Markets at day's low; Global stocks lose sheen

Top 5 losers on the Sensex are Tata Steel, Vedanta, Hindalco, L&T and Tata Motors down between 2.5-4.5%

Markets have slumped further in the late trades owing to selling in financials and Index heavyweights including L&T and Tata Motors. Meanwhile, weakness in the global peers ahead of the US FOMC meet continues to weigh on the bourses.

At 2PM, the Sensex is down 201 points at 25,655 and the Nifty has shed 68 points to trade at 7,802

 Top 5 losers on the Sensex are Tata Steel, Vedanta, Hindalco, L&T and Tata Motors down between 2.5-4.5%.

European markets have erased their early gains and are trading weak amid a sell-off in Asian peers as investors remain wary ahead of the US FOMC meet. FTSE 100, CAC 40 and DAX are trading lower between 0.1-1%.
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Markets have trimmed losses but still continue to reel under pressure dragged down by metal, capital goods and consumer durables shares. Caution has prevailed across the board ahead of the 2 day FOMC meet, starting tomorrow.

However, owing to favourable macro-economic data, calls of a rate-cut by the central bank have surfaced back.

At 1:30 PM, the Sensex was lower by 58 points at 25,799 and the Nifty slipped 25 points at 7,847. The broader markets are in tandem with the benchmark indices- BSE Midcap and Smallcap indices are down 0.2-0.4%. Markets breadth is negative on the BSE with 1,049 shares advancing and 1,312 shares declining.

On the currency front, the Indian rupee has lost ground and was trading at 66.43, depreciating by 10 paise against the greenback on sustained bouts of dollar demand from banks and importers amid weakness in the local equities. Meanwhile, possibility of a Fed rate hike in the US FOMC meet has fuelled the decline.

MACRO-ECONOMIC DATA

Inflation based on the consumer price index (CPI) declined to a nine-month low of 3.66 per cent in August from 3.69 per cent in July, but the rate of food price rise went up to 2.20 per cent from 2.15 per cent.

Wholesale price index for the month of August has contracted further to 4.95% The government is scheduled to unveil the consumer price index (CPI) data for the month of August 2015 after market hours today.

The IIP numbers that were announced on Friday post market hours showed that the industrial output grew at 4.2% in July thus indicating a revival in Indian economy.

SECTORS & STOCKS

Sectorally, BSE Metal, Consumer Durables, and Capital Goods indices are trading lower by 1% followed by BSE Auto index, down nearly 1%.

Metal stocks have lost sheen on account of not so favourable Chinese investment and factory output in August, thus raising concerns over the growth of world’s second largest economy, China. Tata Steel, Hindalco and Vedanta are trading lower between 2-4%

FMCG shares are gaining on account of cooling off of CPI numbers. ITC and HUL are trading up by 0.5% each.

Banking and financial shares are under pressure ahead of the FOMC meet. Axis bank, HDFC twins, ICICI Bank, are all down between 0.1-1% each

Maruti Suzuki India has gained 1% after the Reserve Bank of India (RBI) allowed foreign investors to invest up to 40% of the paid-up capital in the company under the portfolio investment scheme.

Among other gainers are NTPC, Sun pharma, Lupin, Infosys, up between 0.2-2.2%

SMART MOVERS

Shares of Bharat Forge have dipped 6% to Rs 962, its lowest level since January 13, 2015 on the National Stock Exchange (NSE).According to media reports, Bank of America Merill Lynch has slashed target price of Bharat Forge by 16% to Rs 900 per share as weaker demand drives de-rating.

Jubilant Industries has rallied 5% to Rs 328, also its lifetime high on the NSE, in otherwise subdued market. In past one-month, the stock of agrochemicals company have appreciated by 87% from Rs 175 on August 13, compared to 6% fall in the CNX Nifty.