Benchmarks trim some losses in late afternoon session

Local equity benchmarks trimmed some of their losses but continued trade below neutral line in late afternoon session. Traders remain concerned even after Asian Development Bank (ADB) upgraded its forecast for the Indian economy, projecting 8 percent contraction in 2020-21 as compared to 9 percent degrowth estimated earlier, on the back of faster than expected recovery. Traders took note of report that the Union Cabinet has approved a memorandum of understanding between India and Suriname for cooperation in the field of health and medicine. Sector wise, power stocks remained in focus, as Moody's Vice President and Senior Credit Officer said their outlook for the A-Pac power sector is stable for 2021 as it has been since 2009. On the global front, Asian markets were trading mostly in red after weakness in technology companies’ shares led an overnight decline on Wall Street. European markets were trading higher ahead of a highly-awaited European Central Bank meeting, with multinational British companies getting a boost from floundering negotiations on a U.K.-European Union trade deal.

The BSE Sensex is currently trading at 45817.98, down by 285.52 points or 0.62% after trading in a range of 45685.87 and 46001.97. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.85%, while Small cap index was down by 0.69%.

The only gaining sectoral indices on the BSE were FMCG was up by 2.12%, while Basic Materials down by 1.71%, Power down by 1.28%, PSU down by 1.19%, Bankex down by 1.14% and Auto was down by 1.02% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 3.62%, ITC up by 2.61%, Hindustan Unilever up by 2.01%, ONGC up by 0.77% and Kotak Mahindra Bank up by 0.69%. On the flip side, Ultratech Cement down by 3.28%, Mahindra & Mahindra down by 3.09%, Indusind Bank down by 2.03%, ICICI Bank down by 1.99% and HDFC Bank down by 1.87% were the top losers.

Meanwhile, upgrading growth projection, the Asian Development Bank (ADB) in its latest report has raised the growth forecast for India to minus 8 percent in the current fiscal year from the minus 9 percent projection in September while keeping the outlook for the next fiscal year at 8 percent.

As per the report, the 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.

ADB further noted that pandemic-induced lockdowns and restrictions have been eased in varying levels in the region with merchandise exports rebounding quickly from substantial declines in the second quarter. Besides, it said that mobility is also returning to pre-COVID-19 levels in East Asia and the Pacific where its spread has largely been contained or prevented in recent months. A recovery in tourism, however, is likely to be delayed.

The CNX Nifty is currently trading at 13425.90, down by 103.20 points or 0.76% after trading in a range of 13399.30 and 13488.50. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Nestle up by 3.56%, ITC up by 2.48%, Britannia up by 2.36%, Hindustan Unilever up by 1.95% and HDFC Life Insurance up by 0.69%. On the flip side, UPL down by 13.16%, Ultratech Cement down by 3.48%, Mahindra & Mahindra down by 3.05%, Tata Motors down by 2.85% and Shree Cement down by 2.66% were the top losers.

Asian markets are trading mostly in red, Nikkei 225 slipped 61.70 points or 0.23% to 26,756.24, Hang Seng decreased 92.25 points or 0.35% to 26,410.59, KOSPI fell 9.01 points or 0.33% to 2,746.46, Taiwan Weighted dropped 140.65 points or 0.98% to 14,249.49, Straits Times trembled 14.37 points or 0.51% to 2,828.70 and Jakarta Composite was down by 10.71 points or 0.18% to 5,933.70. On the flip side, Shanghai Composite was up by 1.32 points or 0.04% to 3,373.28.

European markets were trading higher; UK’s FTSE 100 increased 25.79 points or 0.39% to 6,590.08, France’s CAC increased 20.05 points or 0.36% to 5,566.87 and Germany’s DAX was up by 12.05 points or 0.09% to 13,352.31.