Benchmarks extend early losses led by metal and realty

Indian equity benchmarks extended early losses and reached at their intra-day low level in early noon session, due to sustained capital outflows amid a weak trend in global markets. Besides, absence of positive cues too had a negative impact. However, investors got some support with ratings agency Fitch, while maintaining a stable outlook for India, stated that the country’s economy will grow by 7.5 percent in the current fiscal that will stand out globally.   On the global front, Asian markets were trading in red, after global oil benchmarks hit the lowest levels in almost seven years in U.S. Back home, both sensex and Nifty were trading below the crucial 25,450 and 7,750 levels, respectively. The market breadth on BSE was negative, out of 2491 stocks traded, 1083 stocks advanced, while 1273stocks declined on the BSE. Traders were seen piling up position in IT, TECK, FMCG and Auto stocks, while selling was witnessed in Metal, Reality, PSU, Oil & Gas and Consumer Durables sector stocks.  

In scrip specific development, share of Tata Motors was trading higher after its luxury vehicle unit Jaguar Land Rover (JLR) posted a 27 per cent growth in November sales. JLR reported sales of 46,547 units in November, aided by strong growth in Europe and North America. Its Europe sales surged 68 per cent while in North America they grew 52 per cent. However, in China its sales declined 22 per cent in November. Eicher Motors was trading higher after the company resumed production of motorcycles in Thiruvottiyur and Oragadam on December 7. Due to heavy rains and floods in and around Chennai, both of Royal Enfield’s production facilities were shut since December 01, 2015.

The BSE Sensex is currently trading at 25418.12, down by 111.99 points or 0.44% after trading in a range of 25410.46 and 25542.47. 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 0.32%, while Small cap index was down by 0.20%.

The top gaining sectoral indices on the BSE were IT up by 0.63%, TECK up by 0.51%, FMCG up by 0.45% and Auto up by 0.39%, while Metal down by 2.20%, Realty down by 1.26%, PSU down by 1.22%, Oil & Gas down by 1.10% and Consumer Durables down by 0.68% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.58%, Infosys up by 0.87%, ITC up by 0.61%, Bajaj Auto up by 0.58% and TCS up by 0.50%. On the flip side, Vedanta down by 3.34%, Hindalco down by 3.09%, ONGC down by 2.97%, GAIL India down by 2.75% and Dr. Reddys Lab down by 2.67% were the top losers.

Meanwhile, petroleum Minister Dharmendra Pradhan has said that the petroleum products should come under the ambit of the proposed Goods and Services Tax (GST) but said that the final decision would be taken only after reaching consensus with the state governments.

Clarifying the statement, Petroleum Minister said that altogether 52 per cent tax is levied on petroleum products by both central and state governments and such revenues are used for various welfare and infrastructure projects. Out of 52 percent around 32 per cent tax is imposed by the Central government on petroleum products while around 20 per cent is levied by state governments.

State governments earn a major chunk of their revenue from taxes on petroleum products such as petrol and diesel which are also easy to collect as public sector oil companies pass on these levies direct to the states. States are, therefore, staunchly opposed to letting go of these goods.

Pradhan further added that the state governments are free to fix the amount of tax they want to levy on petroleum products as every state has its own aspirations and development projects which they carry out through the revenue generated from the sale of petroleum products. Besides, he said that ever since NDA government came into power in May 2014, prices of petrol and diesel were reduced 19 times and enhanced seven times.

The CNX Nifty is currently trading at 7739.60, down by 25.80 points or 0.33% after trading in a range of 7734.10 and 7771.25. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were HCL up by 2.18%, Tata Motors up by 1.75%, BPCL up by 1.28%, Infosys up by 0.96% and TCS up by 0.69%. On the flip side, Cairn India down by 3.75%, Vedanta down by 3.34%, Hindalco down by 3.09%, ONGC down by 2.97% and GAIL India down by 2.81% were the top losers.

Asian markets were trading in red; Hang Seng decreased 371.72 points or 1.67% to 21,831.50, Nikkei 225 decreased 173.83 points or 0.88% to 19,524.32, Taiwan Weighted decreased 102.82 points or 1.22% to 8,351.45, Shanghai Composite decreased 49.34 points or 1.4% to 3,487.58, Jakarta Composite decreased 32.13 points or 0.71% to 4,489.26, KOSPI Index decreased 10.77 points or 0.55% to 1,952.90 and FTSE Bursa Malaysia KLCI decreased 1.77 points or 0.11% to 1,670.23.