Markets extend losses; Sensex down 100 points

Markets have turned weak in the afternoon session as selling pressure intensified across the board. The weakness in European equities on account of lowering crude oil prices has also dented the sentiments.

At 2:35 pm, the S&P BSE Sensex shed 113 points at 24,711 and the Nifty50 lost 45 points at 7,509.

The RBI at its sixth bi-monthly monetary policy review on Tuesday kept the repo rate unchanged at 6.75%. The cash reserve ratio (CRR), or the portion of a bank’s money maintained with the central bank in cash, was also unchanged at 4%.  The RBI, however, indicated that rates would continue to soften, prompted by benign inflation and weak economic and industrial growth.

On the global front, the Asian shares, barring Shanghai Composite, have all dropped today owing to the fall in crude oil as well as growing concerns of a global slowdown. European shares also followed suit with major indices falling over 1% each.

In the commodity space, crude oil, overnight fell as much as 7% as growing clamour over slowdown in demand from China added pressure on the commodity.  Further, forecast of a milder winter in the US and scepticism over a deal between OPEC and non-OPEC countries to tackle the supply glut has accentuated the woes.

SECTORS & STOCKS

Sectorally , BSE Metal and Oil&Gas indices along with BSE Bankex are down between 1-3% each.

After the RBI maintained status quo on the interest rates, banking and financial shares have come under pressure. ICICI Bank, SBI, and Axis Bank have lost between 1-3% each.

The metal pack has lost sheen owing to a drop in commodity prices globally. Jindal Steel, Vedanta, Tata Steel, all have dropped between 5-7% each.

Sun Pharma has dipped over 2.5% on account of profit-booking.

On the flip side, Bajaj Auto today reported 1.78% increase in total sales in January at 2,93,939 units as against 2,88,746 units during the same month last year. The stock has gained 2.3% and emerged as the top gainer from the Sensex pack.

Among other stocks, Aurobindo Pharma has received final approval from the US Food and Drug Administration (US FDA) to manufacture and market Celecoxib capsules. These capsules are used in the treatment of pain and inflammation of osteoarthritis, rheumatoid arthritis among others. The stock has dropped 4%

Shares of InterGlobe Aviation, which operates IndiGo airline, have dipped nearly 6% to Rs 834 on the BSE, its lowest level since listing on November 10, 2015. The stock  has dropped 4%

The third quarter results of Tech Mahindra, India’s fifth largest information technology services player, were a shade lower than Street estimates. However, slower revenue growth in major markets such as Europe and the US, and lower other income dented its net profit numbers. The stock has dropped 4%.