Local equity markets trim some of losses in late afternoon session

Local equity markets trimmed some of their losses in late afternoon session, but continued to trade below the neutral lines. The broader indices, BSE Mid cap index and Small cap index were also trading in red. Traders took note of report that Care Ratings stated that market borrowings by the states so far in FY22 has been 11 per cent less than that in the comparable period in FY21, as 23 states and Delhi have so far raised only Rs 2.18 lakh crore as against the Rs 2.45 lakh crore in the same period in FY21, and this is 15 per cent lower than indicated auction earlier. However, downside remained capped as Union Minister of State for Finance Pankaj Chaudhary has said that the Government is taking effective measures to curb inflation especially food inflation keeping in view of the condition of the people suffering from coronavirus pandemic situation in the country. On the global front, Asian markets were trading mixed ahead of U.S. inflation data offering a glimpse at how the world’s largest economy is recovering. European markets were trading higher as an upbeat earnings season reinforced optimism about the region's economic recovery.

The BSE Sensex is currently trading at 54,392.40, down by 162.26 points or 0.30% after trading in a range of 54167.20 and 54758.74. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.51%, while Small cap index was down by 1.27%.

The top gaining sectoral indices on the BSE were Metal up by 3.18%, Basic Materials up by 0.77%, PSU up by 0.74%, Energy up by 0.74% and Power was up by 0.45%, while Healthcare down by 1.45%, Consumer Durables down by 0.94%, Consumer Discretionary down by 0.85%, Realty down by 0.76% and Bankex was down by 0.64% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 3.30%, NTPC up by 1.71%, Power Grid up by 1.56%, Reliance Industries up by 0.90% and Bajaj Finserv up by 0.89%. On the flip side, Bajaj Auto down by 2.03%, Sun Pharma down by 1.77%, Kotak Mahindra Bank down by 1.73%, Mahindra & Mahindra down by 1.56% and ICICI Bank down by 1.17% were the top losers.

Meanwhile, Union Minister of State for Finance Pankaj Chaudhary has said that the Government is taking effective measures to curb inflation especially food inflation keeping in view of the condition of the people suffering from coronavirus pandemic situation in the country.

Enumerating more steps taken by the Government to alleviate the problems of the common man, the Minister stated that the buffer stock of pulses have been used to tackle price volatility of these commodities. The Minister further stated that the Government imposed stock limits on some pulses under the Essential Commodities Act, 1955 in July 2021, which has had a salutary effect in terms of softening of prices.

Besides, the Minister stated that the Government eased import restrictions to enhance domestic availability of Tur, Urad and Moong and have also entered into MoUs with Myanmar, Malawi, Mozambique for pulses import. Basic import duty and Agriculture Infrastructure and Development Cess on Masur have been brought down to zero and 10% respectively.

The CNX Nifty is currently trading at 16,242.80, down by 37.30 points or 0.23% after trading in a range of 16162.55 and 16338.75. There were 22 stocks advancing against 27 stocks declining on the index, while 1 stock remain unchanged.

The top gainers on Nifty were JSW Steel up by 3.42%, Tata Steel up by 3.34%, Hindalco up by 2.40%, NTPC up by 1.71% and Power Grid up by 1.48%. On the flip side, Shree Cement down by 2.44%, Bajaj Auto down by 1.98%, Sun Pharma down by 1.79%, Kotak Mahindra Bank down by 1.73% and Mahindra & Mahindra down by 1.44% were the top losers.

Asian markets were trading mixed, Nikkei 225 surged 182.36 points or 0.65% to 28,070.51, Hang Seng increased 54.54 points or 0.2% to 26,660.16 and Shanghai Composite was up by 2.69 points or 0.08% to 3,532.62. On the flip side, KOSPI fell 22.57 points or 0.7% to 3,220.62, Straits Times trembled 29.31 points or 0.91% to 3,178.05 and Taiwan Weighted was down by 96.46 points or 0.56% to 17,227.18.

European markets were trading higher, UK’s FTSE 100 increased 23.83 points or 0.33% to 7,184.87, France’s CAC increased 16.11 points or 0.24% to 6,836.32 and Germany’s DAX was up by 13.17 points or 0.08% to 15,783.88.