Markets make gap-down opening amid weak global cues

With a gap-down opening, Indian equity markets have extended their previous session losses and are now trading with a cut of about a quarter percent, tailing weakness in the global markets after Federal Reserve Chairperson Janet Yellen said that the US economy is growing sufficiently, thus, laying the groundwork for a December interest-rate hike. Selling witnessed in most of the key heavyweights dragged BSE’s -- Sensex -- and NSE’s -- Nifty -- to below their crucial 26,100 and 7,900 levels respectively. Further, Depreciation in Indian rupee against dollar too weighed down sentiments. The rupee weakened by 13 paise to 66.72 against the US dollar in early trade today at the Interbank Foreign Exchange due to fresh demand for the American currency from importers.

In the scrip specific development, Bhusan Steel surged over 13 per cent, as the company is reportedly in the process of getting Rs 3,000 crore from sale and lease-back arrangements for two of its assets, oxygen and coke oven plants, in Odisha.

On the global front, the US stocks ended lower led by drop in energy shares. Asian markets were trading mostly in red, after crude oil prices fell below the $40 a barrel mark overnight and as comments from the U.S. Federal Reserve Chair Janet Yellen suggested that the central bank remains on track to raise interest rates later this month.

Back home, all the sectoral indices, barring IT, were trading in red, led by Metal, FMCG, Consumer Durables and Bankex. The market breadth on BSE was positive in the ratio of 965: 861while 67scrips remained unchanged.

The BSE Sensex is currently trading at 26026.05, down by 91.80 points or 0.35% after trading in a range of 26014.69 and 26123.86. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.14%, while Small cap index lost 0.05%.

The gaining sectoral indices on the BSE was IT up by 0.01%, while Metal down by 0.93%, FMCG down by 0.48%, Consumer Durables down by 0.41%, Bankex down by 0.33% and PSU down by 0.26% were the losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 0.91%, Wipro up by 0.55%, Coal India up by 0.47%, Reliance Industries up by 0.44% and Maruti Suzuki up by 0.44%. On the flip side, Vedanta down by 2.49%, Tata Steel down by 2.46%, Hindalco down by 2.12%, BHEL down by 1.39% and Lupin down by 1.34% were the top losers.

Meanwhile, the Union cabinet going a step further in government’s push to policy reforms, has given ex-post-facto approval to the easing of foreign direct investment (FDI) policy in 15 sectors that was approved by the Prime Minister Narendra Modi last month.

The Cabinet at its meeting approved all the relaxations in FDI policy for 15 sectors, which include; increasing foreign-investor limits in several sectors including private banks, defence and non-news entertainment media; and allowing property developers to sell completed projects to foreign investors without lock-in periodsThe government had freed the restrictions in the construction sector by allowing overseas investors to exit and repatriate investment even before project completion, foreign direct investment (FDI) up to 49 percent stake in defence firms and regional airlines has been allowed without government nod.

The government had also raised financial power of the Foreign Investment Promotion Board (FIPB) to give single window clearance for investment projects of up to Rs 5,000 crore from Rs 3,000 crore.

The CNX Nifty is currently trading at 7899.40, down by 31.95 points or 0.40% after trading in a range of 7894.45 and 7912.30. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 0.93%, Ultratech Cement up by 0.75%, NTPC up by 0.49%, Wipro up by 0.47% and Coal India up by 0.46%. On the flip side, Tata Steel down by 2.60%, Vedanta down by 2.28%, Hindalco down by 2.24%, BHEL down by 1.53% and Cairn India down by 1.45% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 82.59 points or 0.37% to 22,397.10, Nikkei 225 decreased 57.42 points or 0.29% to 19,880.71, KOSPI Index decreased 20.68 points or 1.03% to 1,988.61, Jakarta Composite decreased 7.07 points or 0.16% to 4,538.79 and FTSE Bursa Malaysia KLCI decreased 2.17 points or 0.13% to 1,674.60.

On the flip side, Taiwan Weighted increased 4.16 points or 0.05% to 8,461.56, Shanghai Composite increased 20.8 points or 0.59% to 3,557.71.