Markets Open in the Red on Weak Macro Data, Global Slump

Indiabulls Housing Finance fell as much as 22.7 percent after the company agreed to buy a 40 per cent stake in UK-based OakNorth Bank for $100 million, raising concerns over capital allocation.

The General Indices (Provisional) for the month of October 2015 for Rural, Urban and Combined are 127.7, 124.2 and 126.1 respectively. The fall in oil prices weighed on oil giant, Oil & Natural Gas Corp, while auto manufacturers, Maruti Suzuki India and Tata Motors, were among the few weekly gainers. “However, for investors that have a two-three year horizon, we reckon the current levels provide an attractive entry into beaten down cyclical and industrial stocks”.

Crude prices hovered near 21/2-month lows after data showed a seventh straight increase in US supplies.

Most Asian shares ended lower, led by a 2.15% slump in Hong Kong’s Hang Seng Index.

The double whammy of a fall in the industrial output growth and rising retail inflation dragged key Indian stock market indices on Friday. Taiwan’s TWI index declined 1.17%. Indian consumer prices climbed 5% in October from a year earlier after a 4.41% increase in September, official data showed on Thursday, challenging RBI governor Raghuram Rajan’s accommodative policy stance before he reviews interest rates a final time this year on 1 December.

Diwali cheer was missing from the market this year as benchmarks Sensex and Nifty fell close to two-and-a-half per cent during the week.

The 30-share barometer, which gained 123.69 points on the first day of Samvat 2072 in special “Muhurat” session on Wednesday, was trading lower by 228.41 points or 0.88% at 25,638.54, with all the sectoral indices led by infra, power, banking and realty in the red.

“Domestic earnings in second quarter were not encouraging and commentary for the third quarter (is) also not looking up”.

The broader market indices outperformed Sensex and Nifty; the BSE Mid-Cap Index fell 1.59 per cent while the BSE Small-Cap Index rose 0.66 per cent, outperforming the Sensex. Index heavyweights, Infosys and Tata Consultancy Services, declined 0.78% to 1,100.45 rupees Friday and 2.96% to 2,397.30 rupees, respectively.