Barometer gauges continue to trade in red terrain

Indian benchmarks continued to trade deep in red in early noon session, with Sensex and Nifty plunging over 150 and 80 points respectively amid concerns over rising crude oil prices and uncertainty over the RBI policy meet later this week weighed on investor sentiment. Except IT and TECK, all the other BSE sectoral indices were trading in negative terrain. Besides, on the BSE, Kotak Mahindra Bank, Larsen & Toubro and Bharti Airtel were amongst the major losers, while on the NSE, Ultratech Cement, Bajaj Finserv and Axis Bank were amongst the top losers. Sentiments remained subdued with report that overseas investors pulled out a massive Rs 21,000 crore ($3 billion) from the capital markets in September, making it the steepest outflow in four months, on widening current account deficit amid global trade tensions. Meanwhile, rainfall in India's annual monsoon season was below average and less than forecast, with a fourth of the regions including key crop-growing northern states receiving less rain than needed. Traders paid no heed to the private report that the Indian factory activity expanded more quickly in September on strong domestic and export order growth, a business survey showed, a welcome sign of strength as policy makers worry about a sharp drop in the rupee and fallout from global trade frictions.

On the global front, Asian markets were trading mixed, by a wipe of holiday markets across China and Hong Kong, leaving early markets with thin volumes as traders await the rest of the globe to wake up. In scrip specific developments, Rane Holdings surged on acquiring stake in REVL. Besides, Maruti Suzuki jumped despite reporting marginal fall in September sales.

The BSE Sensex is currently trading at 36057.42, down by 169.72 points or 0.47% after trading in a range of 36003.63 and 36291.51. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 1.89%, while Small cap index down by 2.42%.

The only gaining sectoral indices on the BSE were IT up by 1.86%, TECK up by 1.48%, while Capital Goods down by 2.87%, Consumer Durables down by 2.67%, Realty down by 2.40%, Industrials down by 2.33%, Basic Materials was down by 2.14% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 3.30%, TCS up by 2.87%, Infosys up by 2.14%, Wipro up by 1.48% and HDFC up by 1.36%. On the flip side, Kotak Mahindra Bank down by 5.76%, Axis Bank down by 3.81%, Bharti Airtel down by 3.44%, Larsen & Toubro down by 3.02% and Indusind Bank was down by 2.16% were the top losers.

Meanwhile, the joint report between the International Monetary Fund (IMF), World Trade Organization (WTO) and World Bank has stated that India's economic reforms and growth story provides compelling indication that openness in services contributes to long run growth performance. It noted that the reforms of the 1990s brought more openness, better regulation and greater investment, permitting Indian manufacturing firms to source services from a range of domestic and foreign providers operating in a more competitive environment.

The report titled ‘Reinvigorating Trade and Inclusive Growth' further said that manufacturers' access to better, more reliable, and more diverse business services enhanced firms' ability to invest in new opportunities and technologies, to concentrate production in fewer locations, to efficiently manage inventories, and to coordinate decisions with suppliers and customers.

Referring to a 2016 study, the report said that procompetitive reforms in banking, insurance, telecommunications and transport enhanced the productivity of both foreign and locally-owned manufacturing firms. It also said that other empirical studies support these findings, but also stress the significance of well-designed reforms accompanied by sound domestic regulation.

The CNX Nifty is currently trading at 10845.30, down by 85.15 points or 0.78% after trading in a range of 10832.60 and 10931.90. There were 12 stocks advancing against 37 stocks declining on the index, while 1 stock remained unchanged.

The top gainers on Nifty were Yes Bank up by 3.48%, TCS up by 3.07%, Infosys up by 1.73%, Wipro up by 1.70% and Bharti Infratel was up by 1.60%. On the flip side, Kotak Mahindra Bank down by 5.71%, Axis Bank down by 3.96%, Ultratech Cement down by 3.96%, Bharti Airtel down by 3.71% and Bajaj Finance was down by 3.69% were the top losers.

Asian markets were trading mixed; Nikkei 225 jumped 125.72 points or 0.52% to 24,245.76, Straits Times surged 3.37 points or 0.1% to 3,260.42 and Taiwan Weighted was up by 45.46 points or 0.41% to 11,051.80. On the other hand, Jakarta Composite lost 24.15 points or 0.41% to 5,952.40 and KOSPI was down by 2.91 points or 0.12% to 2,340.16.