Markets extend early losses; trade at intra-day low level in afternoon session

Indian equity benchmarks extended their early losses and were trading their intra-day low level in afternoon session on account of profit booking in frontline blue chip stocks such as TCS, SSLT and Wipro stocks. Investors’ sentiments got dampened after The Reserve Bank of India (RBI) Governor Raghuram Rajan attributed that current economic woes were due to stimulus provided by the Government to tide over the global crisis of 2008. Further, the sentiments also remained dented as the HSBC sees government breaching its FY14 fiscal deficit target of 4.8% on account of slower revenue and higher expenditure in the first half of the fiscal. Power was the top losing indices on BSE down by nearly 4.33% followed by Capital Goods and Banking stocks both up by over 1.70%. Meanwhile, IT stocks made a comeback after witnessing selling pressure in the past few sessions. On stock specific movement, TCS, SSLT and Wipro were trading up by over 1.00%, while, NTPC, BHEL and L&T were trading down by over 4 % on BSE. NTPC is the top Sensex loser today, down by around 10%, after the Central Electricity Regulatory Commission (CERC) released draft regulations that will decide the multi-year power tariffs for 2014-2019. 

On global front, Asian markets were trading in green with Nikkei 225 down by 0.25, Taiwan Weighted down by 0.01%, while Jakarta Composite up by 1.04%. Back home, the NSE Nifty and BSE Sensex were trading up their psychological 6,300 and 21,000 levels respectively. The market breadth on BSE was negative, out of 2,082 stocks traded, 766 stocks advanced, while 1,187 stocks declined on the BSE.  

The BSE Sensex is currently trading at 21,241.23 down by 85.19 points or 0.40% after trading in a range of 21,327.75 and 21,218.71. There were 12 stocks advancing against only 18 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.22%, while Small cap index down by 0.43%.

The gaining sectoral indices on the BSE were IT up by 1.74%, Teck up by 1.42%, FMCG up by 0.43%, Helathcare up by 0.15% and Auto up by 0.13%. While, Power down by 4.33%,  Capital Goods down by 3.46%, Bankex down by 1.75%, Realty down by 1.14%, and Oil and Gas down by 0.11% were the losing indices on BSE.

The top gainers on the Sensex were TCS up by 3.31%, Wipro up by 1.84%, SSLT up by 1.02%, ITC up by 0.97% and Bajaj Auto up by 0.97%. On the flip side, NTPC down by 10.11%, BHEL down by 5.42%, L&T down by 4.20%, ICICI Bank down by 3% and Tata Power down by 1.85%.

Meanwhile, as per the Paris-based think tank Organisation for Economic Cooperation and Development (OECD), a grouping of mostly developed nations, Indian economy is witnessing tentative positive growth momentum. OECD highlighted that Composite Leading Indicators (CLIs), designed to anticipate turning points in economic activity, remained unchanged at 97.6 in month of October as compared to the previous month.

The OECD further reported that besides India, China and Russia too are showing similar trends. Meanwhile, among the emerging economies, the CLIs point to growth around trend in Brazil. Referring to the other nations, Paris-based think tank noted that CLI for the US and Canada indicates a positive change in momentum. In the European region, CLIs continue to indicate a positive growth trends for France and Italy.

India economy recorded a higher-than-expected economic growth of 4.8 percent in the September quarter on the back of better agriculture and factory output. In the April-June quarter, GDP expansion had touched a four-year low of 4.4 percent. Meanwhile, OECD had expected that Indian economy's growth to improve marginally with its GDP at market price projected to expand by 3.4 percent in the current financial year from 3.3 percent in the previous fiscal citing that rupee depreciation is putting pressures on inflation, public finances, corporate and banks with high external debt exposure. On global front, it expected the pace of the global recovery will remain weak due to the worsened outlook for some emerging economies. The OECD projects world economy to grow 2.7 percent this year and accelerate to 3.6 percent in 2014.

The CNX Nifty is currently trading at 6,328 down by 35.90 points or 0.56% after trading in a range of 6,362.25 and 6,322.45. There were 15 stocks advancing against 35 declining on the index.

The top gainers of the Nifty were TCS up by 3.15%, Wipro up by 1.95%, Lupin up by 1.65%, HCL Tech up by 1.25% and Bajaj Auto up by 1.06%. On the flip side, NTPC down by 10.17%, BHEL down by 5.51%, L&T down by 4.08%, Power Grid down by 3.85% and ICICI Bank down by 3.12% were the major losers on the index.

The Asian equity indices were trading mixed; Seoul Composite down by 0.35%, Hang Seng down by 0. 18% and Straits Times down by 0.47%, Nikkei 225 down by 0.25 and Taiwan Weighted down by 0.01%. While, Jakarta Composite up by 1.04%, Shanghai Composite up by 0.15% and KLSE Composite up by 0.21%.