Markets at Day’s low; Sensex plunges over 125 points

The local benchmarks extended their losses to hover near day’s low points in late afternoon session, following weak opening in European markets. Sluggish growth of India’s core sector and selling pressure in some sectors like Utilities, IT, TECK and Metal, also kept the markets under pressure. Core sector output grew at a slower pace of 4.7% in the month October 2017, from 5.2% in September 2017, largely due to subdued performance of cement, steel and refinery segments. Besides, economic growth data failed to boost markets which were weighed down by concerns about the country’s fiscal deficit and global risk factors such as rising crude prices. India’s fiscal deficit, the gap between expenditure and revenue, touched 96.1% of the budget estimate in the first seven months of financial year 2017-18, mainly because of lower revenue collections and increase in expenditure. Traders paid no heed towards the reports that the country’s manufacturing sector growth touched a thirteen-month high in November, driven by an accelerated increase in new orders, purchasing activity and output. The seasonally adjusted Nikkei India Manufacturing PMI - a composite single-figure indicator of manufacturing performance - climbed to 52.6 in November from 50.3 in October.

On the global front, European markets were trading in red, as global investors awaited the US Senate's vote on tax reform legislation. However, Asian markets were trading in green. Back home, in scrip specific development, IL&FS Engineering and Construction Company touched the roof after the company bagged Rs 581.96 crore road contract in Maharashtra.

The BSE Sensex is currently trading at 33024.12, down by 125.23 points or 0.38% after trading in a range of 33018.02 and 33300.81. There were 9 stocks advancing against 21 stocks declining on the index, while 1 stock remained unchanged.

The broader indices were trading in green; the BSE Mid cap index was up by 0.01%, while Small cap index was up by 0.11%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.42%, FMCG up by 0.30%, Consumer Durables up by 0.07% and Industrials up by 0.02%, while Utilities down by 0.93%, IT down by 0.73%, TECK down by 0.72%, Metal down by 0.68% and Power down by 0.57% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 0.80%, Larsen & Toubro up by 0.67%, Mahindra & Mahindra up by 0.62%, ONGC up by 0.47% and ITC up by 0.45%. On the flip side, Coal India down by 1.61%, Tata Steel down by 1.60%, Sun Pharma down by 1.31%, Power Grid Corporation down by 1.24% and Infosys down by 1.15% were the top losers.

Meanwhile, in a positive surprise, India’s manufacturing sector growth touched a thirteen-month high in November, driven by an accelerated increase in new orders, purchasing activity and output. It indicated a robust improvement in manufacturing business conditions. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) - a composite single-figure indicator of manufacturing performance - climbed to 52.6 in November from 50.3 in October. A reading above 50 in terms of manufacturing performance indicates expansion.

In the month of November, the amount of new work received by manufacturers grew at fastest rate since October 2016, however capital goods market group could not catch this growth rate. Besides, new export business also rose for the first time in three months, but at marginal rate. As per survey report, a combination of higher order book volumes and a decrease in GST rates, has led to greater production and firms responded to the improvement in operating conditions by creating jobs and purchasing greater quantities of raw materials and semi-finished items in November.

Rising input costs, which grew at the fastest pace since April, remained the biggest concern for the manufacturers as increasing raw material prices including that for chemicals, steel and petroleum products, added upward pressure on output prices. However, the report found that intensive competitive conditions restricted the firms to fully pass on higher cost burdens to customers, resulting in marginal output charge inflation.

The CNX Nifty is currently trading at 10177.00, down by 49.55 points or 0.48% after trading in a range of 10176.60 and 10272.70. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Ambuja Cement up by 1.60%, Mahindra & Mahindra up by 0.81%, Kotak Mahindra Bank up by 0.73%, Ultratech Cement up by 0.69% and UPL up by 0.64%. On the flip side, Indiabulls Housing Finance down by 3.50%, Tech Mahindra down by 2.57%, HCL Tech. down by 2.33%, Tata Steel down by 1.79% and Coal India down by 1.63% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite increased 0.43 points or 0.01% to 3,317.62, Taiwan Weighted increased 39.93 points or 0.38% to 10,600.37 and Nikkei 225 increased 94.07 points or 0.41% to 22,819.03. On the flip side, Hang Seng decreased 103.11 points or 0.35% to 29,074.24 and KOSPI Index decreased 0.96 points or 0.04% to 2,475.41.

All European markets were trading in red; Germany’s DAX decreased 83.97 points or 0.64% to 12,940.01, France’s CAC decreased 25.28 points or 0.47% to 5,347.51 and UK’s FTSE 100 decreased 8.42 points or 0.11% to 7,318.25.