Sensex, Nifty add losses; Realty worst performer

Tracking weak European markets, the Indian equity benchmarks added losses in late afternoon session, with the both the larger peers, Sensex and Nifty falling 0.96% each. Realty index performed worst among all other sectoral indices on the BSE, while the broader markets also remained under pressure with the huge losses of more than 2.50%. Some concerns came with reports that Indian companies raised Rs 12,470 crore through initial public offerings (IPOs) in April-September this fiscal, a plunge of 53% from the year-ago period, mainly due to volatile equity markets and uncertainties in macro environment. The domestic sentiments remained downbeat even if the Reserve Bank of India (RBI) retained the GDP growth projection for FY19 at 7.4%, with risks broadly balanced, in the fourth Bi-monthly Monetary Policy Statement and revised the inflation projection to 3.9-4.5% for the second half of FY19, down from 4.8% earlier. Traders took note of a private report that the Reserve Bank of India is expected to increase policy rates by 25 basis points in the first quarter of the next year, primarily led by inflationary pressures and depreciation of the rupee.

The markets paid no heed towards report that investments in the Indian capital market through participatory notes climbed to Rs 84,647 crore till August-end, making it the first rise in such fund infusion in 10 months. On the sectoral front, oil companies stocks were trading in green, despite rating agency Moody's report indicating that the recent cut in petrol and diesel prices by Rs 2.50 by the Centre is estimated to reduce the combined EBITDA (earnings before interest, tax, depreciation and amortization) margins of IOCL, HPCL and BPCL by Rs 6500 crore during current fiscal, while stocks related to infra sector remained in focused with a Crisil Infrastructure Advisory report stating that the share of private investments in the infrastructure sector has fallen to a decadal low of around 25% in FY18, sharply down from a high of 37% cent in FY08.

On the global front, European markets were trading in red, as Germany's producer prices increased at the fastest pace in 11 months in August. As per figures from Destatis, producer prices advanced 3.1% year-on-year in August, following a 2.9% increase logged in July. Asian markets were trading in red, amid anxiety about rising US interest rates and cooling growth in top consumer China. China's private sector logged a moderate growth in September as improved services activity was offset by softer manufacturing growth. The survey data from IHS Markit showed that the Caixin composite output index rose marginally to 52.1 from 52.0 in August. Back home, in scrip specific development, Bajaj Auto surged after the company introduced its ‘5-5-5’ offer this festive season. The customers buying Platina, Discover, Pulsar or V range of motorcycles will get five years of free own damage insurance cover, five free services and five years of free warrant.

The BSE Sensex is currently trading at 34045.92, down by 331.07 points or 0.96% after trading in a range of 34031.98 and 34636.43. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 2.63%, while Small cap index was down by 2.56%.

The only gaining sectoral indices on the BSE were Energy up by 1.86% and Oil & Gas up by 1.41%, while Realty down by 4.15%, Metal down by 3.97%, Basic Materials down by 2.83%, Power down by 2.10%, Industrials down by 2.03% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 4.70%, Hero MotoCorp up by 3.41%, Kotak Mahindra Bank up by 2.72%, Asian Paints up by 2.63% and Reliance Industries up by 2.23%. On the flip side, Vedanta down by 8.65%, Tata Steel down by 3.20%, HDFC down by 3.09%, Axis Bank down by 2.99% and Tata Motors down by 2.91% were the top losers.

Meanwhile, emphasizing that there is no dearth of funds, Commerce and Industry Minister Suresh Prabhu has said that infrastructure companies need to work out on innovative instrument and structure to attract global funds for investment in infrastructure sector.

The minister also mentioned about efforts being taken by the government to attract various global funds. Suresh Prabhu has also said “I have talked to funds in Australia and Canada and government is trying to work with them. Uniqueness of this is that the pension funds of both Canada and Australia is more than the their national GDP.”

Besides, the Commerce Minister has also invited the chairman of Abu Dhabi Investment Authority, which is the largest sovereign wealth fund in the world and they are very keen to invest in India, seeing the country’s growth story. But Suresh Prabhu pointed that instrument, structures and policies are missing and infrastructure developers need to work on it.

The CNX Nifty is currently trading at 10217.90, down by 98.55 points or 0.96% after trading in a range of 10201.95 and 10398.35. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were HPCL up by 5.39%, Yes Bank up by 4.71%, Hero MotoCorp up by 3.89%, Indian Oil Corporation up by 3.52% and Kotak Mahindra Bank up by 3.19%. On the flip side, Vedanta down by 9.35%, Hindalco down by 7.72%, Tech Mahindra down by 3.67%, Wipro down by 3.09% and Tata Steel down by 3.07% were the top losers.

Asian markets were trading mostly in red; Hang Seng plunged 370.00 points or 1.41% to 26,202.57, Taiwan Weighted decreased 61.19 points or 0.59% to 10,455.93, KOSPI dropped 13.69 points or 0.61% to 2,253.83, Straits Times lost 22.97 points or 0.72% to 3,186.82 and Shanghai Composite dipped 104.84 points or 3.86% to 2,716.51. On the flip side, Jakarta Composite was up by 43.49 points or 0.75% to 5,775.43.

All European markets were trading in red; UK’s FTSE 100 fell 25.71 points or 0.35% to 7,292.83, France’s CAC decreased 37.49 points or 0.7% to 5,321.87 and Germany’s DAX was down by 93.98 points or 0.78% to 12,017.92.