Bourses hover near Day’s low

The local benchmarks extended their losses in late afternoon session to hover near intraday low points, despite firm opening in European markets. Telecom index declined the most among other indices, while the broader markets also continued their trade in red terrain. Besides, major industry losers like Yes Bank, followed by SBI and Tata Motors, also contributed to downtrend. Sentiments remained downbeat, as the overall trade deficit widened to $16298.47 million during the month under review as against $9904.82 million in January 2017, the highest in more than three years. The trade deficit during April- January 2017-18 was $131155.52 million as against $ 88337.00 million in the same period last year. The market participants were also worried, as the World Bank identified two global risks that could jeopardise the country’s progress towards a ‘global middle-class status’. These two risks are anti-international trade sentiment and climate change. The World Bank further noted that India’s services exports are being challenged and the climate change is posing threat to the agricultural sector. Meanwhile, Road Transport and Highways Minister Nitin Gadkari stated that the government would not bring any separate electric vehicle policy and would just frame rules for the category.

On the global front, European markets were trading in green, as investors shrugged off the possibility of more interest rate hikes from the Federal Reserve and turned their focus to encouraging earnings news. Back home, in scrip specific development, Lloyds Metals and Energy moved up after the company signed Memorandum of Understanding (MoU) with Government of Maharashtra to facilitate investment in respect of the proposed Mineral based Steel Plant at Gadchiroli District, Maharashtra, with an investment of Rs 700 crore generating direct employment opportunity up to 800 persons in two phases spread over next 10 years, during the Magnetic Maharashtra Convergence - 2018.

The BSE Sensex is currently trading at 34038.86, down by 258.61 points or 0.75% after trading in a range of 34011.23 and 34508.24. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.08%, while Small cap index was down by 1.30%.

The lone gaining sectoral index on the BSE was IT up by 0.05%, while Telecom down by 1.68%, Auto down by 1.60%, PSU down by 1.55%, Metal down by 1.54% and Realty down by 1.38% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 1.36%, Dr. Reddy’s Lab up by 1.16%, TCS up by 0.83%, Asian Paints up by 0.49% and Infosys up by 0.41%. On the flip side, Yes Bank down by 2.53%, SBI down by 2.42%, Tata Motors down by 1.98%, Maruti Suzuki down by 1.91% and Tata Steel down by 1.88% were the top losers.

Meanwhile, India’s debt capital markets growth moderated by 3 per cent in 2017, on the back of slowdown in bond issuances. As per credit rating agency ICRA’s latest report, the debt markets reported a growth of 16 per cent in the value of corporate bonds outstanding as on December 2017, which is lower than 19 per cent growth reported for the same period in the previous year.

The report further noted that the bond issuances volume decreased by 2.03 per cent to Rs 4.83 lakh crore during April-December 2017 from Rs 4.93 lakh crore reported during the same period last year. Besides, the volume of corporate bonds outstanding increased significantly by 16.30 per cent to Rs 26.47 lakh crore as on December 2017 from Rs 22.76 lakh crore as on December 2016.

The rating agency highlighted that though the growth of corporate bond issuances got hit with recent volatility and surge in long-term bond yields, India's corporate debt/GDP penetration remains low as compared to many other countries and due to this the medium to long-term prospects for growth of India's debt capital market remains intact.

The CNX Nifty is currently trading at 10461.20, down by 84.30 points or 0.80% after trading in a range of 10449.15 and 10612.90. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Ambuja Cement up by 2.01%, Kotak Mahindra Bank up by 1.27%, Dr. Reddy’s Lab up by 1.17%, TCS up by 0.78% and Infosys up by 0.66%. On the flip side, Eicher Motors down by 4.09%, Indiabulls Housing Finance down by 2.90%, Tech Mahindra down by 2.75%, Yes Bank down by 2.39% and SBI down by 2.33% were the top losers.

Most of the Asian markets were closed on account of Lunar New Year holiday. Nikkei 225 increased 255.27 points or 1.19% to 21,720.25.

All European markets were trading in green; France’s CAC increased 38.57 points or 0.74% to 5,261.09, UK’s FTSE 100 increased 43.43 points or 0.6% to 7,278.24 and Germany’s DAX increased 76.84 points or 0.62% to 12,423.01.