Sensex, Nifty remain weak in late morning deals

Indian equity benchmarks remained weak in late morning deals, with both Sensex and Nifty trading below neutral lines. Mixed cues from other Asian markets impacted sentiments over the Street. Traders failed to take any sense of relief from reports that the Asian Development Bank (ADB) raised the growth forecast for India in the current fiscal year to minus 8 percent from the minus 9 percent projection in September while keeping the outlook for the next fiscal year at 8 percent. At the same time, it said economic activity in developing Asia is forecast to contract by 0.4 percent this year before picking up to 6.8 percent in 2021 as the region moves toward recovery from the effects of the coronavirus disease (COVID-19) pandemic.

On the global front, Asian markets were trading mixed, after China's consumer prices declined for the first time in more than a decade in November due to the fall in pork prices. The data released by the National Bureau of Statistics showed that consumer prices fell unexpectedly by 0.5 percent year-on-year in November after rising 0.5 percent a month ago. This was the first decline since October 2009. Food prices decreased 2 percent annually due to a notable 12.5 percent fall in pork prices. Pork prices had logged a sharp increase in the last year due to the shortage caused by the African swine flu.

The BSE Sensex is currently trading at 45760.52, down by 342.98 points or 0.74% after trading in a range of 45710.87 and 46001.97. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.83%, while Small cap index was down by 0.84%.

The only gaining sectoral indices on the BSE were FMCG up by 0.86% and Metal up by 0.10%, while Basic Materials down by 1.37%, Capital Goods down by 1.17%, PSU down by 1.02%, Bankex down by 0.99% and Power down by 0.97% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 2.18%, Hindustan Unilever up by 0.84%, ITC up by 0.80%, Asian Paints up by 0.61% and Titan Co up by 0.53%. On the flip side, Ultratech Cement down by 2.67%, Mahindra & Mahindra down by 2.38%, Indusind Bank down by 2.00%, HDFC Bank down by 1.64% and HDFC down by 1.51% were the top losers.

Meanwhile, with an aim to encourage businesses to do fresh hiring amid the pandemic, the Union Cabinet has approved Rs 22,810 crore outlay for the Atmanirbhar Bharat Rojgar Yojana.  The Union Cabinet, chaired by the Prime Minister, Narendra Modi, has given its approval for Atmanirbhar Bharat Rojgar Yojana to boost employment in formal sector and incentivize creation of new employment opportunities during the Covid recovery phase under Atmanirbhar Bharat Package 3.0.

The Cabinet has approved an expenditure of Rs 1,584 crore for the current financial year and Rs 22,810 crore for the entire Scheme period - 2020-2023. Under the scheme, the government will provide subsidy for two years in respect of new employees engaged on or after Oct. 1, 2020, and up to June 30, 2021, Labour Minister Santosh Gangawar said in a briefing on the Cabinet decision. The government will pay both 12% employees' contribution and 12% employers' contribution i.e. 24% of basic wages towards employees provident fund in respect of new employees in establishments employing up to 1,000 employees for two years.

However, the government will pay only employees' share of EPF contribution i.e. 12% of wages in respect of new employees in establishments employing more than 1,000 employees for two years. An employee drawing a monthly wage of less than Rs 15,000, who was not working in any establishment registered with the Employees' Provident Fund Organisation before Oct. 1, 2020, and did not have a Universal Account Number or EPF Member account number prior to Oct. 1, 2020, will be eligible for the benefit.

Any EPFO member possessing Universal Account Number drawing a monthly wage of less than Rs 15,000, who exited employment during Covid pandemic from March 1, 2020, to Sept. 30, 2020, and did not join employment in any EPFO covered establishment up to Sept. 30, 2020, will also be eligible to avail the benefit. The EPFO will credit the contribution in Aadhaar seeded account of members in an electronic manner. The EPFO will develop software for the scheme and also develop a procedure which is transparent and accountable.

The CNX Nifty is currently trading at 13424.65, down by 104.45 points or 0.77% after trading in a range of 13399.30 and 13488.50. There were 16 stocks advancing against 34 stocks declining on the index.

The top gainers on Nifty were Nestle up by 2.15%, Britannia up by 1.61%, Hindalco up by 1.27%, ITC up by 0.90% and Hindustan Unilever up by 0.77%. On the flip side, UPL down by 12.07%, Ultratech Cement down by 2.77%, Shree Cement down by 2.49%, Tata Motors down by 2.35% and Mahindra & Mahindra down by 2.34% were the top losers.

Asian markets were trading mixed; Jakarta Composite soared 39.19 points or 0.66% to 5,983.60, Nikkei 225 surged 17.09 points or 0.06% to 26,835.03, Shanghai Composite gained 8.14 points or 0.24% to 3,380.10 and KOSPI rose 6.96 points or 0.25% to 2,762.43. On the flip side, Straits Times trembled 13.01 points or 0.46% to 2,830.06, Hang Seng decreased 126.87 points or 0.48% to 26,375.97 and Taiwan Weighted dropped 161.61 points or 1.12% to 14,228.53.