Markets trade lower in early deals on weak global cues

Indian equity markets have made a gap-down start and are trading lower with cut of around half a percent in early deals on Monday, on the back of weak global cues, weighed down by losses in metal, auto, Basic Materials and Power shares. The session was also proving negative for broader indices. Sentiments were weak on report that the country’s foreign exchange reserves declined by USD 1.34 billion to USD 641.113 billion in the week ended September 10, 2021, according to RBI data. During the reporting week ended September 10, the fall in the reserves was on account of a decline in Foreign Currency Assets (FCAs), a major component of the overall reserves. Cautiousness also prevail in the markets with President Ram Nath Kovind’ statement the Covid pandemic hit the country's economy hard and the government has taken various fiscal measures to alleviate distress and help the poor.

On global front, Asian markets are trading lower on Monday on ahead of a week graced with no less than a dozen central bank meetings, highlighted by the Federal Reserve which is likely to take another step toward tapering. Japan, Taiwan and China markets are closed today. Back home, there were some buzz in Aviation stocks as the Ministry of Civil Aviation stated that airlines can now operate a maximum of 85 per cent of their pre-Covid domestic flights instead of the 72.5 per cent allowed till date.

The BSE Sensex is currently trading at 58741.75, down by 274.14 points or 0.46% after trading in a range of 58525.89 and 58741.75. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.86%, while Small cap index down by 0.75%.

The gaining sectoral indices on the BSE were FMCG up by 0.86%, IT up by 0.33% and TECK up by 0.29%, while Metal down by 3.90%, Basic Materials down by 2.20%, Power down by 1.52%, Auto down by 1.45%, Utilities down by 1.13% were the losing indices on BSE.

The top gainers on the Sensex were Hindustan Unilever up by 2.35%, ITC up by 1.19%, HCL Tech. up by 1.13%, Tech Mahindra up by 0.58% and TCS up by 0.55%. On the flip side, Tata Steel down by 5.50%, Bajaj Auto down by 2.08%, Indusind Bank down by 1.69%, HDFC down by 1.50% and Axis Bank down by 1.34% were the top losers.

Meanwhile, President Ram Nath Kovind has said the Covid-19 pandemic hit the country's economy hard. Kovind said the past 18 months have been very trying for the country. He stated the government has taken various fiscal measures for the welfare of the poor and alleviate distress.

He added ‘these are often financed through money, which may be said to have been borrowed from our children and grandchildren. We owe it to them that these scarce resources are put to best possible use and are most effectively used for the welfare of the poor, he said, adding that CAG has a very important role in this.’
He mentioned audit engagements provide a unique opportunity of gaining deep understanding of the system and place CAG in a good position of suggesting improvements.

The CNX Nifty is currently trading at 17507.30, down by 77.85 points or 0.44% after trading in a range of 17425.30 and 17507.75. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Hindustan Unilever up by 2.10%, HCL Tech. up by 1.20%, Tech Mahindra up by 1.09%, Divi's Lab up by 0.93% and TCS up by 0.79%. On the flip side, Tata Steel down by 6.01%, JSW Steel down by 3.70%, Hindalco down by 3.07%, UPL down by 2.01% and Bajaj Auto down by 1.97% were the top losers.

Asian markets are trading lower; Hang Seng dropped 974.82 points or 3.91% to 23,945.94, Straits Times fell 11.12 points or 0.36 % to 3,060.11 and Jakarta Composite lost 59.65 points or 0.97% to 6,073.60.