Markets at day's low on incremental selling pressure

Extending their losses, the local equity benchmarks continued weak trade and were now trading at day’s low points in early afternoon session, on the back of sustained selling activities by market-participants. Sentiments got a hit as a foreign brokerage enlightened that a prolonged bull market across stocks, bonds and credit has left a measure of average valuation at the highest since 1900, a condition that at some point is going to translate into pain for investors. The report added that all good things must come to an end and there will be a bear market, eventually. Investors have maintained cautious approach ahead of September quarter GDP data to be released later in the day. Besides, weak Asian cues coupled with depreciation in Indian rupee against the dollar, too impacted the sentiments. All the sectoral indices edged down on the bourses with Energy, Banking, and PSU stocks falling the most. In scrip specific development, Steel Strips Wheels (SSWL) surged by over three percent on bagging fresh exports order for its Truck wheels plant in Chennai.

On the global front, Asian markets were trading mostly in red, as investors ponder the longevity of the global equity bull run. Meanwhile, China's official nonmanufacturing purchasing managers' index, a measure of activity outside factory gates, rose to 54.8 in November from 54.3 in October. Back home, the BSE Sensex is currently trading at 33284.48, down by 318.28 points or 0.95% after trading in a range of 33281.65 and 33576.20. There were 4 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.43%, while Small cap index was down by 0.23%.

The top losing sectoral indices on the BSE were Energy down by 1.30%, Bankex down by 1.13%, PSU down by 0.85%, Oil & Gas down by 0.80% and Metal down by 0.80%, while there were no gainers on the BSE sectoral front.

The top gainers on the Sensex were Bajaj Auto up by 0.51%, Dr. Reddy’s Lab up by 0.26%, Wipro up by 0.22% and Larsen & Toubro up by 0.13%. On the flip side, Cipla down by 1.83%, Reliance Industries down by 1.82%, Tata Motors down by 1.59%, Axis Bank down by 1.56% and Kotak Mahindra Bank down by 1.55% were the top losers.

Meanwhile, the Food Safety and Standards Authority of India (FSSAI) has issued a set of guidelines regarding the process to recall food products from markets if found unsafe. It noted that the main purpose behind this is to help food business operators (FBOs) frame a proper recall plan and implement them when the situation demand. Besides, it said that at the time of recall being carried out, the FBO shall submit their detailed recall plan to the CEO, FSSAI. It also said that the concerned company should also inform consumers, depending upon the extent of the recall.

As per the FSSAI, food recalls are essential to remove or correct marketed food products and their labelling that violate the laws administered by the regulatory authority. It also expalined that recall can be defined as an action to remove food products from market at any stage of the food chain, including that possessed by consumer, which may pose a threat to the public health or food that violate the Act, or the rules or regulations made there under. According to its guidelines, there are 10 steps which must be carried out to ensure a successful recall exercise. It said the key steps are that FBOs need to set up a recall management team, inform the regulator, identify all products to be recalled, detain and segregate products to be recalled which are in the company's control besides verifying the effectiveness of the recall.

The Food safety regulator further said that the recovered product must be stored in an area which is separated from any other food product. It also said that companies must also maintain records of the amount of recovered product and the batch codes of the product recovered. It also said that after recovery, products may be corrected or reprocessed before release to the market if it is fit for human consumption. It noted the companies, which have produced unsafe products, should take steps so that the need for such recalls does not arise again in future.

The CNX Nifty is currently trading at 10265.35, down by 95.95 points or 0.93% after trading in a range of 10263.15 and 10332.70. There were 6 stocks advancing against 44 stocks declining on the index.

The top gainers on Nifty were Bosch up by 1.57%, Indiabulls Housing up by 0.89%, Bajaj Auto up by 0.46%, BPCL up by 0.25% and Dr. Reddys Lab up by 0.16%. On the flip side, Reliance Industries down by 1.95%, Ultratech Cement down by 1.90%, Tech Mahindra down by 1.77%, Cipla down by 1.72% and Axis Bank down by 1.68% were the top losers.

The Asian markets were trading mostly in red; Hang Seng decreased 448.18 points or 1.51% to 29,175.65, Taiwan Weighted was down by 153.11 points or 1.43% to 10,560.44, KOSPI Index shed 36.53 points or 1.45% to 2,476.37, Shanghai Composite slipped 27.7 points or 0.83% to 3,310.16, Jakarta Composite dropped 16.77 points or 0.28% to 6,044.60 and FTSE Bursa Malaysia KLCI decreased 1.56 points or 0.09% to 1,718.82.

On the flip side, Nikkei 225 increased 127.76 points or 0.57% to 22,724.96.