Key indices add losses in morning deals

Indian equity benchmarks added losses in morning deals, on the back of not-so-encouraging cues from the global front. Some concern also came with a periodic labour force survey by the National Statistical Office (NSO) showed that unemployment rate for all ages in urban areas rose to 10.3 per cent in October-December 2020 as compared to 7.9 per cent in the corresponding months a year ago. Traders overlooked Reserve Bank of India (RBI) Governor Shaktikanta Das’ statement that central bank is quite optimistic about its 9.5 percent GDP growth estimate coming true for FY22, and will take steps to gradually move for a cool off in headline inflation to its 4 per cent target. He said the growth will keep rising from a sequential perspective with every quarter, and expected the September quarter to be better than June. Traders also remained on sidelines ahead of the Consumer Price Index (CPI) data scheduled to be released later today.

On the global front, Asian markets were trading mostly in red as traders continue to express concerns that the surge coronavirus cases in the region and other countries, particularly in the U.S., could dent the pace of global economic recovery from the pandemic. Back home, on the sectoral front, power stocks remained in focus as power ministry data showed that India's power consumption grew 5.45 per cent in the first week of September to 27.41 billion units (BU), showing consistent recovery after easing of lockdown curbs by states.

The BSE Sensex is currently trading at 58069.06, down by 236.01 points or 0.40% after trading in a range of 57944.63 and 58314.64. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.15%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were Telecom up by 0.68%, Utilities up by 0.44%, Metal up by 0.39%, TECK up by 0.39% and IT up by 0.38%, while Energy down by 1.51%, Bankex down by 0.74%, Oil & Gas down by 0.64%, Auto down by 0.47% and Capital Goods down by 0.34% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.29%, TCS up by 1.22%, Maruti Suzuki up by 0.68%, ITC up by 0.68% and HDFC up by 0.53%. On the flip side, Reliance Industries down by 1.96%, ICICI Bank down by 1.79%, Mahindra & Mahindra down by 1.14%, Bajaj Finserv down by 0.69% and Bajaj Finance down by 0.60% were the top losers.

Meanwhile, Reserve Bank of India (RBI) Governor Shaktikanta Das said that central bank is quite optimistic about its 9.5 percent GDP growth estimate coming true for FY22, and will take steps to gradually move for a cool off in headline inflation to its 4 per cent target. He said the growth will keep rising from a sequential perspective with every quarter, and expected the September quarter to be better than June. He said the only uncertainty is the possibility of a third wave and added that businesses and companies have not learnt how to deal with the impact of such disruptions.

RBI Governor said the RBI had decided to use the 2 percentage point cushion to keep the inflation within the 2-6 per cent target band as a result of the pandemic to push growth, and added that the Monetary Policy Committee (MPC) will take a call on continuing with the accommodative stance. He noted that as a result of high inflation, which also breached the 6 per cent band in between, the RBI has been maintaining a status quo on rates for over a year now and calls for higher attention to its core mandate of price rise are growing.

Besides, Das said fast moving indicators on the economy are 'upbeat' after the reverses faced as a result of the second wave of the pandemic beginning in mid-April. Pointing out that the high price of diesel and petrol at filling stations is among the factors pushing inflation, he said the RBI is engaged with the government on such issues and also noted the government's measures to reduce prices of edible oils and pulses.

The CNX Nifty is currently trading at 17299.55, down by 69.70 points or 0.40% after trading in a range of 17269.15 and 17375.50. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Coal India up by 2.29%, Hindalco up by 2.16%, Bharti Airtel up by 1.41%, TCS up by 1.20% and Wipro up by 0.94%. On the flip side, Reliance Industries down by 2.07%, ICICI Bank down by 1.89%, HDFC Life Insurance down by 1.74%, SBI Life Insurance down by 1.25% and Eicher Motors down by 1.16% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 73.44 points or 0.24% to 30,308.40, Hang Seng decreased 519.00 points or 1.98% to 25,686.91, Taiwan Weighted dropped 36.45 points or 0.21% to 17,438.12, Jakarta Composite lost 40.05 points or 0.66% to 6,054.82, KOSPI fell 9.03 points or 0.29% to 3,116.73 and Straits Times trembled 29.62 points or 0.96% to 3,069.18. On the flip side, Shanghai Composite gained 3.62 points or 0.1% to 3,706.73.