Bears tighten grip on Dalal Street

Bears tighten grip on the street in late afternoon session, with the Sensex and the Nifty plunging more than a percent, tracking weak European markets. Heavy selling pressure across Realty and Auto stocks coupled with subdued trade in other Asian markets, weighed on the domestic sentiments. In line with the larger peers, the broader indices too remained under selling pressure, with the losses of more than 2%, while Mahindra & Mahindra emerged as top loser among all major leaders on the BSE. The street remained cautious with Moody's Investors Service’s latest report stating that the government’s measures to boost capital inflow in to the country is unlikely to reverse the rupee depreciation. Moody's further noted that steps to reduce non-essential goods import may provide support to contain the imports bill, but will likely have a lagged effect. Traders paid no heed towards the United Nations Development Programme’s (UNDP) latest report showing that the country has halved its Multidimensional Poverty Index (MPI) to 27.5% from 54.7% between 2005-06 and 2015-16. As per the report, 271 million people in India moved out of poverty in last ten years.

On the global front, European markets were trading in red despite France's economy grew at a steady pace, as previously estimated, in the second quarter. As per detailed figures from Insee, gross domestic product advanced 0.2 percent sequentially, the same rate as seen in the first quarter, and in line with the second estimate published on August 29. Asian markets were trading in red, on trade concerns. China cancelled planned trade talks with the US and also cancelled a planned visit to the US by vice premier Liu He scheduled for this week. Back home, in scrip specific development, Filtra Consultants and Engineers gained after the company received an approval for incorporation of subsidiary company in India wherein the company will be holding 51% of total paid-up share capital of the proposed Company.

The BSE Sensex is currently trading at 36385.92, down by 455.68 points or 1.24% after trading in a range of 36,216.95 and 36,945.50. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 2.05%, while Small cap index was down by 2.56%.

The few gaining sectoral indices on the BSE were IT up by 2.29%, TECK up by 1.54% and Energy up by 0.37%, while Realty down by 4.54%, Auto down by 3.58%, Telecom down by 3.27%, Consumer Discretionary Goods & Services down by 3.01% and Industrials down by 2.32% were the top losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.92%, Infosys up by 2.45%, Coal India up by 1.38%, Reliance Industries up by 1.08% and Vedanta up by 0.70%. On the flip side, Mahindra & Mahindra down by 6.29%, Adani Ports & SEZ down by 6.05%, Indusind Bank down by 5.66%, HDFC down by 5.30% and Bharti Airtel down by 4.79% were the top losers.

Meanwhile,  praising India’s momentous progress in reducing multidimensional poverty, the United Nations Development Programme (UNDP) in its latest report has said that the country has halved its Multidimensional Poverty Index (MPI) to 27.5% from 54.7% between 2005-06 and 2015-16.

As per the report, 271 million people in India moved out of poverty in last ten years. Jharkhand state was at top among all states in reducing multidimensional poverty, followed by Arunachal Pradesh, Bihar, Chhattisgarh, and Nagaland. However, the states such as Delhi, Kerala and Goa have low incidences of multidimensional poverty.

Further, the report noted that 364 million Indians still continue to experience acute deprivations in health, nutrition, schooling and sanitation, despite good progress in reducing the poverty index. It further added that more than half of India’s poor are living in just four states--Bihar, Jharkhand, Uttar Pradesh and Madhya Pradesh and these states accounted for 196 million MPI poor people.

The CNX Nifty is currently trading at 10996.95, down by 146.15 points or 1.31% after trading in a range of 10943.60 and 11170.15. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were TCS up by 3.90%, Tech Mahindra up by 2.87%, Infosys up by 2.47%, Coal India up by 1.42% and HCL Tech. up by 1.37%. On the flip side, Eicher Motors down by 7.16%, Mahindra & Mahindra down by 6.55%, Adani Ports & SEZ down by 6.01%, Indusind Bank down by 5.70% and HDFC down by 5.53% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 454.19 points or 1.65% to 27,499.39 and Jakarta Composite was down by 73.53 points or 1.25% to 5,884.21. On the flip side, Straits Times was up 4.19 points or 0.13% to 3,221.87. 

All European markets were trading in red; UK’s FTSE 100 decreased 9.65 points or 0.13% to 7,480.58, France’s CAC dipped 12.62 points or 0.23% to 5,481.55 and Germany’s DAX was down by 50.86 points or 0.41% to 12,380.02.