Local equity markets languish near day’s lows; Nifty trades below 6,900 level

Indian equity markets are languishing near day’s lows point in noon deals on account of sustained selling amid weak global cues. No respite seems to be coming to equity markets tailing somber regional counterparts. Both Sensex and Nifty, trading with loss of over a percent, were languishing below the crucial 22,700 and 6,900 levels respectively. Meanwhile, broader indices too magnified losses and were trading with cut of around three percent. Investors opted to remain on sidelines ahead of Consumer Price Index (CPI) and Index of Industrial Production (IIP) data scheduled to be released later in the day. Depreciation in rupee too dampened sentiments. The rupee was trading weak at 68.42 in the afternoon session on sustained demand for the American currency from importers and banks.

On the global front, Asian shares slipped on mounting concerns over the health of European banks further threatened a global economic outlook already under strain from falling oil prices and slowdown in China and other emerging markets. Closer home, Auto stocks edged lower after domestic passenger car sales fell for the first time in 15 months after logging a marginal dip to 1,68,303 units in January as against 1,69,527 units in the year-ago period. Banking stocks continue to trade lower after SBI and PNB reported weak set of Q3 numbers. Meanwhile, the market breadth on the BSE was negative; there were 351 shares on the gaining side against 1,987 shares on the losing side while 106 shares remain unchanged.

The BSE Sensex is currently trading at 22684.80, down by 267.03 points or 1.16% after trading in a range of 22669.11 and 23116.27. 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 2.47%, while Small cap index down by 3.52%.

The only gaining sectoral indices on the BSE were Telecom up by 1.35% and FMCG up by 0.10%, while Capital Goods down by 4.47%, Oil & Gas down by 3.66%, Realty down by 3.49%, Metal down by 2.88% and PSU down by 2.83% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 4.44%, ITC up by 1.54%, NTPC up by 1.49%, Axis Bank up by 1.25% and Hindustan Unilever up by 0.86%. On the flip side, BHEL down by 11.09%, Adani Ports &Special down by 8.46%, Larsen & Toubro down by 4.98%, Tata Steel down by 4.67% and ONGC down by 4.14% were the top losers.

Meanwhile, the government is set to align interest rates on small savings schemes with market rates and revise them on a quarterly basis, effective from April 1. Economic Affairs Secretary Shaktikanta Das has said that the decision has been taken and the executive order and notification will be issued in a day or two. Currently, Small savings rates are linked to government securities’ interest rates which are readjusted every year.

Das further said that the alignment of interest rates of the schemes will be done with G-sec rates of comparable maturities and added that the interest rate reduction would mostly affect schemes at the lower end of the maturity curve. The rates under the girl child scheme Sukanya Samriddhi Yojana and the senior citizen scheme will remain unaltered. Besides he said that whatever spreads they have over the G-Sec rates will not be altered. Similarly, all long term savings more than five years will continue to have the existing spreads.

Das further said that the Finance Ministry has finalized suggestions that were made by various stakeholders, including banks and other ministries and brought it up during the pre-budget meetings with country’s top banks and leading economists suggesting changes in the small savings rate.

At present, the returns on small savings schemes are benchmarked to the yield on government securities. Small savings schemes include the National Savings Scheme, Kisan Vikas Patra, post office deposits, and Public Provident Fund. The interest rates for these schemes range from 8.4 per cent for a one-year deposit to 9.3 per cent for the five-year Senior Citizen Savings Scheme.  Earlier, on Sept 29, following the rate cut by Reserve Bank of India,  Finance Minister Arun Jaitley had announced that the centre would review small savings schemes to enable transmission of the central bank’s rate cut by banks.

The CNX Nifty is currently trading at 6892.85, down by 83.50 points or 1.20% after trading in a range of 6888.20 and 7026.75. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 4.03%, Idea Cellular up by 2.03%, Power Grid up by 1.72%, ITC up by 1.57% and NTPC up by 1.53%. On the flip side, BHEL down by 10.69%, Adani Ports &Special down by 8.05%, Hindalco down by 6.20%, BPCL down by 5.35% and Larsen & Toubro down by 4.89% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 tumbled 760.78 points or 4.84% to 14,952.61, Hang Seng declined 196.05 points or 1.06% to 18,349.75, Taiwan Weighted decreased 68.24 points or 0.84% to 8,063.00, Jakarta Composite shed 39.29 points or 0.82% to 4,736.57 and KOSPI Index was down by 26.26 points or 1.41% to 1,835.28. On the flip side, FTSE Bursa Malaysia KLCI was up by 2.53 points or 0.15% to 1,646.48.