Key gauges extend losses in last leg of trade

Indian equity benchmarks extended their losses in last leg of trade, with frontline gauges breaching their crucial 38,700 (Sensex) and 11,650 (Nifty) levels. Traders remained on sidelines ahead of inflation data due to release on April 12. Sentiments remained dampened with Care Ratings’ latest report that Indian IT majors hit due to H1-B visa restrictions. It said that Restrictions on the H1-B visas by the US have compelled Indian tech companies to hire more locally and led to an escalation in employee costs. Weak opening in European counters too dampened sentiments with all the major indices were trading in red at this point of time, as Germany's exports and imports declined more-than-expected in February at the fastest pace in a year, as demand ebbed amid the global uncertainties, adding to concerns sparked by recent data that growth in the biggest economy in the euro area remained sluggish in the first quarter. As per preliminary figures from the Federal Statistical Office, Exports fell a calendar and seasonally-adjusted 1.3 percent month-on-month. Asian markets were trading mixed.

The BSE Sensex is currently trading at 38692.62, down by 169.61 points or 0.44% after trading in a range of 38520.96 and 39041.25. There were 11 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.67%, while Small cap index was down by 0.38%.

The top gaining sectoral indices on the BSE were IT up by 0.94%, TECK up by 0.74%, Power up by 0.47%, Capital Goods up by 0.07% and Utilities up by 0.05%, while Realty down by 2.14%, Energy down by 1.66%, Oil & Gas down by 1.44%, PSU down by 0.87% and Metal down by 0.76% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.33%, Mahindra & Mahindra up by 1.14%, ONGC up by 0.99%, TCS up by 0.88% and Power Grid up by 0.82%. On the flip side, Yes Bank down by 2.68%, Tata Motors - DVR down by 2.59%, Tata Motors down by 2.58%, Bajaj Finance down by 2.53% and Vedanta down by 2.40% were the top losers.

Meanwhile, highlighting improved Indian economic growth, World Bank Chief Economist for the South Asia Region, Hans Timmer has said that the next government needs to focus on export-led growth. He also added that the country grew too much in the last five years, on the back of domestic demand and its exports.

Hans Timmer praised attempts to liberalize markets within India, further saying ‘that is what is needed to become more competitive.’ Besides, he emphasized that the GST is trying to create more flexibility within the country, so that it's easier to trade between states and noted ‘that's what you need if you want to trade also with foreign countries’.

World Bank Chief Economist also said that a lot of domestic issues that have to be addressed to unleash that potential that has not been utilized now in exports. He said it's not one single issue that can solve.

The CNX Nifty is currently trading at 11604.35, down by 61.60 points or 0.53% after trading in a range of 11549.10 and 11710.30. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 1.39%, Tech Mahindra up by 1.13%, TCS up by 1.05%, Infosys up by 1.02% and Power Grid up by 0.94%. On the flip side, Indiabulls Housing Finance down by 4.70%, Indian Oil Corp. down by 4.07%, Bajaj Finance down by 2.96%, Yes Bank down by 2.64% and Tata Motors down by 2.56% were the top losers.

Asian markets were trading mixed; Jakarta Composite dropped 72.59 points or 1.12% to 6,401.43, Nikkei 225 slipped 45.85 points or 0.21% to 21,761.65, Shanghai Composite declined 9.00 points or 0.28% to 3,237.57 and Straits Times trembled 5.56 points or 0.17% to 3,317.08. On the flip side, KOSPI rose 0.99 points or 0.04% to 2,210.60, Hang Seng increased 92.82 points or 0.31% to 30,029.14 and Taiwan Weighted strengthened 96.19 points or 0.9% to 10,800.57.

All European markets were trading in red; UK’s FTSE 100 fell 12.26 points or 0.16% to 7,434.61, France’s CAC lost 7.37 points or 0.13% to 5,468.83 and Germany’s DAX was down by 56.07 points or 0.47% to 11,953.68.