Key indices continue to trade lower in afternoon deals

Indian equity benchmarks continued their weak trade in afternoon session, on the back of sustained selling activities by market-participants amid weakness across Asian peers. Traders were seen in selling position for capital goods, telecom and banking stocks, while buying was witnessed in healthcare, energy and consumer discretionary stocks. Sentiments were impacted as the retail inflation based on the Consumer Price Index (CPI) inched up to 7.61 per cent in October, driven by rising food prices. Inflation stood at 7.27 per cent in September 2020 and it was 4.62 per cent in October 2019. However, downfall remain capped with Finance Minister Nirmala Sitharaman’s statement that the Indian economy is witnessing a strong recovery after a long and strict lockdown. Addressing a press conference to announce more stimulus measures to boost growth, she said macro-economic indicators are pointing towards recovery.

On the global front, Asian markets were trading mostly in red as the woes over global economic health accelerated with the surge in the covid-19 infections. Back home, the BSE Sensex is currently trading at 43295.44, down by 61.75 points or 0.14% after trading in a range of 43053.37 and 43522.25. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.32%, while Small cap index was up by 0.75%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.86%, Energy up by 0.85%, Consumer Discretionary up by 0.63%, Metal up by 0.53% and Realty was up by 0.53%, while Capital Goods down by 0.78%, Telecom down by 0.61%, Bankex down by 0.59%, Industrials down by 0.39% and PSU was down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.09%, Reliance Industries up by 1.22%, Asian Paints up by 0.85%, Titan Company up by 0.83% and Bajaj Finance was up by 0.82%. On the flip side, Larsen & Toubro down by 2.52%, Indusind Bank down by 1.81%, HDFC Bank down by 1.34%, SBI down by 1.34% and Bharti Airtel was down by 0.98% were the top losers.

Meanwhile, remaining above the comfort level of the Reserve Bank of India (RBI), the retail inflation based on the Consumer Price Index (CPI) inched up to 7.61 per cent in October, driven by rising food prices. Inflation stood at 7.27 per cent in September 2020 and it was 4.62 per cent in October 2019. The rise in general inflation was mainly on account of elevated food prices. The RBI, which mainly factors in retail inflation while arriving at key policy rates, has been mandated by the government to keep inflation at 4 per cent (+, - 2 per cent).

The National Statistical Office (NSO) under Ministry of Statistics and Programme Implementation in its data has showed that the Rural CPI (General) in October stood at 7.69 per cent as against 7.36 per cent in September. The Urban CPI (General) stood at 7.40 per cent in October as against 7.26 per cent in September. The rate of price rise in the food basket was 11.07 per cent in October up compared to 10.68 per cent in September. The data indicated that the Rural Consumer Food Price Index (CFPI) stood at 11.05 per cent in October as compared to 10.53 per cent in September. The Urban CFPI stood at 11.19 per cent in October as against 10.94 per cent in September.

The data showed vegetable prices surged 22.51 per cent in October after increasing 20.73 per cent in September. Prices of meat and fish increased 18.7 per cent in October against a 17.6 per cent rise in the previous month, while pulses rose 18.34 per cent in October against a 14.67 per cent rise in September. Among major categories that make up the CPI, fuel and light inflation jumped 2.28 per cent, compared to a 2.87 per cent rise in September, while health costs climbed 5.22 per cent, against a 4.9 per cent surge in the previous month. Household goods and services prices recorded a 2.83 per cent growth, marginally down from September’s 2.9 per cent.

The CNX Nifty is currently trading at 12675.85, down by 14.95 points or 0.12% after trading in a range of 12607.70 and 12735.95. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 6.96%, Coal India up by 2.17%, Bajaj Finserv up by 1.93%, Hero MotoCorp up by 1.32% and Divis Lab up by 1.28%. On the flip side, Tata Motors down by 2.61%, Larsen & Toubro down by 2.52%, Indusind Bank down by 2.07%, HDFC Life Insurance down by 1.89% and SBI Life Insuran down by 1.44% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 80.23 points or 0.31% to 26,089.15, Jakarta Composite lost 18.84 points or 0.35% to 5,439.76, Straits Times trembled 8.47 points or 0.31% to 2,703.43, Shanghai Composite declined 43.29 points or 1.3% to 3,295.39 and Nikkei 225 was down by 135.01 points or 0.53% to 25,385.87.

On the other hand, KOSPI rose 18.25 points or 0.74% to 2,493.87 and Taiwan Weighted was up by 51.55 points or 0.39% to 13,273.33.