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Markets continue to sulk in red

Indian bourses extended losses and continued to trade in deep red in the afternoon session on sustained profit-booking activities by market-participants by both funds and retail investors amidst negative global set-up. Bleeding with losses of around 1% each, both Sensex and Nifty were sulking below crucial 46,900 and 13,850 levels respectively. Meanwhile, broader indices also continuing to reel under pressure. On the global front, all Asian markets were under pressure following a sharp Wall Street decline amid deepening concerns about stretched valuations in equities markets. Adding to the Asian market worries was the outcome of Federal Reserve's policy meeting. While the Fed kept settings unchanged as expected, policymakers flagged a concerning slowdown in the pace of the economic recovery.

Closer home, stocks from realty, information technology (IT) and TECK counters were the prominent losers of the session. On the flip side, stocks from oil and gas, auto and energy counters topping the gainers list on BSE. In scrip specific developments, Unichem Laboratories surged on getting approval for Zonisamide Capsules, while United Spirits declined even as reporting 22% rise in Q3 consolidated net profit.  

The BSE Sensex is currently trading at 46880.75, down by 529.18 points or 1.12% after trading in a range of 46821.21 and 47172.02. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.33%, while Small cap index down by 0.16%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.99%, Auto up by 0.60%, Energy up by 0.52%, Consumer Durables up by 0.50% and Industrials was up by 0.28%, while Realty down by 1.60%, IT down by 1.50%, TECK down by 1.21%, Bankex down by 0.89% and FMCG was down by 0.86% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 4.85%, ONGC up by 1.06%, Maruti Suzuki up by 0.80%, Sun Pharma up by 0.75% and Reliance Industries was up by 0.36%. On the flip side, HDFC Bank down by 3.84%, Kotak Mahindra Bank down by 3.16%, Power Grid Corporation down by 2.83%, Hindustan Unilever down by 2.50% and Tech Mahindra was down by 2.33% were the top losers.

Meanwhile, International Monetary Fund’s (IMF’s) Chief Economist -- Gita Gopinath has said India's recently-enacted agri laws have the potential to increase farmers' income, but there is a need to provide a social safety net to the vulnerable cultivators. Indian agriculture is in need of reforms. She added that there are multiple areas where the reforms are needed, including infrastructure. The three agri laws, enacted in September last year, have been projected by the Indian government as major reforms in the agriculture sector that will remove middlemen and allow farmers to sell their produce anywhere in the country.

Gopinath said these particular farm laws were in the area of marketing. It was widening the market for farmers. Being able to sell to multiple outlets besides the Mandis without having to pay a tax. And this had the potential to raise, in our view, farmers' incomes. That said, every time a reform is put in place, there are transition costs. One has to make sure and pay close attention that it's not harming vulnerable farmers, to make sure that the social safety net is provided. Clearly there is a discussion right now and we'll see what comes out if it.

Thousands of farmers in India, mostly from Punjab, Haryana and western Uttar Pradesh, have been camping at several Delhi border points since November 28 last year, demanding a repeal of the farm laws and a legal guarantee on Minimum Support Price (MSP) for their crops. So far, 11 rounds of talks have taken place between the government and farmer leaders with both sides hardening their positions. In the last round of talks, the government offered to suspend the laws for 1-1.5 years and form a joint committee to find solutions, in return for protesting farmers going back to their respective homes from Delhi borders.

The CNX Nifty is currently trading at 13831.15, down by 136.35 points or 0.98% after trading in a range of 13794.20 and 13898.25. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 4.96%, BPCL up by 1.84%, Hero MotoCorp up by 1.44%, Tata Motors up by 1.10% and Indian Oil Corporation was up by 0.88%. On the flip side, HDFC Bank down by 3.97%, Kotak Mahindra Bank down by 3.35%, Wipro down by 3.19%, Power Grid Corporation down by 2.86% and Tech Mahindra was down by 2.62% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 437.79 points or 1.53% to 28,197.42, Hang Seng decreased 633.92 points or 2.16% to 28,663.61, Taiwan Weighted dropped 285.57 points or 1.82% to 15,415.88, Straits Times trembled 32.33 points or 1.09% to 2,926.30, KOSPI fell 55.04 points or 1.76% to 3,067.52, Shanghai Composite declined 58.49 points or 1.64% to 3,514.85 and Jakarta Composite was down by 99.21 points or 1.62% to 6,009.96.

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