Markets trade at intra-day low level amid profit booking

Indian equity markets continued weak trade and reached at their intra-day low level in the afternoon session amid profit booking in IT, service and energy stocks. The weakness in domestic currency against dollar also added to the pessimistic sentiments. Further the investors’ sentiments were also dented by the Global financial services major HSBC, which slashed India's GDP growth forecast for the current financial year to 4% from 5.5% earlier, citing chances of economic uncertainty weighing on the growth forecast in the coming months. Moreover, selling was also witnessed in banking, PSE and pharma stocks. On stock specific movement, BHEL, Tata Motors and Coal India were trading over 2 percent higher, while, HDFC and Hero Moto Corp were trading over 3 percent lower on BSE. On global front, most of the Asian markets were trading in green as upbeat factory data from around the globe powered Asian markets. Back home, the market breadth was negative. Out of 2,020 stocks traded, 875 stocks advanced while 1,013 stocks declined on the BSE.    

The BSE Sensex is currently trading at 18,780.12 down by 106.01 points or 0.56% after trading in a range of 19007.31 and 18,684.47. There were only 12 stocks advancing against 18 declines on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.05%, while Small cap index also up by 0.27%.

The top gaining sectoral indices on the BSE were, PSU up by 0.78%, Auto up by 0.76%, Realty up by 0.47% and Metal up by 0.39%. While, Bankex down by 1.27%, Oil and Gas down by 0.53%, consumer Durables down by 0.31% and IT down by 0.18 % were the only loser indices on the BSE.

The top gainers on the Sensex were, BHEL up by 3.60%, Tata Motors up by 3.57%, Coal India up by 2.40%, ONGC up by 2.03% and Jindal Steel up by 1.54%. On the flip side, HDFC down by 3.83%, Hero Moto Corp down by 3.64%, HDFC Bank down by 1.83%, Reliance down by 1.73% and ICICI Bank down by 1.37% were the top losers on the Sensex.

Meanwhile, global financial services major HSBC has slashed India's GDP growth forecast for the current financial year to 4% from 5.5% earlier, citing chances of economic uncertainty weighing on the growth forecast in the coming months. According to the global financial services major, tighter financial conditions and higher macroeconomic uncertainty, could lead to slow growth in the near future.

Going by the official figures, the country’s economic growth in the first quarter of the current fiscal slid to dismal 4.4%, the lowest in past several years, pulled down by drop in mining and manufacturing output. HSBC, however, believes the slowdown to prolong, with leading indicators suggesting that the country’s growth momentum could ease further during the July-September quarter in both manufacturing and services sector.

Further, HSBC in its reports, has highlighted that factors like RBI’s currency stabilization measures and heightened macroeconomic uncertainty is making consumers and businesses more cautious about spending.  It has anticipated pressure on growth momentum likely to pose a greater challenge for the policy makers, which are struggling to stabilize the falling Indian currency, which keeps scaling fresh historic low levels.

However, the financial services major expects growth to show 'faint' signs of recovery during the final quarter of the fiscal year as macroeconomic uncertainties recede somewhat and confidence reluctantly recovers. Nevertheless as per HSBC, 'the outlook for India is still tainted with downside risks given the lingering macroeconomic uncertainties and the possibility that politics could get in the way of meaningful progress on structural reform'.

Adding to the headache of policymakers and government, HSBC is not the only foreign agency, which has slashes growth forecast for Indian economy. CLSA, Nomura too have downgraded their gross domestic product (GDP) growth estimates for India after the economy grew lower-than-expected in the June quarter.

The CNX Nifty is currently trading at 5,511.50 down by 39.25 points or 0.71% after trading in a range of 5,580.95 and 5,482.30. There were 18 stocks advancing against 32 declines on the index.

The top gainers of the Nifty were Tata motors up by 3.74%, BHEL up by 3.72%, Lupin up by 2.71%, Coal India up by 2.29% and ONGC up by 2.15%. On the flip side, HDFC down by 4.21%, Hero Moto Corp down by 3.47%, Indusind bank down by 3.04%, Asian paints down by 2.58% and HDFC Bank down by 2.04% were the major losers on the index.

The most of the Asian equity indices were trading in green; KLSE Composite up by 0.42%, Seoul Composite up by 0.46%, Jakarta Composite up by 1.63%, Taiwan Weighted up by 0.62%,  Shanghai Composite up by 1.08%, Hang Seng up by 1.12% and Nikkei 225 was up by 2.90%. While, Straits Times down by 0.04%.