Benchmarks extend early losses: trade at intra-day low level

Indian equity benchmarks extend early losses to their intra-day low level in afternoon session amid selling witnessed in frontline blue chip stocks such as BHEL, ICICI Bank and Jindal Steel. Rate sensitive ssectors such as Bankex, Capital Goods and Realty indices were down over 1% on concerns that the Reserve Bank of India is likely to hike the repo rate during its upcoming monetary policy review after a sharp spike in retail inflation. Investors’ sentiments also remained subdued after the Index of Industrial Production (IIP) contracted by 1.8 percent in the month of October. Further, depreciation in rupee value against the dollar also added to the pessimistic sentiments. In stock specific movement, BHEL, ICICI Bank and Jindal Steel were trading down by over 2.00%, while, Tata Motors, Coal India, Bharti Airtel were trading up by over 1% on BSE. Tata Motors is trading higher by 2.5% on value buying, after falling nearly 8% in past two trading sessions, as the company said that its luxury unit Jaguar Land Rover (JLR) would increase its capital spending for the financial year 2015. Among other stocks, Wockhardt dipped 4% to nearly Rs 362, its lowest level since August, after the US Food and Drug Administration (FDA) imposed an import alert on its manufacturing unit at Chikalthana, Aurangabad, in Maharashtra.

On global front, Asian markets were trading mixed with Nikkei 225 up by 0.38%, while, Shanghai Composite down by 0.25%. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 6,200 and 20,000 levels respectively. The market breadth on BSE was negative, out of 2,071 stocks traded, 696 stocks advanced, while 1,252 stocks declined on the BSE. 

The BSE Sensex is currently trading at 20,770.61 down by 155 points or 0.74% after trading in a range of 20,867.17 and 20,747.40. There were only 6 stocks advancing against only 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.52%, while Small cap index down by 0.19%.

The gaining sectoral indices on the BSE were Auto up by 0.25%, Teck up by 0.11%, IT up by 0.08%. While, Bankex down by 1.72%, Power down by 1.57%, Capital Goods down by 1.48%, Metal down by 1.05% and oil and gas down by 0.88% were the losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 2.61%, Coal India up by 1.33%, Bharti Airtel up by 1.16%, Wipro up by 1.06% and Dr Reddy’s Lab up by 0.68%. On the flip side, BHEL down by 3.28%, ICICI Bank down by 3.03%, Jindal Steel down by 2.48%, SSLT down by 2.34% and Tata Power down by 2.24%.

Meanwhile, in order to efficiently track fund flow under the various government schemes, the cabinet has approved Central Plan Scheme Monitoring System, which will set up an online financial management information and decision support system for tracking funds.

The Central Plan Scheme Monitoring System will be rolled out over a period of four years till 2017 at a total outlay of Rs 1,080 crore and will link the financial networks of central, state governments and the agencies of the state governments.

Further, new system will also provide real time reporting of expenditure at all levels of programme implementation through treasury and bank interface. The plan monitoring organisation structure will comprise the Project Implementation Committee (PIC) at the apex level, Central Project Management Unit (CPMU) at the centre, State Project Management Unit (SPMU) at state level and and District Project Management Units (DPMU) at the state and district levels.

In a separate development, the government has also approved the proposed Draft Regulatory Reform Bill, 2013 which aims to make regulators across key infrastructure sectors accountable to the Parliament besides giving them power of licensing. The draft bill will apply to key sectors such as electricity, oil and gas, coal, telecommunications and internet, among others.

The CNX Nifty is currently trading at 6,183.80 down by 53.25 points or 0.85% after trading in a range of 6,208.60 and 6,177.50. There were 8 stocks advancing against 42 declining on the index.

The top gainers of the Nifty were Tata Motors up by 2.65%, Coal India up by 1.39%, Wipro up by 1.19%, Bharti Airtel up by 1.16% and Dr Redy’s lab up by 0.70%. On the flip side, JP Associate down by 3.22%, BHEL down by 3.29%, ICICI Bank down by 3.13%, Indisind Bank down by 2.91% and BPCL down by 2.81% were the major losers on the index.

The Asian equity indices were trading mixed; Hang Seng up by 0.01%, Nikkei 225 up by 0.38% and Taiwan Weighted up by 0.19% and KLSE Composite up by 0.48%. While, Seoul Composite down by 0.26%, Straits Times down by 0.02%, Jakarta Composite down by 0.24% and Shanghai Composite down by 0.25%.