7.2 percent this fiscal but difficulty in passing key structural reforms and large non-performing loans are holding it back.

The latest growth estimate for India is same as the forecast made in September by the think tank. In the current financial year, India is estimated to grow 7.2 percent, followed by 7.3 percent in 2016-17 and 7.4 percent in 2017-18 period, as per OECD. It has further said that India public investment has picked up with faster clearance of key projects while better infrastructure and greater ease of doing business are promoting private investments. More generous benefits and wages for public employees are supporting private consumption.

It further said that fiscal policy is assumed to remain supportive in India. Public investment in the energy, transport, sanitation, housing and social protection sectors is critical to raising living standards for all and can be financed through tax reform and reductions in subsidies.

OECD has said that a 'deeply concerning' slowdown in trade, particularly with China, will lead to lower global economic growth this year. Global GDP is now expected to grow by 2.9%, down from 3% forecast in September, but will hit 3.3% in 2016. The OECD has repeatedly cut its 2015 global growth outlook from the 3.7% it initially forecast last November. But in its bi-annual outlook, the organisation said stimulus measures in China and other countries would help the world economy speed up next year, before accelerating to 3.6% in 2017. China's growth is expected to slow to 6.8 percent this year and continue to decline gradually reaching 6.2 percent by 2017 as activity rebalances towards consumption and services.

The think tank has also called for the US Federal Reserve to go ahead with its first rate hike since the financial crisis as a recovery gains steam in the United States and Europe , despite a slowdown mostly centred on emerging markets and China.

The CNX Nifty is currently trading at 7869.55, down by 45.65 points or 0.58% after trading in a range of 7855.45 and 7885.10. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were PNB up by 1.40%, Tata Motors up by 1.03%, Axis Bank up by 1.01%, Hero MotoCorp up by 0.95% and Bank Of Baroda up by 0.93%. On the flip side, ONGC down by 2.77%, Hindalco down by 2.31%, Dr. Reddys Lab down by 1.77%, GAIL India down by 1.50% and NTPC down by 1.50% were the top losers.

Asian markets were trading in mostly red, Hang Seng decreased 239.74 points or 1.05% to 22,487.03, Taiwan Weighted decreased 74.53 points or 0.86% to 8,567.95, Nikkei 225 decreased 62.62 points or 0.32% to 19,580.12, KOSPI Index decreased 30.53 points or 1.51% to 1,995.17 and Jakarta Composite decreased 2.64 points or 0.06% to 4,496.87.

On the flip side, Shanghai Composite increased 15.48 points or 0.42% to 3,662.36.