Markets extend losses in late afternoon session

Indian equity indices extended their losses in late afternoon session and hovering near lowest point of the day amid weakness in European markets. Sentiments remained subdued with ratings agency Fitch’s statement that it is less optimistic in their projections for the 27 Indian listed corporate they publicly rate. Investor remained cautious with the report indicating that India's economy lost momentum in the final three months of 2016 after Prime Minister Narendra Modi's ban on high-value notes hurt consumption and businesses. Having posted growth of above 7% for six consecutive quarters, India's gross domestic product is expected to have expanded just 6.5% in the October-December quarter - the weakest in nearly three years.

On the global front, European markets were trading in red as investors turned their focus to the inauguration of Donald Trump as U.S. president, whose election in November has fueled expectation of stronger economic growth boosted by potential fiscal spending and tax cuts. However, Asian markets were trading in green. Back home, in scrip specific development, Phillips Carbon Black edged higher after the company reported over threefold jump in its net profit at Rs 17.47 crore for the quarter ended December 31, 2016, as compared to Rs 5.08 crore for the same quarter in the previous year.

The BSE Sensex is currently trading at 27053.31, down by 255.29 points or 0.93% after trading in a range of 27032.90 and 27264.41. There were 5 stocks advancing against 24 stocks declining on the index, while one stock remained unchanged.

The broader indices were trading in red; the BSE Mid cap index was down by 1.28%, while Small cap index was down by 1.03%.

The sole gaining sectoral index on the BSE was FMCG up by 0.17%, while Metal down by 2.27%, Power down by 1.96%, PSU down by 1.76%, Realty down by 1.63% and Bankex down by 1.52% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.41%, ITC up by 0.73%, Cipla up by 0.29%, Bajaj Auto up by 0.24% and Asian Paints up by 0.17%. On the flip side, Axis Bank down by 6.31%, Adani Ports & Special economic zone down by 3.15%, Tata Steel down by 2.48%, ONGC down by 2.06% and ICICI Bank down by 1.93% were the top losers.

Meanwhile, accelerating efforts towards digital payments, union minister for electronics and IT Ravi Shankar Prasad has said that the government is now going to introduce a new Aadhaar-based digital payment system for the common man soon. He also said that after the demonetisation of high-value currency it is subsequent digital push.

Prasad said that this unique payment initiative will be based on the thumb impression, verified through the Aadhaar identification for safety and security of the easier payment system for the common man. He also confirmed that Aadhaar has already enrolled around 99 percent of adult citizens of the country. He added that Prime Minister Narendra Modi wanted Digital India to bridge the digital divide and empower the poor and under-privileged.

The minister had earlier said that Aadhaar based payments can be all pervasive way of digital transactions since it doesn't require everyone to have a Smartphone and added that all people need to remember their Aadhaar number and authenticate themselves through their biometrics.

The CNX Nifty is currently trading at 8353.60, down by 81.50 points or 0.97% after trading in a range of 8353.00 and 8423.65. There were 9 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Idea Cellular up by 3.82%, Yes Bank up by 1.45%, Bharti Airtel up by 1.23%, Ultratech Cement up by 1.03% and ITC up by 0.73%. On the flip side, Axis Bank down by 6.34%, Adani Ports & Special economic zone down by 3.30%, Tata Motors - DVR down by 3.16%, Hindalco down by 2.84% and Tata Steel down by 2.68% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 0.12 points or 0.01% to 1,666.63, Taiwan Weighted increased 13.34 points or 0.14% to 9,331.46, Shanghai Composite increased 21.84 points or 0.7% to 3,123.14 and Nikkei 225 increased 65.66 points or 0.34% to 19,137.91. On the flip side, Hang Seng decreased 164.05 points or 0.71% to 22,885.91, Jakarta Composite decreased 47.07 points or 0.89% to 5,251.88 and KOSPI Index decreased 7.18 points or 0.35% to 2,065.61.

All European markets were trading in red; Germany’s DAX decreased 38.17 points or 0.33% to 11,558.72, France’s CAC decreased 15.27 points or 0.32% to 4,825.87 and UK’s FTSE 100 decreased 7.93 points or 0.11% to 7,200.51.