Markets at day's low on incremental selling pressure

Extending their early losses, the local equity markets continued weak trade and were now trading at day’s low points in afternoon session, on the back of sustained selling activities by market-participants. The mood on the street remained cautious with CII report that over 40 per cent of Indian companies surveyed by industry chamber CII are expecting that the Reserve Bank will go in for a further hike in interest rates in the current fiscal. Investors ignored the report that Fitch Ratings has raised India’s growth forecast for the current fiscal to 7.8 percent, from 7.4 percent projected earlier. In its Global Economic Outlook, Fitch, however, flagged tightening of financial conditions, rising oil bill and weak bank balance sheets as headwinds to growth. Moreover, fresh weakness in the rupee coupled with rising global crude oil prices also dampened the trading sentiment. On the sectoral front, telecom sector was in focus with private report stating that with several operators winding down their businesses, job losses in the beleaguered telecom sector have been heavy. Telcos are expected to let go of around 50,000-75,000 employees in 2018. 

On the global front, Asian markets are trading mostly in red, following the mixed cues from Wall Street Friday and as investors focused on U.S.-China trade tensions. Back home, the BSE Sensex is currently trading at 36403.64, down by 437.96 points or 1.19% after trading in a range of 36367.44 and 36945.50. There were 6 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was declined 2.43%, while Small cap index was down by 2.70%.

The only gaining sectoral indices on the BSE were IT up by 2.28% and TECK up by 1.64%, while Realty down by 4.96%, Auto down by 3.56%, Consumer Disc down by 3.17%, Telecom down by 2.65% and Consumer Durables was down by 2.47% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.62%, Infosys up by 2.44%, Coal India up by 2.27%, NTPC up by 1.70% and ONGC up by 1.69%. On the flip side, Mahindra & Mahindra down by 5.87%, HDFC down by 4.66%, Maruti Suzuki down by 4.42%, Indusind Bank down by 3.96% and Tata Steel down by 3.57% were the top losers.

Meanwhile, Finance Minister Arun Jaitley has said that the government will take all the necessary steps to ensure that adequate liquidity is maintained/provided to non-banking financial companies (NBFCs), mutual funds (MFs) and small and medium enterprises (SMEs).

Jaitley’s statements come in the wake of Indian stock markets witnessed sudden mid-session plunge last Friday over concerns of liquidity crisis being faced by some of the NBFCs.

Following volatility in the equities market, the Reserve Bank of India (RBI) along with the Securities and Exchange Board of India (SEBI) is closely monitoring the recent developments in the financial sector and ready to take appropriate actions, if necessary, to calm the jittery investors.

The CNX Nifty is currently trading at 10994.20, down by 148.90 points or 1.34% after trading in a range of 10983.00 and 11170.15. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were TCS up by 3.65%, Tech Mahindra up by 2.97%, Infosys up by 2.55%, Coal India up by 2.45% and HCL Tech. up by 1.83%. On the flip side, Indiabulls Housing Finance down by 12.01%, Bajaj Finance down by 7.58%, Mahindra & Mahindra down by 6.20%, HDFC down by 4.88% and Maruti Suzuki down by 4.65% were the top losers.

Asian markets are trading mostly in red; Hang Seng decreased 504.31 points or 1.84% to 27,449.27 and Jakarta Composite fell 71.28 points or 1.21% to 5,886.46. On the flip side, Straits Times increased 8.56 points or 0.27% to 3,226.24.