Weak trade continues over Dalal Street

Weak trade continued over Dalal Street in late morning session, with both Sensex and Nifty trading in red terrain. Negative cues from other Asian markets impacted domestic sentiments. Some worries also came with Rating agency Crisil’s statement that States' indebtedness will remain high this fiscal at 33 per cent, which is only a notch below the record high of 34 per cent of their gross domestic products in FY21, as tax buoyancy will be offset by higher revenue expenditure and capital outlays. Traders ignored reports that Sebi approved frameworks for gold and social stock exchanges, and changes to delisting norms to make M&As more rational as well as to superior voting rights and various other proposals, mainly aimed at deepening the securities market.

On the global front, Asian markets were trading mostly in red, after Hong Kong's merchandise exports grew at a softer pace in August. The data from the Census and Statistics Department showed that exports rose 25.9 percent year-on-year in August, after a 26.9 percent increase in July. Imports gained 28.1 percent annually in August, after a 26.1 percent increase in the previous month.

The BSE Sensex is currently trading at 59269.34, down by 398.26 points or 0.67% after trading in a range of 59111.41 and 59419.01. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.54%, while Small cap index was up by 0.19%.

The top gaining sectoral indices on the BSE were Utilities up by 3.10%, Power up by 2.84%, PSU up by 2.44%, Realty up by 2.10% and Oil & Gas up by 1.17%, while Bankex down by 0.91%, IT down by 0.47%, Auto down by 0.42%, TECK down by 0.41% and FMCG down by 0.36% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 5.61%, Power Grid up by 2.72%, SBI up by 1.82%, Sun Pharma up by 1.33% and Dr. Reddy's Lab up by 1.31%. On the flip side, Tech Mahindra down by 1.92%, Kotak Mahindra Bank down by 1.85%, HDFC Bank down by 1.71%, ICICI Bank down by 1.70% and Ultratech Cement down by 1.70% were the top losers.

Meanwhile, government has again extended the existing foreign trade policy (FTP) for another six months till March 31 next year. Earlier, it had extended the FTP (2015-20) until September 30 this year due to the COVID-19 crisis.

FTP provides guidelines for enhancing exports to push economic growth and create jobs. Under FTP, the government provides incentives under different schemes such as Duty Free Import Authorisation (DFIA) and Export Promotion Capital Goods (EPCG).

The directorate general of foreign trade (DGFT) said ‘the existing FTP 2015-2020, which is valid up to September 30, 2021 is extended up to March 31, 2022. On March 31, 2020, the government had extended FTP (2015-20) for one year till March 31, 2021, amid the coronavirus outbreak and the lockdown. Exports during April-September 21, 2021, stood at over $185 billion.

The CNX Nifty is currently trading at 17675.40, down by 73.20 points or 0.41% after trading in a range of 17608.15 and 17689.30. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Coal India up by 8.16%, NTPC up by 5.65%, Indian Oil Corp. up by 3.46%, Power Grid up by 2.61% and ONGC up by 2.29%. On the flip side, Tech Mahindra down by 1.88%, Kotak Mahindra Bank down by 1.85%, ICICI Bank down by 1.80%, Ultratech Cement down by 1.79% and HDFC Bank down by 1.52% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 812.05 points or 2.69% to 29,371.91, Straits Times fell 0.54 points or 0.02% to 3,077.15, Hang Seng lost 111.63 points or 0.46% to 24,388.76, Taiwan Weighted declined 318.60 points or 1.85% to 16,862.84, KOSPI plunged 60.48 points or 1.95% to 3,037.44 and Shanghai Composite was down by 64.62 points or 1.79% to 3,537.60, while Jakarta Composite added 10.18 points or 0.17% to 6,123.29.