Markets extend losses, Nifty below 8,250; metals drag

Benchmark indices have extended losses and are trading near day’s low weighed down by metal and oil shares.

At 14:30 pm, the 30-share Sensex was down 132 points at 27,233 and the 50-share Nifty was down 39 points at 8,235.

In the broader market, the BSE MidCap and SmallCap indices area trading mixed. Market breadth remains flat with 1,368 gainers and 1,312 losers on the BSE.

In the currency front, the Indian rupee trimmed early gains and was trading lower at 64.88 to the US dollar compared to the previous close of 64.81.

Meanwhile, Standard & Poor’s (S&P) has retained India’s rating at ‘BBB-’ with stable outlook, the lowest investment grade for India thus dashing the government’s hope for a rating upgrade for at least for two years — this year and the next.
 
Further, foreign institutional investors were net buyers in equities to the tune of Rs 898 crore on Monday, as per provisional stock exchange data.

EARNINGS CORNER

ACC, Hero Moto, Biocon, Mphasis and Jyoti Labs are some of the companies that will announce their September quarter earnings today.

GLOBAL MARKETS

Asian equities were mostly lower on Tuesday after commodity prices languished in the wake of China's soft growth data and dampened risk sentiment.

The euro hovered near a 10-day low ahead of a European Central Bank meeting that could open the door for yet more monetary easing.

With risk appetite flagging in Asia, spreadbetters expected a slightly lower open for Britain's FTSE, Germany's DAX and France's CAC.

The Canadian dollar, already under pressure from sliding crude oil prices, faced extra headwinds as Canada's Liberal Party was tipped to won Monday's general election which would pave the way for increased government spending.

Canada's major television networks projected Justin Trudeau's Liberals would topple Prime Minister Stephen Harper's Conservative government, which is known for its fiscal frugality.

The Canadian dollar, or loonie, weakened 0.2% to C$1.3039 to the dollar CAD=D4 after slumping 0.9% overnight on the prospect of voters opting for a prime minister who plans to run deficits to increase infrastructure spending.

SECTORS & STOCKS

BSE Metal, Realty and IT indices have plunged between 0.6-1.5%. However, BSE Power, IT and Consumer Durables indices are up 0.6-1.4%.

The top losers from the Sensex pack are Vedanta, Cipla, M&M, Hindalco, Tata Steel, Bajaj Auto, ONGC and Coal India.

Vedanta expects its iron ore exports from Goa to be much higher than its permitted mining capacity of 5.5 million tonnes in the fiscal year to March, as it bids for ore in government-run auctions.

Tractor and utility vehicle market leader Mahindra & Mahindra (M&M) announced on Monday that it has forayed into pulses retailing under the brand ‘NuPro’ with a launch price of tur at Rs 210 a kg against the prevailing price range of Rs 180 and Rs 220 a kg.

The foreign investment arm of India's top oil explorer ONGC is targeting $10-$12 billion of oil and gas asset purchases over the next three years, including more corporate acquisitions, its managing director said.

The government has for the third time extended deadline for appointment of merchant bankers for the mega Rs 21,000-crore share sale in Coal India Ltd after global investment banks flagged concerns over the company allegedly not meeting green commitments.

On the gaining side, Tata Motots, TCS, NTPC, Maruti Suzuki and Infosys have gained between 1-2%.

Shares of power generation companies such as Reliance Power, Torrent Power and Adani Power are in focus and rallied by over 5% each in otherwise subdued market.

According to Moody’s Investor Service, Indian power producers’ consumption of costly imported coal has fallen thanks to a sharp increase in domestic coal production, a credit positive.

Among other shares, Bajaj Finance were up over 5% at Rs 5,280 on the BSE after the company reported 42% growth in standalone net profit at Rs 279.4 crore for the quarter ended September 2015 compared with Rs 197 crore in the corresponding quarter last fiscal.

BASF India has dipped 7% to Rs 971 also its 52-week low on the BSE, after reporting a net loss of Rs 58.70 crore for the quarter ended September 30, 2015 (Q2).

Shares of Ramco Systems were up over 3% at Rs 818 on the BSE after the company announced the launch of its HCM (Human Capital Management) offering for the US market, at the HR Tech Show 2015, in Las Vegas.