Key indices turn negative; Sensex loses over 100 points

Key Indian equity indices turned negative in late afternoon session, tracking weak opening of European markets.  Heavy sell-off at Metal, Power and Utilities counters, also contributed to the markets’ losses. Anxiety came among the traders, as Reserve Bank of India (RBI) has revealed that the top 20 defaulters of public sector banks account for Rs 2.36 lakh crore, or 20%, of total bad loans in India, though it is yet to reveal their names. The total bad loans in the Indian banking system are Rs 10.2 lakh crore as of March 31, 2018. Some concerns also came after private reports that India could see two rate hikes in the initial monetary policies of next financial year. Traders paid no heed towards a private report showing that India is now the second-fastest growing innovator after China among major Asian countries, with patent publication nearly doubling in a decade.

On the sectoral front, stocks of oil industry were in focused, amid reports that India’s crude oil import surged 10.5 per cent to 21 million tonnes (MT) in October 2018-a seven-year high - compared with 19 MT a year ago, in turn pulling up the country’s crude oil import dependency to 83.5 per cent. Further, stocks of logistic companies remained in limelight with Commerce and Industry Minister Suresh Prabhu’s statement that the government is preparing an integrated logistics plan to fast-track movement of goods and cut transactions cost of businesses.

On the global front, European markets were trading in red, as the UK budget deficit in October far exceeded expectations and was the biggest for the month in three years, raising the likelihood of the government missing its borrowing target for the fiscal year. The public sector net borrowing, or PSNB, excluding state banks was GBP 8.8 billion in October, which was the highest for the month since 2015. In September, the deficit was GBP 2.84 billion and the shortfall was GBP 7.23 billion in October 2017. Asian markets were trading in mixed, as a mixed bag of US data released overnight pointed to softening growth in the world's largest economy. In its latest Economic Outlook report, the Organization for Economic Co-operation and Development (OECD) has cut its global growth projection for next year to 3.5 percent from 3.7 percent predicted in May.

The BSE Sensex is currently trading at 35081.64, down by 118.16 points or 0.34% after trading in a range of 35062.78 and 35364.50. There were 8 stocks advancing against 23 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.30%, while Small cap index was up by 0.03%.

The only gaining sectoral indices on the BSE were Capital Goods up by 0.21%, Industrials up by 0.06% and FMCG up by 0.01%, while Metal down by 1.44%, Power down by 1.10%, Utilities down by 0.87%, PSU down by 0.78% and Realty down by 0.76% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports & SEZ up by 1.86%, HDFC up by 0.75%, ONGC up by 0.66%, Larsen & Toubro up by 0.53% and Hero MotoCorp up by 0.43%. On the flip side, Mahindra & Mahindra down by 3.06%, Wipro down by 2.09%, Power Grid Corporation down by 2.05%, Tata Steel down by 1.73% and Indusind Bank down by 1.23% were the top losers.

Meanwhile, the European Union (EU) has unveiled a 'strategy paper' to expand ties with India in several key areas including trade, investment, infrastructure, defence and security, blue economy and environment. This strategy paper replaces a similar document issued in 2004.

The strategy paper also illustrates a very important fact that India is on the top of European Union agenda in the field of external relations. It lays the foundation to take the relationship to the next level, besides seeking to work together for a rules-based international order as well as to jointly deal with pressing regional and global challenges.

As per the strategy paper, the EU has an interest in strengthening its political, economic and defence cooperation with India as a strong partnership with New Delhi was key for a balanced EU policy towards Asia as a whole.

The CNX Nifty is currently trading at 10563.10, down by 36.95 points or 0.35% after trading in a range of 10552.60 and 10646.25. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Zee Entertainment up by 4.00%, Adani Ports & SEZ up by 1.99%, Indiabulls Housing Finance up by 1.18%, Hero MotoCorp up by 0.89% and ONGC up by 0.82%. On the flip side, Mahindra & Mahindra down by 3.01%, Hindalco down by 2.31%, Ultratech Cement down by 2.24%, Wipro down by 1.89% and Indian Oil Corporation down by 1.84% were the top losers.

Asian markets were trading mixed; Straits Times increased 6.95 points or 0.23% to 3,045.60, Hang Seng rose 47.94 points or 0.18% to 26,019.41, Jakarta Composite added 42.38 points or 0.71% to 5,990.43 and Nikkei 225 gained 139.01 points or 0.64% to 21,646.55. On the flip side, Shanghai Composite decreased 6.08 points or 0.23% to 2,645.43, KOSPI lost 6.60 points or 0.32% to 2,069.95 and Taiwan Weighted was down by 26.81 points or 0.28% to 9,714.71.
 
All European markets were trading in red, UK’s FTSE 100 decreased 55.85 points or 0.8% to 6,994.38, France’s CAC plunged 39.85 points or 0.81% to 4,935.65 and Germany’s DAX was down by 80.16 points or 0.72% to 11,164.01