Bloodbath continues on the street in late afternoon session

Indian equity markets continued their weak trade in the late afternoon session on account of selling in front line blue chip counters amid a crash in China stocks which has shaken the global markets. Trading in China markets was suspended today much ahead of scheduled close after Shanghai shares tanked more than 7% following a sharp fall in its currency yuan. This is the second time this week trading was suspended in China for the day. The sentiments also took a hit with the World Bank lowering its global economic growth forecast for 2016 to 2.9% against its June forecast of 3.3% growth because of sluggish performance from major emerging market economies. However, the report highlighted that India will continue to be the bright spot of the global economy and is projected to grow at a robust 7.8% in fiscal 2016-17, more than a percentage point higher than China’s. The World Bank marginally reduced India’s growth rate - 0.2% in 2015 and 0.1% in both 2016 and 2017. Traders were seen selling in Realty, Auto and Capital Goods sector stocks.

On the global front, the Asian markets were trading in red while the European markets were trading on pessimistic note. Back home, the NSE Nifty and BSE Sensex were trading below the psychological 7,650 and 25,000 levels respectively. The market breadth on BSE was negative in the ratio of 627:2142 while 89 scrips remained unchanged.

The BSE Sensex is currently trading at 24967.82, down by 438.51 points or 1.73% after trading in a range of 24896.44 and 25230.35. There were 1 stocks advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.95%, while Small cap index down by 2.39%.

The losing sectoral indices on the BSE were Realty down by 3.73%, Auto down by 3.00%, Capital Goods down by 2.80%, Metal down by 2.74%, PSU down by 2.56%.

The only gainer on the Sensex was GAIL India up by 0.07%.

On the flip side, Tata Steel down by 5.46%, BHEL down by 5.20%, ONGC down by 5.08%, Tata Motors down by 5.07% and Maruti Suzuki down by 3.96% were the top losers.

Meanwhile, in order to come up with ideas to drive economic growth ahead of the budget and beyond it, Prime Minister Narendra Modi has set up eight groups of secretaries. The eight groups are: accelerated growth; good governance; employment generation; farmer-centric initiatives; education and health; innovative budgeting and effective implementation; Swachh Bharat and Ganga rejuvenation with people's participation; and energy efficiency and conservation. Many of the ideas from these eight groups are likely to find their way into the Budget, which is being seen as a make-or-break one by a government under pressure to lift growth to a higher trajectory.

Modi on December 31 had briefed secretaries to focus on quick delivery of Centre’s programmes. Further he will hold intensive half-day meetings with the eight secretaries' groups on January 12, 15 and 16. The meetings are aimed at finalising the Practical Action Plan (PAP) for these eight priority areas.

Besides, each group is being assisted by two separate teams of joint secretaries, making for 16 such squads in all. The groups are working on plans for all eight areas for one year, three years and the long term and the task is put on high priority. Top bureaucrats Hasmukh Adhia, Ashok Lavasa, Jugal Kishore Mahapatra, Anil Swarup, Amitabh Kant and Rajiv Kumar are among those who have been asked to 'pilot' the group presentations that will be put together on January 16 as the final plan. The good governance group is working on a mandate of process reengineering, which includes discussion of measures to reduce tribunals, laws and needlessly time-consuming processes. The group on education is looking at using technology to track attendance of teachers in schools and measures that will help Indian colleges feature in the global top 100.

Modi has also given suggestions to every subgroup including a new crop insurance scheme, leveraging traditional health systems, energy audits of companies and a list of 100 towns that can be made model clean towns by October 2016. Further, he has also asked for greater embedding of technology in government functions, which include digitisation, Aadhaar, space applications and skill development. The PM has asked for a comprehensive road map for power, coal, road and road infrastructure for the next three years besides plans for agricultural reform in the eastern states.

The CNX Nifty is currently trading at 7600.15, down by 140.85 points or 1.82% after trading in a range of 7580.80 and 7674.95. There were 50 stocks declining while there were no advances on the index.

The top losers on Nifty were Cairn India down by 7.79%, Vedanta down by 6.02%, Tata Steel down by 5.67%, BHEL down by 5.49% and ONGC down by 5.11%.

The Asian markets were trading in red; Hang Seng decreased 647.47 points or 3.09% to 20,333.34, Nikkei 225 decreased 423.98 points or 2.33% to 17,767.34, Taiwan Weighted decreased 138.33 points or 1.73% to 7,852.06, Jakarta Composite decreased 64.15 points or 1.39% to 4,544.84, KOSPI Index decreased 21.1 points or 1.1% to 1,904.33 and FTSE Bursa Malaysia KLCI decreased 8.69 points or 0.52% to 1,659.28.

The European markets were trading in red; UK’s FTSE 100 decreased 116.8 points or 1.92% to 5,956.58, Germany’s DAX decreased 300.21 points or 2.94% to 9,913.81 and France’s CAC decreased 104.18 points or 2.33% to 4,376.29.