Benchmarks continue to trade in red led by Metal and PSU

Indian equity benchmarks have recovered from day's low and are now continued to trade in red, on the back of selling by funds and retail investors in blue – chip counter, in early noon session. Besides, the sentiments were under pressure dampened following other Asian markets amid unabated China fears which led to massive losses on global markets last week, overshadowing a strong US jobs report.  Sentiments remained dented with a private report stating that consumer sentiments in India fell for the fourth consecutive month in December to the lowest on record, as consumers reported a further deterioration in their personal finances amid rising inflation. Furthermore, the depreciating rupee against the dollar also negatively impacted sentiment in the domestic market.  At present, both the sensex and Nifty were trading down below their crucial 24,800 and 7,550 levels, respectively.

On the global front, Asian markets were trading in red, as doubts mounted about Beijing's ability to manage the world's second-biggest economy. Back home, the broader markets were underperforming the larger peers with BSE Mid-cap and Small-cap indices trading up by 0.74% and 0.41%, respectively. In scrip specific development, share of Vakrangee was trading higher after the company has entered into strategic partnership with Mahindra eMarket, a subsidiary of Mahindra and Mahindra (M&M), for promoting and booking automobile products through Vakrangee Kendras. On the flip side, Sun TV Networks was trading in red after the former telecom minister Dayanidhi Maran, his brother and Sun Group chief Kalanithi Maran and four others were chargesheeted by the Enforcement Directorate in the Special 2G court in connection with a money laundering case lodged in the Aircel-Maxis deal.  

The BSE Sensex is currently trading at 24771.77, down by 162.56 points or 0.65% after trading in a range of 24598.90 and 24820.71. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.84%, while Small cap index down by 0.55%.

The top gaining sectoral indices on the BSE was Auto up by 0.13%, while Metal down by 1.41%, PSU down by 1.12%, Bankex down by 1.11%, Capital Goods down by 1.09% and TECK down by 1.06% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.11%, Reliance Industries up by 2.09%, NTPC up by 1.33%, Maruti Suzuki up by 0.93% and Axis Bank up by 0.69%. On the flip side, BHEL down by 2.77%, Cipla down by 2.34%, Adani Ports &Special down by 2.30%, Dr. Reddys Lab down by 2.19% and Tata Steel down by 2.09% were the top losers.

Meanwhile, in order to increase investment and growth, Finance Minister Arun Jaitley has said that the government will continue the reforms, with 'single-minded focus', which it failed to pursue in the recent months. He further said that “India cannot afford a change in direction and in these circumstances every state has to contribute”. With a view to attract investors, Jaitley also called upon states to improve ease of doing business stating they are 'smart people' and look for 'stability of policy (and) business friendly ecosystem.'

Among major reforms, the government has not been able to push the Goods and Services Tax ( GST) bill, which got stuck in Rajya Sabha because of stiff opposition from the Congress. While talking about the need to accelerate reforms at all levels in order to push growth, Jaitley said that world was going through an extremely difficult and challenging time and difficulties have spilled over into Indian system also.

Talking about the World Bank lowering global growth forecast to 2.9 per cent, Jaitley said that growth rates of economies across the world are hovering around extremely low figures and because of the integrated economy, what happens in China, what happens in oil prices, impact India’s markets. He also said that the country’s revenue gets impacted when the price regimes are low because nominal GDP gets reduced.

However, Jaitley took comfort from the fact that even under the trying circumstances, 'India continues to remain the fastest growing economy in the world. So India’s 7-7.5 per cent growth rate stands out amongst the larger economies as bright spot among global economy.'The CNX Nifty is currently trading at 7542.25, down by 59.10 points or 0.78% after trading in a range of 7494.35 and 7556.00. There were 7 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.12%, Reliance Industries up by 1.95%, NTPC up by 1.50%, Vedanta up by 1.11% and Maruti Suzuki up by 0.94%. On the flip side, BHEL down by 2.64%, Idea Cellular down by 2.52%, Tata Power down by 2.47%, Mahindra & Mahindra down by 2.33% and Cipla down by 2.31% were the top losers.

Asian markets were trading in red; Hang Seng decreased 450.2 points or 2.2% to 20,003.51, Taiwan Weighted decreased 105.55 points or 1.34% to 7,788.42, Shanghai Composite decreased 87.22 points or 2.74% to 3,099.19, Jakarta Composite decreased 76.1 points or 1.67% to 4,470.19, Nikkei 225 decreased 69.38 points or 0.39% to 17,697.96, KOSPI Index decreased 19.54 points or 1.02% to 1,898.08 and FTSE Bursa Malaysia KLCI decreased 12.48 points or 0.75% to 1,645.13.