 "Nifty trades below 7,800; metal, FMCG shares drag")
Benchmark indices continue to trade lower tracking weak global cues along with selling pressure emerging among capital goods, FMCG and IT shares leading the decline.
Further, 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, government data showed on Thursday. Also, the retail inflation climbed to a four-month high in October as food prices escalated on supply deficiency in pulses.
At 14:55 pm, the 30-share Sensex was down 231 points at 25,636 and the 50-share Nifty was down 67 points at 7,761.
The broader markets are underperforming the benchmark indices- BSE Midcap and Smallcap indices are down 0.7-1.4%. Market breadth remains weak with 1,646 losers and 823 gainers on the BSE.
In the currency front, the rupee was trading higher by 17 paise at 66.14 to the US dollar after exporters pressed sales in the US currency.
According to Motilal Owsal’s market report, “The down trend may drag index to 7750 levels from where one can expect to see some relief rally”.
GLOBAL MARKETS
Asian shares fell sharply on Friday after commodity prices tumbled to multi-year lows on worries that slower global growth may worsen a supply glut, while US Federal Reserve officials kept drumming up the case for a rate hike next month.
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.5%, led by losses in resource shares. It was set for a weekly decline of 3.2%.
Japan's Nikkei closed down 0.5%, snapping a seven-day winning streak, but remained on track for a weekly gain of 1.7%.
The Shanghai Composite index slipped 1.1%, and was poised to end the week flat.
SECTORS & STOCKS
BSE FMCG and Capital Goods indices have slipped by almost 2% followed by counters like Healthcare, IT, Auto, Oil & Gas and Realty, all declining by 1% each. However, metal and Consumer Durables sectors are trading in positive zone.
The top losers from the Sensex pack are Vedanta, Hindalco, Cipla, ONGC, TCS, Bajaj Auto and L&T.
Metal shares are reeling under selling pressure as global commodity prices have declined significantly.
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% 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.
Capital Goods shares have declined because the annual industrial output grew at a slower-than-expected pace of 3.6% in September.
On the gaining side, Coal India, Axis Bank, Tata Steel, Reliance Inds and Bharti Airtel have surged between 0.3-3%.
State-run Coal India is trading higher by nearly 3% after company invited bids from international companies in order to establish a washery in Jharkand.
Tata Steel have firmed 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.
