Key Indices extend losses in last leg of trade

Key equity indices extended southward journey in last leg of trade to breach their crucial 35,900 (Sensex) and 10,800 (Nifty) levels, as investors booked profit across-the-board. Traders took note of report that the Reserve Bank of India (RBI), in consultation with the government, has decided to have a rule-based dynamic limit for outstanding stock of External Commercial Borrowings (ECBs) at 6.5% of Gross domestic product (GDP) at current market prices. Depreciation in Indian rupee against dollar too dampened sentiments. The rupee slipped 59 paise in late trade to trade at 70.29 against the US dollar. Weak opening in European counters too dampened sentiments with all the European counters trading in red at this point of time as deepening concerns over uncertain economic outlook sent investors fleeing for safety. Risk-off sentiment intensified as investors face headwinds on several fronts. However, most of the Asian counters, paring all of their early losses, trading in green at this point of time.

Back home, shares of information technology (IT) companies were under pressure on Friday with the Nifty IT index falling over 1 per cent and extending its decline into the fourth straight day, after the US indices extended falls as sentiment remained fragile. On the flip side, shares of public sector undertaking (PSU) banks gained after Finance Minister Arun Jaitley on Thursday said that government will infuse Rs 830 billion in public sector banks in the remaining months of the current fiscal (2018-19).

The BSE Sensex is currently trading at 35839.99, down by 591.68 points or 1.62% after trading in a range of 35839.99 and 36483.49. There were 4 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 1.55%, while Small cap index was down by 0.99%.

The top losing sectoral indices on the BSE were TECK down by 2.00%, IT down by 1.92%, Telecom down by 1.92%, Consumer Durables down by 1.63% and Consumer Disc was down by 1.54%, while there were no gainers on the BSE sectoral front.

The few gainers on the Sensex were Tata Motors up by 0.65%, Coal India up by 0.40%, NTPC up by 0.37% and Tata Motors - DVR up by 0.05%. On the flip side, Maruti Suzuki down by 3.10%, Asian Paints down by 2.88%, Infosys down by 2.61%, Bharti Airtel down by 2.50% and ICICI Bank down by 2.35% were the top losers.

Meanwhile, the Retirement fund body, Employment Provident Fund Organisation (EPFO) in its latest ‘Net Payroll Data’ report has showed that India created 827231 new jobs in the month of October 2018. The job creation slowed down from 875884 (revised) in September.

As per the report, the maximum jobs were created in in the age bracket of 22-25 and in this bracket the top 10 sectors which have created more fresh jobs include Expert Services, Trading - Commercial Establishments, Electric-Mechanical-or General Engineering Products, Building & Construction Industry, Engineers- Engineering Contractors, establishments engaged in Manufacturing- Marketing Servicing- Usage of Computers, Financing Establishment, Hospitals, Heavy - Fine Chemicals and Banks Other Than Nationalised Banks. In the similar age bracket, Maharashtra was the first among the States to create maximum payroll, followed by Karnataka, Gujarat, Tamil Nadu and Delhi.

According to the data report, 5525 new jobs were created in less than 18 age group category, while 222988 jobs in 18-21 age group category. Further, 22-25 age, 26-28 age, 29-35 age and more than 35 age group category witnessed 232877, 102963, 136226 and 126652 new payrolls respectively in October 2018.

The CNX Nifty is currently trading at 10769.95, down by 181.75 points or 1.66% after trading in a range of 10767.55 and 10963.65. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were HPCL up by 2.37%, Coal India up by 0.76%, BPCL up by 0.66%, NTPC up by 0.23% and Tata Motors up by 0.17%. On the flip side, Indian Oil Corporation down by 5.38%, Indiabulls Housing Finance down by 4.28%, UPL down by 4.18%, Zee Entertainment down by 3.53% and Maruti Suzuki down by 3.10% were the top losers.

Most of the Asian markets are trading in green; Straits Times gained 1.11 points or 0.04% to 3,051.73, Hang Seng jumped 129.89 points or 0.51% to 25,753.42, Taiwan Weighted rose 2.15 points or 0.02% to 9,676.67, KOSPI rose 1.37 points or 0.07% to 2,061.49 and Jakarta Composite was up by 10.71 points or 0.17% to 6,158.59. On the flip side, Nikkei 225 declined 226.39 points or 1.11% to 20,166.19 and Shanghai Composite was down by 20.02 points or 0.79% to 2,516.25.

All the European markets are trading in red; DAX declined 55.99 points or 0.53% to 10,555.11, CAC decreased 39.32 points or 0.84% to 4,653.14 and FTSE was down by 15.53 points or 0.23% to 6,696.40.