Indian equity markets turn negative in late afternoon session

Indian equity markets turned negative in late afternoon session and are now trading with cut of around quarter a percent on weak opening of European markets. Sentiments were cautious after the Bombay Chamber of Commerce and Industry's survey found that an overwhelming number of exporters are worried about competitiveness as global trade picks up pace after the ravages of the pandemic. Besides, foreign institutional investors (FIIs) offloaded shares worth Rs 1,915.08 crore. On the global front, European markets were trading in red as Treasury yields extended an advance amid worries over inflation and higher interest rates. Asian markets were trading mostly in red as the impasse in the US Congress on raising the debt limit and avoiding a default before the October 18 deadline added to worries over inflation and higher interest rates. Back home, on sectoral front Oil & Gas and Bankex were trading higher, on the other hand, Metal, Healthcare, Consumer Durables, Realty and Industrials were trading lower. Stock specific development, TCS gained on extending partnership with SBI for five years.

The BSE Sensex is currently trading at 59594.43, down by 150.45 points or 0.25% after trading in a range of 59431.76 and 59963.57. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.70%, while Small cap index was up by 0.03%.

The gaining sectoral indices on the BSE were Oil & Gas up by 0.41% and Bankex up by 0.24%, while Metal down by 2.09%, Healthcare down by 1.21%, Consumer Durables down by 1.11%, Realty down by 1.07% and Industrials down by 0.92% were the losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 1.56%, HDFC up by 0.84%, Bajaj Finance up by 0.80%, Axis Bank up by 0.68% and Kotak Mahindra Bank up by 0.17%. On the flip side, Titan down by 2.07%, Indusind Bank down by 1.93%, HCL Technologies down by 1.79%, Sun Pharma down by 1.76% and Bajaj Auto down by 1.73% were the top losers.

Meanwhile, in a big relief to the telecom sector, the government is considering withdrawing legal cases against telecom companies, involving disputes of about Rs 40,000 crore. The Department of Telecom (DoT) has said that the telecom sector is passing through a financial stress due to various circumstances and telecom services providers are making losses.

It has cited representation from the Indian Banks' Association that adverse developments in the telecom sector may lead to failures, vanishing competition, duopoly, unsustainable operations and severe loss for the banking system which has a huge exposure to this sector.

DoT has asked the Supreme Court for three weeks' time to enable 'the central government to take an informed decision whether to proceed with the present appeal or not' and requested that the case be adjourned for a period of four weeks.

The CNX Nifty is currently trading at 17779.85, down by 42.45 points or 0.24% after trading in a range of 17715.35 and 17884.60. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Tata Consumer Products up by 3.77%, ONGC up by 3.24%, Britannia Industries up by 2.50%, UPL up by 2.32% and HDFC Bank up by 1.65%. On the flip side, Hindalco down by 3.31%, SBI Life Insurance down by 2.45%, Titan down by 2.09%, Coal India down by 2.07% and JSW Steel down by 2.05% were the top losers.

Asian markets were trading mostly in red; KOSPI fell 53.86 points or 1.82% to 2,908.31, Nikkei 225 slipped 293.25 points or 1.05% to 27,528.87, Hang Seng decreased 137.66 points or 0.57% to 23,966.49 and Taiwan Weighted dropped 67.59 points or 0.41% to 16,393.16. However, Jakarta Composite soared 129.27 points or 2.06% to 6,417.32 and Straits Times was up by 15.10 points or 0.49% to 3,083.22.

European markets were trading red, UK’s FTSE 100 fell 95.12 points or 1.34% to 6,981.98, France’s CAC dropped 119.32 points or 1.81% to 6,456.96 and Germany’s DAX was down by 314.38 points or 2.07% to 14,880.11.