Weak trade continues on Dalal Street

Indian equity benchmarks continued their weak trade in late afternoon deals, amid extremely negative Asian cues. The mood of the markets remained impacted by a private report stating that exchange rate movements increase the vulnerability of firms from emerging market economies, including India, which have used the proceeds of dollar bond to fund financial assets. Investors’ sentiments also dented with private report stating that Indian financial markets’ liquidity position has worsened with cash deficit widening to about Rs 1.4 lakh crore this week compared with a small surplus in first week of October. Some caution also prevailed in the markets ahead of Futures and Options (F&O) derivative expiry for October series due today. However, the markets managed to pare some of their losses with private report that corporate India’s business optimism for the October-December quarter improved marginally on expectations of higher festive season demand, implementation of the 7th Pay Commission awards and increase in minimum support price (MSP) of Kharif crops.

On the global front, European markets were trading mostly in green, as investors digested corporate earnings and looked ahead to a rate decision by the European Central Bank (ECB). Asian markets were trading mostly in red, on the back of a sharp fall in US markets that erased all the gains made this year, as investor concerns mount that economic growth is peaking amid an uncertain geopolitical backdrop. Back home, on the sectoral front, tea sector stocks remained in focus with India making a strong pitch to expand its steadily growing market for black tea in China by organising a tea promotion campaign that would help in scaling up the tea trade between the two countries.

The BSE Sensex is currently trading at 33754.56, down by 279.40 points or 0.82% after trading in a range of 33553.18 and 33838.76. There were 9 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.51%, while Small cap index was down by 0.97%.

The few gaining sectoral indices on the BSE were Oil & Gas up by 0.46%, IT up by 0.37% and TECK up by 0.12%, while Telecom down by 2.21%, Realty down by 2.05%, Basic Materials down by 1.45%, Metal down by 1.34% and Bankex down by 1.25% were the top losing indices on BSE.

The top gainers on the Sensex were Wipro up by 3.01%, ONGC up by 2.35%, TCS up by 0.79%, Coal India up by 0.76% and Mahindra & Mahindra up by 0.57%. On the flip side, Bharti Airtel down by 5.54%, Vedanta down by 2.76%, Adani Ports & SEZ down by 2.71%, ICICI Bank down by 2.30% and SBI down by 2.17% were the top losers.

Meanwhile, in order to augment the global competitiveness of key sectors of Indian economy, the Union Cabinet has given its approval for setting up of Indian Institute of Skills (IISs) at different locations across the country in Public Private Partnership (PPP) modes. The PPP modes will be explored for promotion of IIS at select locations based on demand and available infrastructure.

The IISs will provide high quality skill training, applied research education and a direct and meaningful connection with industry. With this move, the country’s aspiring youth will get opportunity to have an access to highly skilled training. The initiative will also enhance the scope of accountability through its linkage with industry and global competitiveness across sectors.

Besides, by leveraging advantages of private sector enterprise and public capital in terms of Government land, it would create new institutes of expertise, knowledge and competitiveness.

The CNX Nifty is currently trading at 10146.65, down by 78.10 points or 0.76% after trading in a range of 10079.30 and 10166.60. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Wipro up by 3.04%, ONGC up by 2.12%, HCL Tech. up by 2.02%, IOC up by 1.16% and Bharti Infratel up by 0.89%. On the flip side, Indiabulls Housing Finance down by 7.26%, Bharti Airtel down by 5.76%, Hindalco down by 3.37%, Grasim Industries down by 2.97% and UPL down by 2.77% were the top losers.

Asian markets were trading mostly in red; KOSPI decreased 34.28 points or 1.66% to 2,063.30, Hang Seng dropped 255.32 points or 1.02% to 24,994.46, Taiwan Weighted shed 238.61 points or 2.51% to 9,520.79, Straits Times fell 24.30 points or 0.81% to 3,007.78 and Nikkei 225 dipped 822.45 points or 3.87% to 21,268.73. On the flip side, Jakarta Composite increased 45.54 points or 0.79% to 5,754.96 and Shanghai Composite was up bhy 0.50 points or 0.02% to 2,603.80.

European markets were trading mostly in green; France’s CAC increased 37.16 points or 0.74% to 4,990.25 and Germany’s DAX was up by 14.16 points or 0.13% to 11,205.79, while UK’s FTSE 100 was down by 15.53 points or 0.22% to 6,947.45.