Key indices add losses in late morning session

Indian equity benchmarks added losses during the late morning session, with both the Sensex and the Nifty trading in deep red. Negative cues from other Asian markets impacted sentiments over the Dalal Street. Market participants overlooked reports that even as India's hiring activities declined last year due to the coronavirus pandemic, there is a sudden increase in demand with about 53 per cent of companies saying they are planning to increase their headcounts in 2021. The pandemic adversely impacted economies across Asia-Pacific, including India, which had entered 2020 with robust hiring activities, according to professional recruitment services firm Michael Page India's 'Talent Trends 2021 Report'.

On the global front, Asian markets were trading in red, after Singapore house prices increased at a faster pace in the fourth quarter. The Urban Redevelopment Authority reported that house prices grew 2.1 percent on a yearly basis, faster than the 0.8 percent increase seen in the previous quarter. However, in 2020 as a whole, house price inflation slowed to 2.2 percent from 2.7 percent in 2019.

The BSE Sensex is currently trading at 49268.92, down by 355.84 points or 0.72% after trading in a range of 49139.24 and 49676.88. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.48%, while Small cap index was down by 0.55%.

The top gaining sectoral indices on the BSE were Auto up by 2.98%, Consumer discretionary up by 0.92%, IT up by 0.26%, FMCG up by 0.15% and TECK up by 0.15%, while Metal down by 2.04%, Bankex down by 1.68%, Energy down by 1.32%, Realty down by 1.23% and PSU down by 1.15% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Auto up by 9.80%, Hindustan Unilever up by 1.53%, Maruti Suzuki up by 1.06%, TCS up by 0.85% and Infosys up by 0.74%. On the flip side, Axis Bank down by 3.14%, Tech Mahindra down by 2.05%, ICICI Bank down by 2.04%, NTPC down by 2.03% and HDFC down by 1.79% were the top losers.

Meanwhile, the Reserve Bank of India (RBI), in its latest assessment of the economy, indicated that the Indian economy has further recovered and estimates the Gross Domestic Product (GDP) to turn positive in the third quarter of current financial year (Q3FY21).The RBI has said in a new report that high-frequency indicators like government expenditure in key growth-focused projects, pickup in merchandise trade, bank credit and high manufacturing activity in December 2020 are a sign of better recovery of the economy.

It mentioned in India, recent shifts in the macroeconomic landscape have brightened the outlook, with GDP in striking distance of attaining positive territory and inflation easing closer to the target. It highlighted the 27-indicator economic activity index and said that the GDP growth is now predicted to grow 0.1 per cent in the third quarter of 2020-21.

Besides, the RBI suggested that the Indian economy has been able to recover as it managed to avoid a second Covid-19 wave. It highlighted the importance of India ducking a second wave of Covid-19 and how since mid-September, India has bent it like Beckham.

The CNX Nifty is currently trading at 14502.40, down by 87.95 points or 0.60% after trading in a range of 14453.00 and 14619.90. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 10.00%, Hero MotoCorp up by 6.22%, Tata Motors up by 2.70%, Eicher Motors up by 2.67% and Hindustan Unilever up by 1.58%. On the flip side, Axis Bank down by 3.16%, Hindalco down by 2.55%, Tech Mahindra down by 2.19%, NTPC down by 2.08% and ICICI Bank down by 2.04% were the top losers.

Asian markets were trading in red; Nikkei fell 118.83 points or 0.41% to 28,638.03, Straits Times slipped 22.01 points or 0.73% to 2,995.14, Hang Seng weakened 447.65 points or 1.50% to 29,480.11, Taiwan Weighted declined 167.31 points or 1.04% to 15,986.46, KOSPI lost 2.15 points or 0.07% to 3,158.69, Jakarta Composite plummeted 80.32 points or 1.25% to 6,333.57 and Shanghai Composite was down by 26.26 points or 0.73% to 3,595.00.