Benchmarks continue to languish into red zone

Indian stock markets added to their losses in the early noon session, with Nifty and Sensex registering losses of more than half a percent due to heavy selling in Oil & Gas, IT and TECK stocks. Weak rupee and feeble cues from Asian markets also dampened sentiments. Broader indices too were trading in red. Sentiments got dented as Moody’s Investors Service in its latest report has stated that the profitability of Indian banks is ‘distinctively weak’ compared to those in BRICS nations. It also added that capitalisation is the 'weakest' for Indian banks with a tangible common equity ratio of 8.7 per cent at the end of 2017. Traders also remain concerned with a private report stating that the government doesn’t have centralised information as yet on prosecutions launched against persons identified for suspicious cash deposits. Responding to an RTI filing by FE, the I-T department, however, informed that of the 6 lakh PAN holders identified under demonetisation to have never filed returns, only 1.5 lakh started filing returns subsequently. Meanwhile, a report stated that the Income Tax Department has launched a major operation to investigate cases of illegal funds and properties stashed abroad by Indians and may invoke the new anti-black money law for strict criminal action in many such cases.

On the global front, Asian shares edged lower as earnings season weigh on Wall Street, while a slew of negative factors from Saudi Arabia’s diplomatic isolation to concerns over Italy’s budget and Brexit talks depressed sentiment.

Back home, stocks related to paints sector lost sheen after Asian Paints and Kansai Nerolac Paints reported weak set of numbers for the quarter ended September 2018 (Q2FY19). Stocks related to oil and gas space remained in limelight on report that state-owned oil marketing companies (OMCs) reduced the prices of domestic transport fuels -- petrol and diesel -- for the sixth consecutive day on Tuesday  (October 23, 2018) on the back of easing global crude oil prices. In New Delhi petrol prices were at Rs 81.34 a litre, while diesel stood Rs 74.85 a litre.

The BSE Sensex is currently trading at 33953.88, down by 180.50 points or 0.53% after trading in a range of 33852.70 and 34073.92. There were 12 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.84%, while Small cap index was down by 0.66%.

The only gaining sectoral indices on the BSE were Realty up by 0.47% and Consumer Durables was up by 0.13%, while Oil & Gas down by 2.10%, IT down by 1.63%, TECK down by 1.45%, Healthcare down by 1.30% and Consumer Disc was down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 2.27%, Tata Motors - DVR up by 2.05%, Tata Motors up by 1.76%, Indusind Bank up by 1.37% and Yes Bank up by 0.92%. On the flip side, Asian Paints down by 5.87%, Wipro down by 3.73%, Sun Pharma down by 2.89%, ONGC down by 2.85% and Infosys down by 2.06% were the top losers.

Meanwhile, Commerce Secretary Anup Wadhwan has expressed hope that Indian exports will reach a record-high figure both in rupee and US dollar terms during the current financial year. He also informed that the government would address the anxieties such as easier availability of credit from banks and boosting schemes like the merchandise exports from India scheme, in the wake of the challenges in a global environment.

Wadhwan has stated that the export scenario in the region, especially in Tamil Nadu, was healthy, and lauded exporters for their performance despite protectionism and unilateralism. He noted that despite many challenges, including issues like protectionism adopted by some developed countries, the exporters have been doing well over the last two-and-a-half years. On the country signing a free trade agreement with the European Union, he said it is on the table and they will do their best to expedite pact.

Meanwhile, breaking the five months growth momentum, India’s exports fell by 2.15% in the month of September 2018 over the same period in the previous year, due to the base impact even though trade deficit narrowed to a five-month low. Trade deficit narrowed to $13.98 billion in September 2018 as against $17.39 billion in August 2018. However, the overall trade deficit for April- September 2018-19 widened to $94.32 billion as compared to $76.66 billion during April- September 2017-18.
The CNX Nifty is currently trading at 10172.65, down by 72.60 points or 0.71% after trading in a range of 10152.25 and 10222.10. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Indiabulls Housing up by 4.45%, HDFC up by 2.43%, Tata Motors up by 1.52%, Coal India up by 1.16% and Indusind Bank up by 0.78%. On the flip side, Asian Paints down by 6.54%, Wipro down by 3.77%, Sun Pharma down by 3.03%, BPCL down by 2.82% and Indian Oil Corporation down by 2.77% were the top losers.

All the Asian markets were trading under pressure; Straits Times decreased 40.39 points or 1.33% to 3,037.67, Nikkei 225 declined 604.04 points or 2.74% to 22,010.78, Taiwan Weighted plunged 199.08 points or 2.04% to 9,775.20, Hang Seng slipped 778.960 points or 3.07% to 25,374.19, Shanghai Composite fell 47.43 points or 1.82% to 2,607.45, KOSPI decreased 63.83 points or 3.04% to 2,097.88 and Jakarta Composite was down 24.26 points or 0.42% to 5,816.18.