Coal India outperforms in a falling market

10 out of 12 sectoral indices are trading in red with BSE IT index down 1.6%

Markets have extended losses on the last trading session of the truncated week as investors remain cautious on the back of disappointing macroeconomic numbers with industrial growth falling to a four-month low of 3.6 per cent in September and the Consumer Price Index-based (CPI) inflation for October rising to five per cent - the highest in four months.

Meanwhile, losses among the global peers amid sharp decline in the commodity prices and fear of an interest rate hike in the month of December dampened the sentiments.

At 12 PM, the Sensex was at 25,601 levels, down by 266 points while Nifty was at 7,750 levels, down by 78 points.

The broader markets are in line with BSE Midcap and Smallcap indices down 1% each. The market breadth is extremely weak with 1,573 declines against 680 advances on the BSE.

MACRO-ECONOMIC DATA

The annual industrial output grew at a slower-than-expected pace of 3.6% in September, dampened by a slower expansion in the mining sector.

Also, the retail inflation climbed to a four-month high in October as food prices escalated on supply deficiency in pulses.

Consumer price index based inflation, the primary gauge of central bank, rose to 5% in October versus 4.41% in the previous month

STOCK TRENDS

Shares of interest rate-sensitive sectors such as banking, real estate and autos are trading lower on the back of disappointing macroeconomic numbers as investors become cautious and focus on the tone of the central bank at a time when industrial growth fell to a four-month low of 3.6 per cent in September and the CPI inflation for October rose to five per cent - the highest in four months. The fifth bi-monthly monetary policy of the RBI is scheduled on December 1, 2015.

ICICI Bank, IndusInd Bank, Axis Bank, Punjab National Bank, HDFC Bank, Bank of Baroda, SBI and Yes Bank from banking, Tata Motors, Exide Industries, Hewro Motocorp, MRF, Bharat Forge, M&M, Eicher Motors, M&M, Ashok Leyland and Motherson Sumi Systems from auto and Oberoi Realty, Unitech, Pheonix, DLF, Mahindra Life, Indiabulls Real Estate and Godrej Properties from the real estate sector have declined between 2%-10% on the Bombay Stock Exchange (BSE).

Oil prices tumbled accelerating a slump that threatens to test new six-and-a-half year lows, with traders unnerved by a persistent rise in US stockpiles and a downbeat forecast for next year. RIL and ONGC have dropped between 0.5-3.5%.

A sharp plunge in the commodity prices hurth the metal pack. Vedanta and Hindalco have dropped between 1.7-4%.

A rebound in the rupee has caused a shadow on the export oriented stocks. TCS, Infosys, Wipro from the IT pack shed between 1-3% and Lupin, Dr Reddy’s Lab and Sun Pharma from the healthcare segment lost between 0.3-2.5%.

Shares of Tata Steel have inched up after the company received green nod for expansion as well as setting up of two units at its Joda plant in Keonjhar district, Odisha, entailing an investment of over Rs 185 crore.

State-run Coal India is trading higher by 2.3% after company invited bids from international companies in order to establish a washery in Jharkand. 

Bajaj Auto which inched up on slew of recent launches have accelerated the demand for motorcycles has pared gains and is trading 1% lower.

Shares of low cost airline SpiceJet have dipped 4% to Rs 48 on the BSE after the company reported a 67% sequential drop in the quarterly profit at Rs 24 crore in the September quarter as against Rs 72 crore in the June quarter.