Markets reverse gains; Sensex dips over 100 points

The local equity benchmarks reversed their gains in late afternoon session and slipped into negative territory, with Sensex falling more than 100 points, weighted down by weak opening in European markets. Higher sell off at Realty, Metal and Banking counters along with concerns ahead of US Federal Reserve's policy outcome, wherein it is widely expected to raise interest rates by at least 25 basis points (bps), put pressure on the indices. Anxiety remained among the investors as the Asian Development Bank (ADB) scaled down its current fiscal year gross domestic product (GDP) growth forecast for India to 6.7% from prior estimate of 7%, citing tepid economic growth in the first half, demonetisation and transitory challenges of GST. Besides, in line with larger peers, the broader indices too fell into red terrain and were holding losses of around half a percent each. Separately, retail inflation jumped to 15-month high of 4.88% in the month of November 2017, as compared to 3.63% during the corresponding period last year and 3.58% in the month of October 2017, while India’s Industrial production growth hit a three-month low of 2.2% in the month of October 2017, as compared to 4.2% growth in October 2016.

On the global front, European markets were trading mostly in red, as investors awaited the outcome of the US Federal Reserve's two-day policy meeting. However, Asian markets were trading in green. Back home, in scrip specific development, Talwalkars Better Value Fitness traded higher after the company commenced the construction of its first leisure club in Wakad, Pune.

The BSE Sensex is currently trading at 33104.74, down by 123.25 points or 0.37% after trading in a range of 33101.19 and 33404.26. There were 9 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.51%, while Small cap index was down by 0.48%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.72%, Energy up by 0.56%, Consumer Durables up by 0.15% and Telecom up by 0.01%, while Realty down by 1.72%, Metal down by 1.02%, Bankex down by 0.84%, Power down by 0.71% and Capital Goods down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 1.22%, ONGC up by 0.74%, Reliance Industries up by 0.43%, Dr. Reddy’s Lab up by 0.43% and Lupin up by 0.33%. On the flip side, ICICI Bank down by 1.97%, Tata Motors - DVR down by 1.48%, Power Grid Corporation down by 1.35%, Adani Ports & SEZ down by 1.21% and Cipla down by 0.85% were the top losers on BSE.

Meanwhile, citing tepid economic growth in the first half, demonetisation and transitory challenges of GST, an international development finance institution, the Asian Development Bank (ADB) has scaled down its current fiscal year gross domestic product (GDP) growth forecast for India to 6.7% from prior estimate of 7%. However, it expects GDP to pick up in remaining two quarters of FY18 with the implementation of the government’s structural reform measures like bank recapitalization and easement in compliance of GST.

ADB also revised GDP growth forecast for next fiscal year (FY19) to 7.3%, down from the earlier forecast of 7.4%. In its latest outlook report, ADB noted that even if the economy reversed from 5 consecutive quarters of deceleration in the second quarter of fiscal year 2017, the rebound in the economy was weaker than expected due to rising crude oil prices, soft private investment growth, and weather-related risks to agriculture.

For overall developing Asia, ADB raised its economic growth estimate to 6% for this year from a previous estimate of 5.9%, on the back of stronger exports and domestic consumption fuel growth and excluding Asia’s newly industrialized economies, growth is expected at 6.5% this year.

The CNX Nifty is currently trading at 10210.75, down by 29.40 points or 0.29% after trading in a range of 10208.50 and 10296.55. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were HPCL up by 2.18%, Indian Oil Corporation up by 1.59%, Ultratech Cement up by 1.46%, BPCL up by 1.43% and Bharti Infratel up by 1.15%. On the flip side, ICICI Bank down by 2.19%, Vedanta down by 1.96%, Bajaj Finance down by 1.52%, Adani Ports & SEZ down by 1.49% and Yes Bank down by 1.43% were the top losers.

Asian markets were trading mostly in green; FTSE Bursa Malaysia KLCI increased 7.07 points or 0.41% to 1,736.64, Jakarta Composite increased 12.03 points or 0.2% to 6,044.40, KOSPI Index increased 19.55 points or 0.79% to 2,480.55, Shanghai Composite increased 22.22 points or 0.68% to 3,303.04, Taiwan Weighted increased 27.42 points or 0.26% to 10,470.70 and Hang Seng increased 428.22 points or 1.49% to 29,222.10. On the flip side, Nikkei 225 decreased 108.1 points or 0.47% to 22,758.07.

European markets were trading mostly in red; Germany’s DAX decreased 5.87 points or 0.04% to 13,177.66 and France’s CAC decreased 0.85 points or 0.02% to 5,426.34. On the flip side, UK’s FTSE 100 increased 2.51 points or 0.03% to 7,502.92.