Markets falter on weak global cues

Markets closed the session on a dismal note, amid weak global cues, on a broadbased sell-off across the counters with Banks, IT and Metal stocks contributing the most to the decline.

Meanwhile, caution prevailed on the bourses after the Fed released the minutes of its latest policy meeting stating that the conditions for a rate hike are approaching.

Provisionally, the Sensex slumped 286 points to close at 27,647 and the Nifty slipped 111 points to end at 8,384. 

_______________________

(updated at 2:30 PM)

The benchmark indices have weakened by aound 1% in a volatile session of trade due to negative cues from the global front. The lingering fears of a slowdown in China and Fed's signals at its latest policy meet, of a rate hike in the offing, seem to have rattled the market participants.

Index heavyweights such as Reliance Industries, Tata Steel, Tata Motors and Infosys and SBI are spearheading the weakness on the bourses.

The BSE Sensex has oscillated more than 300 points between a high of 27,964 and a low of 27,667 and at 2.30pm, the BSE benchmark was at 27,680, lower by 250 points or 0.9% and the Nifty was at 8,391, down 103 points.

The broader markets are also in sync with their larger peers, with the BSE Midcap and Smallcap indices shedding 0.4% each at 11,386 and 11,747 respectively. The market breadth is negative, with 1,573 declines as against 943 advances on the BSE. The market breadth is weak. Out of 2,769 stocks traded on the BSE, there are 736 advancing stocks as against 1,940 declines.

All the Asian markets are trading in the red, with China's Shanghai Composite shedding more than 3%, while Hang Seng, Kospi and Straits Times losing about 1% each as the pessimistic assessments of China's economy seem to be dampening the prevailing sentiment.

Meanwhile, crude oil prices have tumbled to a fresh six-year lows on the latest sign of a glut in crude supplies. And the rupee is quoting at 65.23 against the US dollar after fresh selling of dollars by banks and exporters.

SECTORS AND STOCKS

The metal and banking indices are the top sectoral losers on the BSE, while the FMCG and pharma space are holding out among the general rout.

Metal stocks are losing sheen due to softening global commodity prices and concerns over slowing demand from China. Tata Steel, Jindal Steel, Vedants and Hindalco have declined by 1-3% each.

The largecap banks such as Axis Bank, ICICI BANK and SBI have lost around 2% each, while the midcap banking names such as Kotak Mahindra Bank, Bank of Baroda and PNB have shed 1-3% each, after recent gains.

IT shares which had rallied in the previous sessions on the back of a weakening rupee witnessed profit taking. Infosys, TCS and Wipro are down 1-3% each.

Eight stocks – Tata Motors, Oil and Natural Gas Corporation (ONGC), Vedanta, Hindalco Industries, Cairn India, NTPC, NMDC and Gail (India) - from the 50 Nifty companies have hits their respective 52-week lows in intra-day today.

On the other hand, the FMCG index has gained nearly 2% on the back of stellar gains in FMCG heavyweights such as ITC and HUL. ITC has surged by more than 4% to Rs 330 on reports that Morgan Stanley had upgraded the stock to ‘overweight’ from ‘underweight’ and raised the target price to Rs 400 from Rs 390, citing benign valuations and earnings expectations. Giving ITC company is HUL, which has strengthened by nearly 2%.

Pharma companies are trading higher for second straight day after the drug majors Sun Pharma, Lupin and Glenmark Pharma recieved approval from USFDA for new drugs. Lupin, Sun Pharmaceutical Industries and Glenmark Pharma have gained 1%-7% each, while the midcap pharma names such as Torrent Pharmaceuticals, Strides Arcolab, Aurobindo Pharma, Shasun Pharmaceuticals, Unichem Laboratories, Granules India, Lincoln Pharmaceuticals and Nectar Lifescience have touched lifetime highs in intra-day trades.

Cholamandalam Investment and Finance, Aditya Birla Nuvo, Tech Mahindra and Bharti Airtel have gained 1-2% each after receiving 'in principle' approval for setting up payments banks that will provide barebones facilities aimed at covering the vast swathe of population that has no access to financial services. However, Reliance Industries is trading flat on the BSE.