Indian shares ended flat after earlier hitting their lowest levels in 1-1/2 months as software services providers fell after Tata Consultancy Services' tepid comments on its outlook, while other blue-chips were hit by global risk aversion.
The BSE benchmark Sensex ended down by 31.12 points or 0.11 per cent at 27,319.56 and the 50-share NSE index Nifty ended down by 4.5 points or 0.05 per cent at 8,219.60.
Among BSE sectoral indices, realty index fell the most by 2.07 per cent, followed by consumer durables 2.02 per cent, IT 1.94 per cent and TECk 1.46 per cent, while banking index was up 0.35 per cent and PSU 0.18 per cent.
Gainers, losers
HDFC (4.94%), Coal India (3.26%), ONGC (1.77%), HDFC Bank (0.99%) and BHEL (0.71%) were the top five Sensex gainers, while the major losers were TCS (3.78%), SSLT (2.39%), Axis Bank (1.3%), Cipla (1.27%) and Tata Motors (1.24%).
Brokers' comment
A report by SMC Investments and Advisors said “US stocks had their worst week since 2011 amidst global growth concerns. Asian stocks showed a lacklustre performance as negative sentiment from China affected other Asian markets. The Bank of Japan revealed an index measuring business sentiment. The large manufacturers' index came in with a score of 12, missing forecasts for 13, which would have been unchanged from the third quarter. The outlook score is a little more ominous, suggesting that the index will fall to 9 in the first quarter of next year. The survey is closely watched by the Bank of Japan for formulating policies.”
Domestic sentiment was dampened on continued selling by funds and retail investors after October industrial production contracted sharply.
Brokers said selling activity gathered momentum on disappointing economic data as the country’s industrial production contracted by 4.2 per cent in October, the sharpest decline in at least two years. However, data showing retail inflation eased to a fresh low of 4.38 per cent in November — the fifth straight month of decline — restricted the fall to some extent.
Early trade
The BSE benchmark Sensex plunged 215 points to 27,136 in early trade and the Nifty opened down by 63 points at 8,161.
European markets
>European shares held steady on Monday after posting their biggest weekly loss since mid-2011 in the previous session, with a halt to oil’s sell-off lifting energy stocks.
The STOXX Europe 600 oil and gas index rose 1.4 per cent as Brent prices rebounded from a 5-1/2 year low on hopes of improving manufacturing data
Abenomics impact
Any benefits from Abenomics are relatively small for China and India against rest of Asia, according to Japanese brokerage Nomura.
Japanese Prime Minister Shinzo Abe’s coalition has secured big election win. Any measures by Japan to stimulate its economy via monetary easing could raise expectations of inflows into emerging markets, it said.
Nomura added top economies to benefit from Abenomics are Malaysia, Singapore, Thailand, Taiwan and the Philippines
Nomura’s FDI scorecard showed Thailand as the most exposed to Japanese FDI, followed by China, Indonesia and India.
Asian markets
Asian shares slipped to nine-month lows on Monday as oil prices sank to fresh 5-1/2 year lows on concerns about a supply glut and slower global growth, hitting the stocks of energy and commodity producers and exporters.
Investors were nervous after US shares posted their biggest weekly fall in 2-1/2-years last week on losses led by energy sector, and as they expect the US Federal Reserve to hint this week it is getting closer to raising interest rates.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1.1 per cent to its lowest level since March.
Japan's Nikkei share average fell 1.3 per cent, drawing little momentum from Japanese Prime Minister Shinzo Abe's big election victory on Sunday, which was a boost for his reflationary economic policies.
The US Dow Jones Industrial Average had ended 1.79 per cent lower in Friday’s trade.