Benchmarks magnify losses in absence of positive trigger; slip to day’s low

Benchmark equity indices have magnified their losses and slipped to day’s low point on account of relentless selling pressure in absence of any positive catalyst which could take the markets’ higher. Further, mixed regional counterparts also are rendering no support to the ailing equity markets, which are trading downbeat for fifth straight session, with both, Sensex and Nifty, languishing below the crucial 20,700 and 6,200 levels respectively, with cut of around half a percent. Meanwhile, broader indices, much in line with regional counterparts, are exhibiting diverse trend. While, Midcap index has already succumbed to selling pressure and is trading in red with loss of over one tenth of a percent, Smallcap index is holding above in green, with gains of over quarter of a percent.

On the global front, Asian pacific shares are trading on mixed note on prevailing caution ahead China's economic prospects and also traders await economic events in the U.S. with Federal Reserve minutes due Wednesday and a monthly jobs report on Friday.

Closer home, while most of the sectoral indices have slipped in negative terrain, stocks from Capital Goods, HealthCare and Auto counter are showing resilience. Splendid gains of BHEL, which is one of the top gainers of the session, mainly lifted Capital Goods pivotal higher. Additionally, record high levels of Maruti Suzuki stocks too are driving the entire Auto pivotal higher. On the flip side, Metal, Realty, Oil and Gas pivotals are the top laggards of the session. Meanwhile, telecom stocks are hogging some limelight ahead of Telecom Commission‘s meeting today to decide on uniform spectrum usage. The overall market breadth on BSE is in the favour of declines which have outpaced advances in the ratio of 1120:682; while 34 shares remained unchanged.

The BSE Sensex is currently trading at 20680.61, down by 106.69 points or 0.51% after trading in a range of 20,890.48 and 20637.18. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices continued to trade mixed; the BSE Mid cap index was down by 0.19%, while Small cap index up by 0.32%.

The gaining sectoral indices on the BSE were Capital Goods up by 0.82%, Heathcare up by 0.26% and Auto up by 0.08 points. While, Metal down by 1.50%, Realty down by 1.21% Oil and Gas down by 1.17%, PSU down by 1.09% and Bankex down by 1.02% were the top losing indices. 

The top gainers on the Sensex were Maruti Suzuki up by 2.16%, BHEL up by 1.92%, Sun Pharma up by 1.50%, L&T up by 0.92% and Dr Reddy’s Lab up by 0.87%. On the flip side, Axis Bank down by 2.77%, Hindalco Inds down by 2.33%, Tata Steel down by 2.27%, Tata Power down by 2.08% and ONGC down by 1.67%.

Meanwhile, Industry chamber FICCI has unveiled its Economic Agenda for long term growth to bring the economy back to a sustained high growth path. FICCI has underlined the need to strengthen key triggers of growth of enterprises and job creations, as adding 10-12 million jobs annually would require a growth of 8-9% over a long period.

FICCI President Sidharth Birla highlighted that three key tangible macroeconomic indicators such as fiscal deficit, current account deficit and inflation have a bearing on investor perception. Regarding the fiscal deficit, S Birla has stressed that planned capital expenditure should not be compromised for revenue spending. Noting that social spending is a short-term measure for job creation, FICCI President stressed that it is imperative to link social spending to asset creation and skill building to overcome the problem like job creation.

Referring to India’s CAD, the FICCI President underscored that CAD must be brought down and policy interventions are needed to curb imports of natural resources which are available domestically. Furthermore, comprehensive plans for manufacturing competitiveness are also required, he added. Amid declining FDI in the country, India's dependence on FIIs is considerable, therefore, deepening of domestic capital markets is the only lasting solution to improve resilience for unforeseen events. Agricultural production and productivity must be raised to check food prices in order to tackle high inflation, WPI inflation surged to a 14-month high of 7.52 percent in the month of November. Moreover, to improve the business sentiments in the country, FICCI has expressed the need for clarity in policy formulation, time-bound and transparent implementation of policies with minimal discretion and greater certainty in legislative interpretation.   

The CNX Nifty is currently trading at 6,157.35, down by 34.10 points or 0.55% after trading in a range of 6,221.50 and 6,144.75. There were 9 stocks advancing against 41 declining on the index.

The top gainers of the Nifty were BHEL up by 2.22%, Maruti up by 2.10%, Sun Pharma up by 1.47%, L&T up by 1.09% and Dr Reddy’s Lab up by 0.87%. On the flip side, Bank of Baroda down by 2.91%, Axis Bank down by 2.75%, Hindalco Inds down by 2.41%, Tata Steel down by 2.40%  and Tata Power down by 2.08% were the major losers on the index.

The Asian equity indices were trading mixed; Hang Seng up by 0.16%, Straits Times up by 0.25%, KLSE Composite up by 0.13%, Taiwan Weighted up by 0.14% and Seoul Composite up by 0.32%. While, Jakarta Composite down by 0.35%, Shanghai Composite down by 0.24%, and Nikkei 225 down by 0.59%.