Local bourses enter into red territory in noon deals

The local barometer gauges erased all the gains and entered into red territory in the early afternoon session on account of selling in frontline blue chip counters. Sentiments were down despite the private report stating that India’s Current Account Deficit (CAD) for this financial year is expected to be around $40 billion, or 1.5% of GDP. CAD rose sharply to $14.3 billion, 2.4% of GDP, at the end of first quarter of 2017-18. Weak global cues and selling in FMCG, Metal and Realty stocks also dragged the major indices down. Though, gains in Healthcare and Consumer Durables stocks restricted further fall.  In scrip specific development, Bajaj Auto was up by around half percent after registering a jump of 7% in total sales to 382,464 units in October 2017 against 356,168 units in October 2016.

On the global front, Asian markets were trading in mostly in red, following the mixed lead overnight from Wall Street after the Federal Reserve left interest rates on hold as expected and reinforced expectations of a December interest-rate hike. Back home, the BSE Sensex is currently trading at 33557.72, down by 42.55 points or 0.13% after trading in a range of 33547.10 and 33657.57. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.44%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were Healthcare up by 2.22%, Consumer Durables up by 0.34%, Utilities up by 0.31%, IT up by 0.24% and PSU up by 0.02%, while FMCG down by 0.78%, Metal down by 0.76%, Realty down by 0.58%, Telecom down by 0.51% and Auto down by 0.39% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy’s Lab up by 2.93%, Lupin up by 2.49%, Sun Pharma up by 2.05%, Coal India up by 1.98% and ICICI Bank up by 1.60%. On the flip side, Tata Motors - DVR down by 1.72%, Mahindra & Mahindra down by 1.26%, Hindustan Unilever down by 1.23%, Tata Motors down by 1.19% and ITC down by 1.08% were the top losers.

Meanwhile, Union Steel Minister Chaudhary Birender Singh has said that coastal shipping is crucial for the growth of steel sector and the economy in general. He described coastal shipping as ‘cheap, eco-friendly, energy-efficient and relatively safe mode of transport’.

Singh has said that coastal shipping would help to reduce logistics cost incurred by steel and other major industries drastically and the industry can be made more competitive. He also said that there was great scope for developing coastal steel clusters in the country and to increase exports to other countries. He added that India has the potential to become a major exporter of steel in the global market.

The Steel Minister further said the synergies between the steel, ship-building and automobile sectors should be fully exploited by making use of coastal shipping. He also said that, according to a study, India could save up to Rs 35,000 crore per annum by coastal shipping of commodities.

The CNX Nifty is currently trading at 10424.25, down by 16.25 points or 0.16% after trading in a range of 10417.45 and 10453.00. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 3.23%, Aurobindo Pharma up by 3.17%, Sun Pharma up by 2.31%, Lupin up by 2.31% and GAIL India up by 1.81%. On the flip side, Tech Mahindra down by 4.14%, Hindalco down by 2.47%, Tata Motors down by 1.54%, Hindustan Unilever down by 1.19% and ITC down by 1.19% were the top losers.

Asian markets were trading in mostly in red; Hang Seng decreased 30.62 points or 0.11% to 28,563.44, Taiwan Weighted was down by 17.85 points or 0.17% to 10,788.51, Shanghai Composite shed 15.41 points or 0.45% to 3,380.50, KOSPI Index dipped 10.11 points or 0.4% to 2,546.36 and FTSE Bursa Malaysia KLCI dropped 3.35 points or 0.19% to 1,740.58.

On the flip side, Jakarta Composite increased 21.53 points or 0.36% to 6,059.67 and Nikkei 225 was up by 119.04 points or 0.53% to 22,539.12.