Bourses slip into negative territory

Key Indian indices erasing all the gains slipped into negative territory in late afternoon session, on the back of weak opening in European markets. Higher selling at Metal, Telecom, Auto and Realty counters, also weighed on the sentiments. The private report stating that the trade deficit has ballooned to $88 billion between April and October, up 60% from the comparable period a year ago due to weak exports and a sharp rise in imports, also kept the indices under pressure. However, further losses were got restricted on the hopes of improvement in the GDP. NITI Aayog vice-chairman Rajiv Kumar said that India GDP growth rate in Q2 is likely at 6.2-6.3% and for the full year could be closer to 7% and for Second-half growth has to be 7.5%. Besides, among secondary indices, BSE Mid cap and Small cap were higher by 0.09%, and 0.36% respectively, despite sluggish larger peers.

On the global front, European markets were trading in red, following a sharp fall in Chinese markets and amid weak trading volumes across the world. Asian markets were also trading in red. Back home, in scrip specific development, Talwalkars Better Value Fitness gained after the company entered into a strategic alliance with Mickey Mehta, global leading holistic health guru, wellness wizard & corporate life coach.

The BSE Sensex is currently trading at 33530.10, down by 31.45 points or 0.09% after trading in a range of 33468.30 and 33670.19. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.09%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were IT up by 1.16%, TECK up by 0.77%, Energy up by 0.74%, Oil & Gas up by 0.26% and Capital Goods up by 0.21%, while Metal down by 0.93%, Telecom down by 0.50%, Auto down by 0.34%, Realty down by 0.28% and Bankex down by 0.27% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 2.39%, Reliance Industries up by 1.24%, Power Grid Corporation up by 0.99%, Sun Pharma up by 0.89% and ONGC up by 0.44%. On the flip side, Adani Ports & SEZ down by 2.21%, Dr. Reddy’s Lab down by 2.10%, Bajaj Auto down by 1.46%, Asian Paints down by 1.25% and NTPC down by 1.13% were the top losers.

Meanwhile, the Union Cabinet has given its green signal to India’s membership for European Bank for Reconstruction and Development (EBRD), in a move to enhance India's international profile and promote its economic interests. The Department of Economic Affairs, Ministry of Finance is going to take necessary steps for that.

As per the government’s notification, the move will improve investment opportunities of the country as well as the competitive strength of the Indian firms, and provide an enhanced access to international markets in terms of business opportunities, procurement activities, consultancy assignments etc. Besides, it is expected to increase the scope of cooperation between India and EBRD through co-financing opportunities in manufacturing, services, Information Technology, and Energy. Going further, the membership of EBRD will also drive the growth of country’s export.

India will have to make minimum initial investment of approx 1 million euros for the membership and by this investment, the country will get the minimum 100 shares in the bank. The financial implication could be higher if India wants to buy more shares.

The CNX Nifty is currently trading at 10330.25, down by 12.05 points or 0.12% after trading in a range of 10307.30 and 10374.30. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Infosys up by 2.35%, HCL Tech. up by 1.50%, Tech Mahindra up by 1.42%, HPCL up by 1.35% and Reliance Industries up by 1.35%. On the flip side, Dr. Reddy’s Lab down by 2.32%, Adani Ports & SEZ down by 2.29%, Hindalco down by 1.88%, Vedanta down by 1.68% and GAIL India down by 1.55% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 295.55 points or 0.99% to 29,707.94, Shanghai Composite decreased 78.55 points or 2.29% to 3,351.92, Jakarta Composite decreased 8.79 points or 0.14% to 6,060.99, KOSPI Index decreased 3.36 points or 0.13% to 2,537.15 and FTSE Bursa Malaysia KLCI decreased 2.45 points or 0.14% to 1,721.09. On the flip side, Taiwan Weighted increased 31.98 points or 0.3% to 10,854.57.

All European markets were trading in green; Germany’s DAX decreased 51.85 points or 0.4% to 12,963.19, UK’s FTSE 100 decreased 40.71 points or 0.55% to 7,378.31 and France’s CAC decreased 2.06 points or 0.04% to 5,350.70.