Markets remain below neutral lines

Indian equities continued to trade below their neutral lines in late afternoon session, despite firm cues from European markets. Sentiments remained negative as the Reserve Bank sharply cut its economic growth projection for this fiscal to 6.1 percent from 6.9 percent earlier, but expressed hope that the growth will recover in the second half of 2019-20. The central bank's estimates come in the wake of GDP growth sliding to a six-year low of 5 percent in the June quarter, on a massive slowdown in consumption and private sector investments.

On the global front, European markets were trading in green, as Russia's service sector expanded at the fastest pace in six months in September, supported by new order growth and a rebound in hiring. The survey data from IHS Markit showed that the services Purchasing Managers' Index increased to 53.6 in September from 52.1 in August. Any score above 50 indicates expansion. Asian markets were trading mixed.

Back home, power and coal stocks were in watch, as the government launched a portal for transparency and better coordination among stakeholders, including Coal India, Indian Railways, power utilities and, ministries of coal and power, for coal supplies to power plants.

The BSE Sensex is currently trading at 37750.96, down by 355.91 points or 0.93% after trading in a range of 37699.92 and 38403.54. There were 13 stocks advancing against 18 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 0.49%.

The only gaining sectoral indices on the BSE were IT up by 0.89% and TECK up by 0.55%, while Bankex down by 2.39%, Consumer Durables down by 1.88%, Realty down by 1.63%, Capital Goods down by 1.61% and FMCG down by 1.42% were the top losing indices on BSE.

The top gainers on the Sensex were Yes Bank up by 1.29%, Tech Mahindra up by 1.26%, Infosys up by 1.13%, TCS up by 1.08% and Mahindra & Mahindra up by 0.96%. On the flip side, Kotak Mahindra Bank down by 3.43%, ICICI Bank down by 2.84%, HDFC Bank down by 2.75%, Axis Bank down by 2.19% and Larsen & Toubro down by 2.14% were the top losers.

Meanwhile, India’s services sector activity contracted in the month of September 2019, on the back of lackluster client demand, competitive pressures and challenging market conditions. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index eased to 48.7 in September from 52.4 in August. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - also fell to 49.8 in September as against 52.6 in August.

As per the report, the Services Business Activity Index posted inside contraction territory for the first time in three months. New work intakes contracted in September, following an 18-month sequence of expansion. However, Indian services companies were able to secure new work from external markets. The increase in international orders was the seventh in consecutive months, with growth accelerating from August.

On the price front, input prices increased further, on account of higher food, medicine and transport costs. But, the rate of inflation eased to the weakest in over two-and-a-half years and was negligible in the context of historical survey data. Further, prices charged for the provision of services continued to increase in September. The rate of inflation was moderate and little-changed from August, but outpaced that seen for input costs.

The CNX Nifty is currently trading at 11200.95, down by 113.05 points or 1.00% after trading in a range of 11182.75 and 11400.30. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Cipla up by 1.34%, Tech Mahindra up by 1.30%, Wipro up by 1.14%, Infosys up by 1.07% and TCS up by 1.04%. On the flip side, Ultratech Cement down by 3.63%, Titan down by 3.36%, Kotak Mahindra Bank down by 3.30%, Zee Entertainment down by 3.18% and BPCL down by 2.93% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 68.46 points or 0.32% to 21,410.20, Jakarta Composite soared 20.74 points or 0.34% to 6,059.27 and Taiwan Weighted was strengthened 18.57 points or 0.17% to 10,894.48. On the flip side, KOSPI fell 11.22 points or 0.55% to 2,020.69, Straits Times trembled 15.27 points or 0.49% to 3,072.70 and Hang Seng was down 374.94 points or 1.44% to 25,735.37.

European markets were trading mostly in green; FTSE gained 28.97 points or 0.41% to 7,106.61 and CAC rose 8.32 points or 0.15% to 5,447.09, while DAX was down by 14.28 points or 0.12% to 11,910.97.