Indian equities add losses; metal, oil & gas stocks drag

Adding some losses, Indian equities continued their trade in red territory in early afternoon session, on the back of higher selling appeared in Metal, Oil & Gas, FMCG and IT stocks. Trading sentiments remained subdued with Standard & Poor’s decision of retaining its sovereign rating for India at ‘BBB-’ with a stable outlook, dashing hopes of another upgrade after rival Moody’s last week lifted its rating by a notch after a gap of nearly 14 years. Some pessimism also came with industry body ASSOCHAM’s latest report stating that inflation would remain a key concern for the RBI and the government, dimming hopes of a cut in interest rates. Moreover, investors maintained cautious approach ahead of the second quarter gross domestic product (GDP) number, which are slated to be released on November 30. However, broader indices were holding up their fort in green with gains in the range of 0.20%-0.50%.  In scrip specific development, Larsen & Toubro was up by around half a percent with its construction arm -- L&T Construction -- bagging orders worth Rs 3,572 crore.

On the global front, Asian markets were trading in red, as investors looked ahead to a possible US Senate vote on proposed tax changes and data announcements from major economies. Back home, the BSE Sensex is currently trading at 33557.28, down by 121.96 points or 0.36% after trading in a range of 33557.06 and 33661.33. 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 0.20%, while Small cap index was up by 0.47%.

The top gaining sectoral indices on the BSE were Realty up by 0.89%, Consumer Durables up by 0.49%, Capital Goods up by 0.38%, Power up by 0.37% and Consumer Disc up by 0.20%, while Metal down by 0.76%, Oil & Gas down by 0.56%, FMCG down by 0.52%, IT down by 0.45% and Energy down by 0.43% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 2.19%, NTPC up by 1.88%, ONGC up by 1.13%, Sun Pharma up by 0.56% and Larsen & Toubro up by 0.47%. On the flip side, Adani Ports & SEZ down by 1.61%, Infosys down by 1.14%, Tata Steel down by 1.09%, Tata Motors down by 1.05% and Tata Motors - DVR down by 1.02% were the top losers.

Meanwhile, the industry chamber Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its latest report has stated that inflation would remain a key concern both for the government and Reserve Bank of India (RBI), dimming chances of any interest rates cut in the next bi-monthly monetary policy meeting in December. It observed that as uncertainty looms over crude oil prices and vegetables, largely on the back of rising retail prices of onion and tomatoes, it is disrupting household budgets.

The report claimed that the RBI’s mandate and also its track record is that it has favoured a hard stance against inflation rather than batting for growth, while the government's friendly advice for downward rates may not be available this time around. It also said that as per the monetary policy framework, RBI has a mandate to maintain retail inflation in a band of 4 percent (+/- 2 percent) and the Consumer Price Index growth for October at 5.38 percent points towards the threshold, the central bank may not like to breach it.

ASSOCHAM has stated that while the October numbers show fuel and light inflation at 6.36 percent annualised, and vegetables at above 7 percent, onion and tomato may take the retail inflation further up in November. It noted that firming up crude oil prices are adding to the anxiety. The chamber said that going forward, both external and internal factors would weigh on the mind of the Monetary Policy Committee of the RBI. It pointed out that to that extent, the macro picture may pose a challenge even as corporate India hopes for growth revival, which may now have to depend on factors other than cost of borrowing.

The CNX Nifty is currently trading at 10348.35, down by 41.35 points or 0.40% after trading in a range of 10344.75 and 10369.25. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 2.09%, NTPC up by 1.91%, UPL up by 1.87%, Bharti Infratel up by 1.48% and ONGC up by 1.16%. On the flip side, HPCL down by 1.88%, Indusind Bank down by 1.54%, Adani Ports & SEZ down by 1.45%, GAIL India down by 1.40% and BPCL down by 1.33% were the top losers.

All the Asian markets were trading in red; Hang Seng decreased 240.43 points or 0.81% to 29,625.89, Taiwan Weighted declined 103.16 points or 0.95% to 10,750.93, Nikkei 225 shed 54.86 points or 0.24% to 22,495.99, KOSPI Index was down by 36.52 points or 1.44% to 2,507.81, Shanghai Composite slipped 34.44 points or 1.03% to 3,319.38, Jakarta Composite dipped 6.36 points or 0.1% to 6,060.78 and FTSE Bursa Malaysia KLCI fell 3.05 points or 0.18% to 1,714.18.