Indian equity markets continued trading in red with sharp losses after gap down opening this morning following weakness in the global markets. The Sensex was down by 190 points, while the Nifty fell by 63 points. Investors were stick to risk aversion due to increasing worries over Eurozone and disappointing US data, which hurt the sentiment. In currency markets, rupee depreciated against dollar following Asian currencies losses. On the sectoral front, all sectors were trading in red. Automobile, capital goods, metal and realty stocks were mostly down with sharp losses. Information technology, power and bank stocks too were trading notably lower. Meanwhile, airline stocks were rallied on government wordings that foreign direct investment in aviation is in final stages of approval. Jet Airways was up 3%, Kingfisher Airlines rose 2.8% and SpiceJet surged 4%. On the global front, Asian shares were trading with huge losses. Back home, the market breadth favoring negative trend; there were 695 shares on the gaining side against 1,556 shares on the losing side while 93 shares remained unchanged.
The BSE Sensex is currently trading at 15,878.74, down by 191.74 points or 1.19%. The index has touched a high and low of 15,920.90 and 15,809.71 respectively. There were only 3 stocks advancing against 27 declining ones on the index.
The broader indices too continued to reel under pressure; the BSE Mid cap and Small cap indices declined 1.02% and 0.97% respectively.
The major losing sectoral indices on the BSE were, Auto down by 2.76%, CG down by 2.12%, Metal down by 1.77%, Realty down by 1.40% and TECk down by 1.38%, while there was no gainer on the BSE sectoral space.
HUL up by 0.79%, SBI up by 0.59% and NTPC up by 0.49% were the few gainers on the index.
On the flip side, Tata Motors down by 4.76%, Maruti Suzuki down by 3.76%, Sterlite Industries down by 3.09%, Bajaj Auto down by 2.81% and BHEL down by 2.77% were the top losers on the Sensex.
Meanwhile, while making a ground for a ratings upgrade with the Fitch Ratings agency, finance ministry officials said, India's foreign direct investments (FDI) and portfolio inflows remained strong. The rating agency's visit came a day after the Indian rupee plunged to a record low against the US dollar, as risk aversion in global markets added pressure on the currency, along with India's weak current account and fiscal deficits.
Another global ratings agency Standard & Poor's in April this year, slashed India's outlook to negative from stable, quoting its large fiscal deficit and expectations of only meek progress on economic reforms given political constraints and lowering economic growth. Further, Moody's has a Baa3 rating on India, while S&P rates India at BBB-. Both are minimum investment grade ratings and one notch above the junk status.
Further, Finance Minister Pranab Mukherjee has, said, 'the government would initiate austerity measures to deal with the tight fiscal situation and would try to keep subsidies on oil, fertilizer and food within 2% of the GDP'.
The S&P CNX Nifty is currently trading at 4,806.30, lower by 63.90 points or 1.31%. The index has touched a high and low of 4,824.00 and 4,788.95 respectively. There were only 5 stocks advancing against 45 declining ones on the index.
The top gainers of the Nifty were NTPC up by 0.84%, SBI up by 0.61%, HUL up by 0.55%, Power Grid Corporation of India up by 0.43% and Kotak Bank up by 0.09%.
On the flip side, Tata Motors down by 5.11%, Maruti Suzuki down by 3.80%, BHEL down by 3.40%, Siemens down by 3.29% and Bajaj Auto down by 3.19% were the major losers on the index.
All the Asian counters were trading in the red; Shanghai Composite plunged 1.14%, Hang Seng Index got obliterated by 2.75%, KLSE Composite declined 0.86%, Nikkei 225 got pummeled by 2.99%, Straits Times Index plummeted 1.96%, KOSPI Composite Index got battered down by3.40% and Taiwan Weighted slumped 2.79%.
Stock market in Indonesia remained closed on Friday owing to a public holiday.
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