Markets enter into red terrain; Sensex loses around 150 points

Key Indian equity benchmarks entered into red terrain in late morning session, with Sensex losing around 150 points. Heavy selling in Auto, PSU and Telecom stocks, were weighing on the sentiments. Anxiety spread among the investors with the report that the overall trade deficit widened to $16298.47 million during the month under review as against $9904.82 million in January 2017, the highest in more than three years. Some concerns also came after the World Bank identified two global risks that could jeopardise the country’s progress towards a ‘global middle-class status’. These two risks are anti-international trade sentiment and climate change. The World Bank further noted that India’s services exports are being challenged and the climate change is posing threat to the agricultural sector.

On the global front, most of the Asian markets are shut for the Lunar New Year holidays. Meanwhile, crude oil prices rallied and US stocks extended their winning streak to five sessions overnight as investors largely shrugged off indications of rising inflation. Back home, in scrip specific development, Bharat Heavy Electricals gained after the company successfully commissioned the 18 MW Mukerian Hydro-Electric Project (HEP) Stage-II in Punjab, with the commissioning of the second 9 MW hydro generating unit.

The BSE Sensex is currently trading at 34149.48, down by 147.99 points or 0.43% after trading in a range of 34149.46 and 34508.24. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.84%, while Small cap index was down by 0.84%.

The only gaining sectoral indices on the BSE were IT up by 0.57% and TECK up by 0.32%, while Auto down by 1.20%, PSU down by 0.92%, Telecom down by 0.91%, Metal down by 0.85% and Consumer Disc down by 0.84% were the top losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 1.79%, TCS up by 1.42%, Dr. Reddy’s Lab up by 1.39%, Infosys up by 0.64% and Indusind Bank up by 0.04%. On the flip side, Yes Bank down by 2.36%, Sun Pharma down by 2.16%, Axis Bank down by 1.37%, SBI down by 1.34% and ICICI Bank down by 1.25% were the top losers.

Meanwhile, NITI Aayog CEO Amitabh Kant has asserted that there is no need to frame and implement a comprehensive electric vehicle (EV) policy as an action plan has been prepared. He also said that instead of trapping technology in rules and regulations, focus should be on promoting new innovations. This announcement has come as a sigh of relief for automakers who bat against government stringent policy on transitioning India into electric vehicles nation.

Kant has stated that day-to-day technological innovations are taking place in the automobile sector. He also said that they are making an action plan on electric vehicles which will be given to all ministries and they will monitor it. Adding further, he said that technology is always ahead of rules and regulations, and it becomes difficult to change rules and regulations. He mentioned that future will be shared economy, future will be connected economy and the future will zero-based emission policy.

Meanwhile, Road Transport and Highways Minister Gadkari has said that the government has already taken many decisions on electric vehicles and the charging stations at NITI Aayog can charge different vehicles manufactured by Tata, Mahindra, Nissan or others. Besides, government think-tank NITI Aayog in a joint report with Rock Mountain Institute has stated that accelerated adoption of more electric and shared vehicles could result in saving as much as $60 billion in diesel and petrol costs along with cutting down as much as 1 gigatonne (GT) of carbon emissions by 2030.

The CNX Nifty is currently trading at 10506.15, down by 39.35 points or 0.37% after trading in a range of 10501.10 and 10612.90. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Ambuja Cement up by 1.82%, Kotak Mahindra Bank up by 1.54%, TCS up by 1.42%, Dr. Reddy’s Lab up by 1.29% and HCL Tech. up by 1.14%. On the flip side, Yes Bank down by 2.36%, Sun Pharma down by 1.96%, Bharti Infratel down by 1.56%, SBI down by 1.49% and Axis Bank down by 1.37% were the top losers.

Most of the Asian markets were closed on account of Lunar New Year holiday. Nikkei 225 increased 267.51 points or 1.25% to 21,732.49.