Markets’ pain deepens in late afternoon deals

Indian equity benchmarks extended their losses in late afternoon session, on account of weak cues from European markets. Heavy selling at Metal, Telecom and Power counters dragged the markets at day’s low points, while Tata Steel performed the worst among all major industry leaders on the BSE. Market participants paid no heed towards the Reserve bank of India (RBI) Governor Shaktikanta Das’ statement that structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth.

On the global front, European markets were trading in red, as Finland's manufacturing sentiment deteriorated in January. The survey data from the Confederation of Finnish Industries showed that the manufacturing confidence index decreased to -8 in January from -5 in December. The reading was well below its long-term average of +1. Asian markets were also trading in red, with most countries in the Asia-Pacific region celebrating the lunar New Year holiday. Most of the regional stock are also closed for the holiday, including South Korea, Malaysia, Singapore, Taiwan, China and Hong Kong, among others.

The BSE Sensex is currently trading at 41216.96, down by 396.23 points or 0.95% after trading in a range of 41189.32 and 41516.27. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in green and red; the BSE Mid cap index was down by 0.23%, while Small cap index was up by 0.08%.

The lone gaining sectoral index on the BSE was Healthcare up by 1.50%, while Metal down by 3.02%, Telecom down by 1.76%, Power down by 1.49%, PSU down by 1.23% and Bankex down by 1.08% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.80%, Tech Mahindra up by 0.93%, Ultratech Cement up by 0.64%, ICICI Bank up by 0.57% and Asian Paints up by 0.44%. On the flip side, Tata Steel down by 3.91%, Indusind Bank down by 3.18%, HDFC Bank down by 2.44%, SBI down by 2.33% and Power Grid down by 2.01% were the top losers.

Meanwhile, in order to provide a durable push to demand and boost growth, the Reserve bank of India (RBI) Governor Shaktikanta Das has said that structural reforms and fiscal measures may have to be continued and further activated.

Das further said that the RBI constantly updates its assessment of the economy based on incoming data and survey-based information juxtaposed with model-based estimates for policy formulation. He also added that this approach helped the RBI to use the policy space opened up by the expected moderation in inflation and act early, recognizing the imminent slow down before it was confirmed by data subsequently.

Besides, RBI Governor said that the government is also focusing on infrastructure spending which will augment the growth potential of the economy. As per the Das, states should also play an important role by enhancing capital expenditure which has a high multiplier effect.

The CNX Nifty is currently trading at 12138.45, down by 109.80 points or 0.90% after trading in a range of 12126.00 and 12216.60. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy’s Lab up by 5.10%, Mahindra & Mahindra up by 1.95%, Cipla up by 1.27%, Tech Mahindra up by 1.07% and BPCL up by 0.85%. On the flip side, Vedanta down by 4.20%, Tata Steel down by 3.98%, JSW Steel down by 3.25%, Indusind Bank down by 3.03% and Hindalco down by 2.99% were the top losers.

Asian markets were trading in red; Nikkei 225 slipped 483.67 points or 2.03% to 23,343.51 and Jakarta Composite lost 79.91 points or 1.28% to 6,164.20.

All European markets were trading in red; UK’s FTSE 100 lost 126.06 points or 1.66% to 7,459.92, France’s CAC slipped 97.47 points or 1.62% to 5,926.79 and Germany’s DAX was down by 201.19 points or 1.48% to 13,375.49.