Local bourses add losses in early afternoon session

Local equities added losses to continue their weak trade in early afternoon session on account of selling in frontline counters. Dalal Street came under pressure amid losses in Banking, Auto, Metal and Realty stocks. Investor’s sentiment also dented with a private report that a workforce analysis of listed companies reveals that the job loss in public sector was one of the worst in the recent times. In contrast to an increase of 9.2 per cent headcount in private sector, the public sector saw a decline of 2.6 per cent in FY19. Traders were cautious with a private report that Indian retail inflation probably reached a 12-month high in September, but still leaving room for further interest rate cuts because it's expected to remain below the Reserve Bank of India's target. Markets mood continue to remain downbeat with International Monetary Fund (IMF) chief Kristalina Georgieva’s statement that the largest emerging market economies like India are facing an even more pronounced effect of the global downturn. She also warned that the global economy is now witnessing synchronized slowdown which will result in slower growth for 90 percent of the world in 2019.

On the global front, Asian markets were trading mostly in green, but investors moved cautiously as they sifted through conflicting reports about the outlook for upcoming China-US trade talks. Back home, banking stock remained in focus with a private report that with bad loans having been largely recognised, the worst may be over for banks but second quarter earnings could still be muted.

The BSE Sensex is currently trading at 37919.41, down by 258.54 points or 0.68% after trading in a range of 37917.66 and 38130.23. There were 10 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.82%, while Small cap index was down by 0.29%.

The top gaining sectoral indices on the BSE were Telecom up by 3.10%, Energy up by 1.29%, TECK up by 0.60%, Consumer Durables up by 0.27% and IT was up by 0.25%, while Bankex down by 2.28%, Realty down by 1.88%, Metal down by 1.65%, PSU down by 1.27% and Auto was down by 1.26% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 4.41%, Reliance Industries up by 2.25%, Hindustan Unilever up by 1.21%, Infosys up by 0.60% and Asian Paints up by 0.57%. On the flip side, Yes Bank down by 4.17%, Tata Motors - DVR down by 3.83%, Tata Motors down by 3.72%, SBI down by 2.84% and ICICI Bank down by 2.82% were the top losers.

Meanwhile, Defence minister Rajnath Singh has said the government has taken a host of measures to attract investments in the defence manufacturing sector and is ready for further tax rationalisation that may be needed to encourage the 'Make in India' initiative in the sector. He noted that the government has undertaken significant economic reforms to improve the ease of doing business in India and open up the economy for investments.

The minister stated the government has opened up defence sector manufacturing to a large extent under the 'Make in India' initiative. He also highlighted that the government has implemented across the country a single Goods and Services Tax (GST), which is biggest tax reform since independence and has recently reduced corporate tax significantly.

Singh also said India is open to explore opportunities of co-production of high-end defence equipment and seeks collaborations to modernize shipyards and defence platforms by the infusion of technology. He pointed out that French firms can make India its base for production of defence equipment, not only for India's large market but also for export to other countries. Stressing on India's substantial requirements of aero engines, both in civil and military domains, he said the country is open to explore an aero engine complex on a government-to-government basis. 

The CNX Nifty is currently trading at 11232.05, down by 81.25 points or 0.72% after trading in a range of 11224.35 and 11293.35. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Bharti Airtel up by 4.54%, Grasim Industries up by 2.62%, Reliance Industries up by 2.21%, Hindustan Unilever up by 1.07% and Infosys up by 0.57%. On the flip side, Yes Bank down by 4.28%, GAIL India down by 4.01%, Tata Motors down by 3.64%, ICICI Bank down by 3.00% and SBI down by 2.93% were the top losers.

Asian markets were mostly trading in green; Hang Seng increased 99.86 points or 0.39% to 25,782.67, Nikkei 225 surged 73.95 points or 0.34% to 21,530.33, Shanghai Composite gained 12.19 points or 0.42% to 2,937.05 and Jakarta Composite soared 3.26 points or 0.05% to 6,032.42. On the flip side, Straits Times trembled 2.38 points or 0.08% to 3,087.52 and KOSPI was down by 7.51 points or 0.37% to 2,038.74.