Markets extend losses in late afternoon session

The Sensex and Nifty slumped in late afternoon session, as investors indulged in trimming their bets after the minutes of the US Federal Reserve's September meeting indicated a possible rate hike this year. Subdued global markets and weak macroeconomic data too dampened market sentiments. Investors also remained wary ahead of monthly inflation data based on consumer price index (CPI) for September due later in the day and wholesale price index (WPI) due on Friday. On sectoral front, most of the IT-related stocks were trading in red ahead of quarterly results of Tata Consultancy Services due later in the day and Infosys due on Tomorrow. Metal stocks were reeling under pressure reflecting weakness in global metal prices after exports at the world's biggest metals consumer China fell more than expected in the month of September. Global cues too remained sluggish with European markets making a weak start and CAC, DAX and FTSE all were trading in red in early deals.

The BSE Sensex is currently trading at 27626.43, down by 455.91 points or 1.62% after trading in a range of 27563.84 and 28042.62. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.86%, while Small cap index was down by 2.00%.

The losing sectoral indices on the BSE were Realty down by 2.91%, Metal down by 2.57%, Bankex down by 2.50%, Consumer Durables down by 2.13%, Power down by 1.68%, while there were no gaining indices on BSE sectoral front.

The top gainers on the Sensex were ONGC up by 1.94%, Infosys up by 1.94%, Cipla up by 0.59%, Hero MotoCorp up by 0.27% and Asian Paints up by 0.25%. On the flip side, Adani Ports &Special down by 5.38%, ICICI Bank down by 4.06%, Tata Motors down by 3.49%, HDFC down by 3.43% and SBI down by 3.30% were the top losers.

Meanwhile, government has come out with three more set of draft regulations under the Insolvency and Bankruptcy Code 2016, including liquidation of insolvent corporate persons, insolvency resolution process for corporate persons and application to judicial authority.

The government has till now notified six draft regulations under the code.The new set of draft rules for insolvency resolution process for corporate persons specify the duties and power of the interim resolution professional. The draft rules for liquidation of insolvent corporate persons require an insolvency professional appointed as a liquidator to conduct the process of liquidation involving preparation of preliminary and progress reports during the procedure. The final report shall form part of the application for the dissolution to the Adjudicating Authority.

As part of the process for implementing the Insolvency and Bankruptcy Code, the government has already set up the Insolvency and Bankruptcy Board of India (IBBI). Draft norms have been put up for stakeholder feedback, the last date for which is October 31,2016  and the rules will be finalized after taking into consideration the views of the stakeholders. Recently, the corporate affairs ministry issued draft regulations pertaining to registration of insolvency professionals, agencies and model bye-laws. A working group of experts, set up by the ministry, has prepared these regulations.

The CNX Nifty is currently trading at 8569.50, down by 139.30 points or 1.60% after trading in a range of 8541.35 and 8681.55. There were 7 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.27%, Infosys up by 1.93%, Cipla up by 0.73%, Hero MotoCorp up by 0.35% and Asian Paints up by 0.26%. On the flip side, Adani Ports &Special down by 5.32%, Bank of Baroda down by 5.31%, Aurobindo Pharma down by 4.08%, ICICI Bank down by 3.98% and Hindalco down by 3.95% were the top losers.

Asian market were trading mostly in red; Hang Seng decreased 375.75 points or 1.61% to 23,031.30, Nikkei 225 dropped 65.76 points or 0.39% to 16,774.24, Taiwan Weighted declined 33.43 points or 0.36% to 9,219.17, Jakarta Composite fell 21.07 points or 0.39% to 5,343.54, KOSPI Index was down by 18.29 points or 0.9% to 2,015.44 and FTSE Bursa Malaysia KLCI decreased 3.51 points or 0.21% to 1,663.52. On the flip side, Shanghai Composite increased 2.85 points or 0.09% to 3,061.35.

European markets were trading in red; Germany’s DAX slumped 134.22 points or 1.28% to 10,388.85, France’s CAC dropped 60.48 points or 1.36% to 4,391.76 and UK’s FTSE 100 decreased 40.08 points or 0.57% to 6,983.93.