Benchmarks add losses; Nifty slips below 7900 mark

Indian bourses adding losses, continued to trade in red in the late morning session, with the Sensex losing over 100 points and Nifty falling below the 7900 level, on sustained selling by funds and retail investors. Sentiments came under pressure after India’s services industry barely expanded in November, growing at its weakest pace in five months, as firms grew increasingly gloomy about the coming year. The Nikkei/Markit Services Purchasing Managers’ Index (PMI) fell sharply to 50.1 in November from October’s eight-month high of 53.2. Besides, a weak trend in other Asian markets, tracking overnight sell-off in the US markets on plummeting oil prices also dampened the sentiment. Investors in emerging markets, including India are worried that once the Fed starts raising interest rates, it will drain liquidity from global emerging markets and redirect it to developed economies. However, losses remained capped as Cabinet 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.

On the global front, most of Asian markets slipped on Thursday, after US oil's slide below $40. Trading sentiments came under pressure after hawkish comments from Federal Reserve Chair Janet Yellen reinforced the case for an interest rate hike later this month. US stocks closed lower Wednesday, erasing all the of previous session's gains as a sharp selloff in energy and utilities dragged indexes lower. Back home, stocks from Realty, Capital Goods and Power counters were supporting the markets’ uptrend, while those from FMCG, Metal and Consumer Durables counters were adding to the underlying cautious undertone. In scrip specific development, shares of TV Today Networks gained after RBI has notified that Non Resident Indians (NRIs) can now invest up to 24 per cent of the paid up capital of TV Today Networks under the Portfolio Investment Scheme (PIS). On the other hand, shares of Apollo Tyres have declined after the company’s production operations at its Oragadam plant, Tamil Nadu have been disrupted due to flooding at the factory premises caused by heavy rains in Chennai.

The BSE Sensex is currently trading at 25963.19, down by 154.66 points or 0.59% after trading in a range of 25956.20 and 26123.86. 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 0.20%, while Small cap index down by 0.22%.

The top gaining sectoral indices on the BSE were Realty up by 0.17%, Capital Goods up by 0.16%, Power up by 0.14% and Oil & Gas up by 0.09%, while FMCG down by 0.99%, Metal down by 0.90%, Consumer Durables down by 0.85%, IT down by 0.51% and Auto down by 0.50% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 0.68%, Larsen & Toubro up by 0.51%, Bharti Airtel up by 0.51%, Reliance Industries up by 0.50% and GAIL India up by 0.46%. On the flip side, Tata Steel down by 2.18%, Cipla down by 1.73%, Lupin down by 1.61%, BHEL down by 1.56% and ONGC down by 1.40% were the top losers.

Meanwhile, foreign direct investment (FDI) in the insurance sector has more than doubled to $ 341.43 million during March-September this year. The sector had received FDI worth $ 135.30 million, during March-September 2014.

Commerce and Industry Minister Nirmala Sitharaman informing in the Upper house further said that FDI directly supplements the domestic capital and brings technology and skill in the sectors of direct entry. “It has indirect multiplier effects on other related sectors also thereby stimulating economic growth leading to increased production, exports and employment generation”.

Separately the minister said that foreign investments made by NRIs which also includes investments by Persons of Indian Origin and Overseas Citizens of India during July 2014 and June 2015 increased to Rs 796 crore as against Rs 732 crore in the same period last year.

The government had earlier in the year passed one of the most historic economic reforms bill in the Insurance sector, allowing foreign direct investors to infuse upto 49% in the Indian insurance companies.

The CNX Nifty is currently trading at 7884.55, down by 46.80 points or 0.59% after trading in a range of 7878.35 and 7912.30. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 1.13%, NTPC up by 0.71%, Yes Bank up by 0.58%, Bharti Airtel up by 0.56% and Larsen & Toubro up by 0.51%. On the flip side, Tata Steel down by 2.44%, Cipla down by 1.95%, BHEL down by 1.88%, Lupin down by 1.60% and Mahindra & Mahindra down by 1.59% were the top losers.

Asian markets were trading mostly in red, Hang Seng was down by 0.27%, Nikkei 225 down by 0.17%, KOSPI Index down by 0.83%, Jakarta Composite down by 0.15% and FTSE Bursa Malaysia KLCI was down by 0.16%. On the flip side, Taiwan Weighted was up by 0.1%, Shanghai Composite was up by 0.59%.