Benchmarks trim some losses in late afternoon session

Local equity benchmarks trimmed some of their losses in late afternoon session, but continued to trade in red. Indusind Bank, HCL Tech and Bharti Airtel were the prime losers. Sentiments remained down-beat after Asian Development Bank (ADB) in its latest report has downgraded India's economic growth forecast for the current financial year to 10 percent, from 11 percent projected in April. Traders overlooked that unemployment rate fell to a six-month low of 5.98% for the week ended July 18 after inching up to 7.64% in the previous week. During the week ended July 18, the rate of joblessness fell in both urban and areas to 7.9% and 5.1% from 8.9% and 7.06%, respectively, in the previous week. On the global front, all Asian markets were trading lower following another rough day for global markets as the fast-spreading Covid Delta variant fuels concerns over the expected economic recovery. However, European markets were trading higher after sharp losses the previous day suffered on resurgent coronavirus fears.

The BSE Sensex is currently trading at 52,213.21, down by 340.19 points or 0.65% after trading in a range of 52013.51 and 52465.03. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.90%, while Small cap index was down by 0.98%.

The few gaining sectoral indices on the BSE were IT up by 0.32%, FMCG up by 0.19% and TECK was up by 0.13%, while Power down by 2.00%, Telecom down by 1.90%, Metal down by 1.89%, Utilities down by 1.65% and Realty was down by 1.45% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.54%, Ultratech Cement up by 1.68%, Hindustan Unilever up by 1.48%, Infosys up by 0.86% and TCS up by 0.82%. On the flip side, Indusind Bank down by 2.69%, HCL Tech down by 2.14%, Bharti Airtel down by 2.10%, Tata Steel down by 2.00% and Mahindra & Mahindra down by 1.99% were the top losers.

Meanwhile, amid the adverse impact of the coronavirus pandemic, Asian Development Bank (ADB) in its latest report has downgraded India's economic growth forecast for the current financial year to 10 percent, from 11 percent projected in April.

The multilateral funding agency said that India's GDP growth recovered to 1.6 percent in the last quarter of the fiscal year ended March 2021, narrowing contraction in the whole fiscal year from 8 percent estimated in April to a revised 7.3 percent.

As per the report, the projection for FY2022 (ending in March 2023), by which time much of India's population is expected to be vaccinated, is upgraded from 7 percent to 7.5 percent as economic activity normalizes.

The CNX Nifty is currently trading at 15,642.20, down by 110.20 points or 0.70% after trading in a range of 15578.55 and 15728.45. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Asian Paints up by 2.88%, Grasim Industries up by 1.82%, Ultratech Cement up by 1.79%, Hindustan Unilever up by 1.61% and Maruti Suzuki up by 1.19%. On the flip side, Hindalco down by 2.90%, Indusind Bank down by 2.65%, HCL Tech down by 2.17%, Bharti Airtel down by 2.15% and Mahindra & Mahindra down by 2.13% were the top losers.

All Asian markets were trading lower, Nikkei 225 slipped 264.58 points or 0.96% to 27,388.16, Taiwan Weighted dropped 260.51 points or 1.46% to 17,528.74, Hang Seng decreased 230.53 points or 0.84% to 27,259.25, KOSPI fell 11.34 points or 0.35% to 3,232.70 and Shanghai Composite was down by 2.33 points or 0.07% to 3,536.79.

European markets were trading higher, UK’s FTSE 100 increased 71.46 points or 1.04% to 6,915.85, France’s CAC increased 76.24 points or 1.21% to 6,372.21 and Germany’s DAX was up by 134.36 points or 0.89% to 15,267.56.