Sensex, Nifty extend losses; broader markets outperform

Indian equity markets extended losses after opening in a negative territory on Monday amid constant selling across the board. The 30-share BSE Sensex declined by 92 points and NSE Nifty fell 29 points, while the broader markets outperformed benchmarks. Investors were trading cautiously on weak global cues and caution ahead of the reporting season seems to be pulling stocks down. Indian rupee depreciated against dollar as US currency gained against other overseas currencies. On sectoral front, oil, realty, capital goods, information technology and bank stocks were mostly trading lower, while FMCG, metal and pharmaceuticals stocks were trading firm. Meanwhile, DLF is trading nearly 5% down, as social activist Arvind Kejriwal accusing the company for favoring Robert Vadra, son-in-law of Congress chief and the UPA Chairperson Sonia Gandhi, with easy loans for some undue gains. In global markets, all Asian shares were trading in red as World Bank slashed its growth forecasts for East Asia, emphasizing worries over the global economic outlook, and also on concern about the coming corporate earnings season. Back home, the market breadth favoring positive trend; there were 1,378 shares on the gaining side against 1,103 shares on the losing side while 96 shares remain unchanged.

The BSE Sensex is currently trading at 18,846.18 down by 92.28 points or 0.49% after trading in a range of 18,969.19 and 18,843.11. There were 11 stocks advancing against 19 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.33% and Small cap index was up by 0.47%.

The top gainers on the BSE sectoral space were, HC up by 1.67%, Metal up by 0.36% and FMCG up by 0.19%. While, Oil & Gas down by 1.34%, Realty down by 1.28%, CG down by 1.21%, IT down by 1.03% and Bankex down by 0.80% were the top losers on the sectoral space.

The top gainers on the Sensex were Sun Pharma up by 3.83%, Cipla up by 1.61%, NTPC up by 1.52%, Sterlite Industries up by 1.44% and Tata Steel up by 1.15%. On the other hand, Reliance down by 2.50%, Wipro down by 2.21%, BHEL down by 2.19%, Tata Power down by 2.07% and Hindalco down by 1.68% were top losers on the Sensex.

Meanwhile, emphasizing the necessity to revitalize the economic growth of the nation, the President Pranab Mukherjee has urged exporters to focus on developing new export markets in the emerging and developing countries where rate of growth in the medium term will be comparatively better than in the developed nations. He pointed out that the nation had achieved better financial growth during 2003-04 to 2007-08, with the backing from diversified export markets of Asia and Africa.

He further emphasized the need to have quality consciousness, service delivery and complete transparency; he advised exporters to maintain high quality of their products as it will reflect not only the image of their company or their brand, but also the image of India as a source of top quality products. He noted that as part of globalization, Euro-zone crisis has caused lower financial growth in India also, like any other nation leaving it with worsening business sentiments, trimmed down investments and exchange rates, volatile stock market and attendant implications for investor confidence.

The slowdown in external demand has led to significant deceleration in the growth of exports, with the outward shipments showing a negative growth since May 2012.He also proposed FIEO and other business organizations along with the Government should aid in exploring new markets and suggested more interactive and coordinated approach to be maintained to ensure high export intensity to improve the current low penetration in overseas markets.

The S&P CNX Nifty is currently trading at 5,717.00, down by 29.95 points or 0.52% after trading in a range of 5,751.85 and 5,715.65. There were 19 stocks advancing against 31 declines on the index.

The top gainers of the Nifty were Sun Pharma up by 4.09%, Cairn up by 2.16%, Bharti Airtel up by 1.62%, Cipla up by 1.50% and Asian Paint up by 1.45%. While, DLF down by 4.90%, Reliance down by 2.58%, BHEL down by 2.39%, Ambuja Cement down by 2.13% and Wipro down by 2.08% were top losers on the index.

Most of the Asian equity indices were trading in red. Shanghai Composite down by 0.82%, Jakarta Composite was down by 0.03%, KLSE Composite was down by 0.16%, Straits Times was down by 0.98%, Hang Seng was down by 0.58%, Kospi Composite was down by 0.67% and Taiwan Weighted was down by 0.97%. 

Markets in Japan remained closed on account of Health-Sports Day.