Key indices remain in red in morning deals

Indian equity benchmarks remained in red in morning deals tracking losses in index majors Indusind Bank, Reliance Industries and Asian Paints. The broader markets, however, reversed their losses and were trading in the green with the BSE MidCap and SmallCap indices up 0.41 percent and 0.15 percent, respectively. Sentiments remained downbeat with a private report that the excise duty cuts on diesel and petrol will cost Rs 45,000 crore and lead to a 0.3 percentage point widening in the Centre’s fiscal deficit. However, losses remain capped as traders took some support with State Bank of India (SBI) Chairman Dinesh Kumar Khara’s statement that India is ready to move into the next orbit of growth with the hugely successful implementation of the COVID-19 vaccination program. Meanwhile, the Finance Ministry has asked for suggestions on taxation from industries and trade bodies for Budget 2022-23, which is going to set the tone for the growth of India's economy hit by the COVID-19 pandemic.

On the global front, Asian markets were trading mostly in green as risk assets basked in the glow of the upbeat October payrolls report, though caution was warranted ahead of a reading on U.S. inflation that could spook the rate horses. Back home, on the sectoral front, power stocks remained in action as Coal dispatch to the power sector has increased by 27.13 per cent to 59.73 million tonnes (MT) in October, owing to a spurt in power demand amid unprecedented rise in import prices.

The BSE Sensex is currently trading at 59902.68, down by 164.94 points or 0.27% after trading in a range of 59779.19 and 60434.38. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.41%, while Small cap index was up by 0.15%.

The top gaining sectoral indices on the BSE were Consumer Durables up by 0.94%, Telecom up by 0.90%, Realty up by 0.86%, Capital Goods up by 0.83% and Basic Materials up by 0.72%, while Healthcare down by 1.36%, Bankex down by 1.02%, Energy down by 0.83%, FMCG down by 0.41% and Metal down by 0.05% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 4.24%, Titan Co up by 2.20%, Tech Mahindra up by 1.71%, Bharti Airtel up by 1.36% and Kotak Mahindra Bank up by 1.04%. On the flip side, Indusind Bank down by 11.68%, Reliance Industries down by 1.55%, Asian Paints down by 1.47%, Mahindra & Mahindra down by 1.38% and Axis Bank down by 1.07% were the top losers.

Meanwhile, the Centre has reduced the excise duty levied on petrol and diesel. While the excise duty on per litre of petrol has been reduced by Rs 5, the same has been brought down on diesel by Rs 10. The new prices has came into effect from November 4.

It said the reduction in excise duty on diesel will be double that of petrol. The Indian farmers have, through their hard work, kept the economic growth momentum going even during the lockdown phase and the massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season.

The reduction in excise duty on petrol and diesel will also boost consumption and keep inflation low, thus helping the poor and middle classes. Decision is expected to further spur the overall economic cycle. The Centre had been levying excise duties and cess of Rs 32.90 per litre on petrol and Rs 31.80 per litre on diesel. For context, the central excise duty on diesel was Rs 3.56 per litre in 2014.

The CNX Nifty is currently trading at 17865.35, down by 51.45 points or 0.29% after trading in a range of 17836.10 and 18040.20. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Ultratech Cement up by 4.05%, Grasim Industries up by 2.48%, Titan Company up by 2.27%, Indian Oil Corp. up by 1.82% and Tech Mahindra up by 1.66%. On the flip side, Indusind Bank down by 12.37%, Divi's Lab down by 7.91%, Hindalco down by 1.91%, Reliance Industries down by 1.56% and Asian Paints down by 1.53% were the top losers.

Asian markets were trading mostly in green; Shanghai Composite gained 3.47 points or 0.1% to 3,495.04, Straits Times advanced 14.67 points or 0.45% to 3,257.01, Jakarta Composite soared 45.79 points or 0.7% to 6,627.58 and Taiwan Weighted strengthened 65.71 points or 0.38% to 17,362.61.

On the flip side, Hang Seng decreased 141.88 points or 0.57% to 24,728.63, Nikkei 225 slipped 79.70 points or 0.27% to 29,531.87 and KOSPI fell 20.01 points or 0.67% to 2,949.26.