Markets slip to day’s lowest point on relentless selling pressure; November trade data overlooked

Relentless selling pressure at Indian equity markets, have dragged the benchmark equity indices today’s lowest point despite the narrower November trade deficit data amidst mostly negative regional counterparts. On the macro-front, in positive news, India’s import hit the lowest level in four years, by 16.37% annually to $33.8 billion in November, leaving narrower trade deficit of $9.22 billion as against $17.2 billion deficit in November 2012, as per the latest data released by the Ministry of Commerce and Industry. However, investors failed to draw a heart from this data as country’s exports grew by 5.86% year-on-year in November to $24.6 billion and cumulatively rose by 6.27% to $203.98 billion in the year through November.

Prevailing caution ahead of other crucial macro-economic data, viz, October IIP, November CPI data, to be released tomorrow, is mainly dissuading investors from taking any positions into risk equities. Street is widely expecting India’s inflation to remain close to 9-month highs in November putting further pressure on the central bank to follow up on its back-to-back interest rate hikes despite slowing economic growth. Nevertheless, the trade also took a turn for the worse after S&P underscored that India’s sovereign rating may come under pressure if general elections due by May next year end up with a hung parliament or with a government unable to push through reforms. Sensex and Nifty, were trading below the crucial 21,200 and 6,300 levels respectively, with loss of close to 3/ 4 of a percent. Sectorally, only Fast moving consumer Goods resisted the selling pressure, while Oil & Gas, Capital Goods and Banking counters were the top losers. The market breadth on BSE was negative, out of 2298 stocks traded, 924 stocks advanced, while 1235 stocks declined on the BSE.  

The BSE Sensex is currently trading at 21103.29 down by 151.97 points or 0.71% after trading in a range of 21200.51 and 21088.42. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap and Small cap indices down by 0.31% and 0.13% respectively. 

The only gaining sectoral index on the BSE were FMCG up by 0.36%, While, Oil and Gas down by 1.50%, Capital Goods down by 1.46%, Bankex down by 1.26%, PSU down by 1.20%, and Realty down by 1.08% were the losing indices on BSE.

The top gainers on the Sensex were NTPC up by 2.94%, Jindal Steel up by 1.81%, ITC up by 0.60%, Maruti Suzuki up by 0.56% and Bajaj Auto up by 0.54%. On the flip side, ONGC  down by 3.00%, Tata Motors down by 2.56%, BHEL down by 2.14%, SBI down by 2.14%, and Gail India down by 2.13%.

Meanwhile,in a positive news, India’s imports fell the most in four years, by 16.37% annually to $33.8 billion in November, leaving narrower trade deficit of $9.22 billion as against $17.2 billion deficit in November 2012, as per the latest data released by the Ministry of Commerce and Industry. Cumulatively, for the April-November period, the trade balance recorded a deficit of $99.9 billion. While, imports cumulatively declined by just 5.39% at $303.89 billion during this period.

Country’s exports grew by 5.86% year-on-year in November to $24.6 billion and cumulatively rose by 6.27% to $203.98 billion in the year through November.

The sharp slide in country’s import was mainly on account of decline in gold and silver imports sharply to $ 1 billion in November from $ 5.4 billion a year ago. Additionally, Oil imports during November, 2013 were valued at $12.96 billion, which was 1.1% lower than oil imports valued at $13.10 billion in the corresponding period last year.

Gold imports have been hit this year after the country took slew of measures to curb imports of the yellow metal, including imposing a record 10% import duty and requiring that 20% of imports be re-exported.

The CNX Nifty is currently trading at 6,287.00, down by 48.85 points or 0.72% after trading in a range of 6,313.25 and 6,282.15. There were 12 stocks advancing against 38 declining on the index.

The top gainers of the Nifty were NTPC up by 2.87%, Jindal Steel up by 2.04%, HCL Tech up by 1.50%, Cairn up by 0.71% and ITC up by 0.68%. On the flip side, ONGC down by 3.15%, Induaind Bank down by 2.83%, BPCL down by 2.82%, Tata Motors down by 2.70% and DLF down by 2.46% were the major losers on the index.

The Asian equity indices were trading in red; Seoul Composite down by 1.49%, Hang Seng down by 1.50%, Straits Times down by 0.57%, Nikkei 225 down by 0.62%, Taiwan Weighted down by 0.11%, Jakarta Composite down by 0.67%, Shanghai Composite down by 0.78% and KLSE Composite down by 0.09%.