Benchmarks continue weak trade; rate-sensitive stocks major laggards

Indian equity markets slipped into red and continued trading lower amid volatile trade. The Sensex slipped 49.63 points, while the Nifty went down 22.30 points. Investors’ sentiments were dampened after RBI Governor's hawkish statement that there was no room for fiscal and monetary stimulus, which reduced rate cut hopes and pushed up bond yields. In currency markets, rupee continued its losing streak against US dollar amid increasing dollar demand. On sectoral front, rate sensitive stocks were trading lower. Despite recent price hikes, cement stocks were trading flat to negative, while, shares of software companies fell on profit-booking after stronger-than-expected earnings boosted the shares in recent sessions. In global markets, Asian stock markets mostly trading in red on Wednesday, with Japanese stocks skidding on a firmer yen and shares in Hong Kong weakening as financials lost ground. Back home, the market breadth favoring negative trend; there were 1,044 shares on the gaining side against 1,417 shares on the losing side while 122 shares remain unchanged.

The BSE Sensex is currently trading at 19,937.19, down by 49.63 points or 0.25%, after trading in a range of 20,009.36 and 19,919.57. There were 10 stocks advancing against 20 declines on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.19% and Small cap index was down by 0.12%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.82%, Realty up by 0.63%, Healthcare up by 0.41%, Consumer Durables up by 0.35% and Capital Goods up by 0.11%. While, Auto down by 0.91%, TECk down by 0.73%, Bankex down by 0.42%, IT down by 0.62% and Metal down by 0.48% were the top losers on the index.

The top gainers on the Sensex were RIL up by 2.18%, Dr Reddys Lab up by 1.79%, Bajaj Auto up by 1.25%, Sterlite Industries up by 1.12% and Cipla up by 0.98%.

On the flip side, Tata Motors was down by 2.04%, Jindal Steel was down by 1.84%, Mahindra & Mahindra was down by 1.83%, Hindalco was down by 1.36% and Tata Power was down by 1.07% were the top losers on the Sensex.

Meanwhile, in line with firming raw material cost, petrol price was hiked by about 35 paise per litre. As per the revision, petrol will now cost Rs 67.56 per litre in Delhi with effect from midnight January 15. The petrol prices was cut twice in October and November - first by 56 paise and then by 95 paise per litre.

Petrol prices vary from city to city due to differential local sales tax or VAT rates. This is the first revision in rates of petrol, which was deregulated by the government, since November.

The S&P CNX Nifty is currently trading at 6,034.30 down by 22.30 points or 0.97% after trading in a range of 6,055.95 and 6,031.25. There were 18 stocks advancing against 32 declines on the index.

The top gainers of the Nifty were HCL Tech up by 2.45%, Reliance up by 2.18%, Dr Reddys Lab up by 1.67%, Ranbaxy up by 1.37% and Bajaj Auto up by 1.23%.

On the flip side, Tata Motors down by 2.32%, JP Associate down by 2.28%, Jindal Steel down by 1.93%, Mahindra & Mahindra down by 1.83% and Cairn down by 1.59%, were the major losers on the index.

Most of the Asian equity indices were trading in the red; Shanghai Composite down by 1.52%, Hang Seng declined 0.62%, Jakarta Composite down by 0.11%, KLSE Composite down by 0.29%, Nikkei 225 was down by 2.56%, KOSPI Composite decreased 0.32% and Taiwan Weighted was down by 0.83%. On the flip side, Straits Times up by 0.03%.