Key gauges extend losses; Sensex breaches 59,900 mark

Indian equity benchmarks extended losses with frontline gauges breaching their crucial 59,900 (Sensex) and 17,850 (Nifty) levels amid broad-based selling pressure, tracking weak Asian markets. Selling in realty and technology stocks too weighed on sentiment. Traders remain concerned over sustained foreign fund outflow. Foreign institutional investors (FIIs) were net sellers in the capital market, as they offloaded shares worth Rs 469.50 crore on November 10, 2021. Traders shrugged off Finance Ministry’s latest economic report stating that India’s economic recovery has continued to trend upwards even as global economic recovery remains hamstrung.

Weak global cues too dampened sentiments as inflation fears pressured Asian stocks and buoyed the dollar today after data overnight showed U.S. consumer prices surged at the fastest pace since 1990 last month, boosting the case for faster Federal Reserve policy tightening. US Treasury yields shot higher, with that on the benchmark 10-year note leaping by the most since February. Back home, the Indian rupee depreciated by 20 paise to 74.54 at day’s low against the US dollar, weighed down by a lacklustre trend in the domestic equity market and firm American dollar.

The BSE Sensex is currently trading at 59809.78, down by 543.04 points or 0.90% after trading in a range of 59744.60 and 60293.25. There were 3 stocks advancing against 27 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.74%, while Small cap index was down by 0.59%.

The only gaining sectoral indices on the BSE were Capital Goods up by 0.70% and Consumer Durables up by 0.12%, while Realty down by 1.83%, IT down by 1.27%, TECK down by 1.22%, PSU down by 1.15%, Oil & Gas down by 1.07% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.38%, Titan Company up by 1.10% and Tata Steel up by 0.03%. On the flip side, Tech Mahindra down by 2.71%, Bajaj Finserv down by 2.34%, HDFC down by 1.98%, HCL Technologies down by 1.46% and Sun Pharma down by 1.44% were the top losers.

Meanwhile, union minister Nitin Gadkari said the government is working on measures to increase the sales of electric vehicles and in the next two years the cost of EVs in India will drop to the level of petrol vehicles. Further, Gadkari said that to reduce import of fossil fuel, the government is encouraging use of alternate fuel like ethanol, CNG.

He said ‘We import 80 per cent plus of our petrol and diesel requirements. We import petrol and diesel worth Rs 8 lakh crore. If we will continue to depend on fossil fuels then in the next five years, our import bill will rise to Rs 25 lakh crore.’

He said that if fuel cost of a petrol vehicle per month is Rs 12,000-15,000, then in case of electric vehicle, it will be Rs 2,000. With an aim to promote eco-friendly vehicles, the government had launched the FAME India scheme (Faster Adoption and Manufacturing of (Strong) Hybrid and Electric Vehicles in India) in 2015.

The CNX Nifty is currently trading at 17842.85, down by 174.35 points or 0.97% after trading in a range of 17826.90 and 17971.35. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 1.26%, Titan Company up by 1.06%, Grasim Industries up by 0.41%, JSW Steel up by 0.29% and Tata Steel up by 0.18%. On the flip side, IOC down by 3.76%, Tech Mahindra down by 2.83%, ONGC down by 2.54%, Bajaj Finserv down by 2.48% and Eicher Motors down by 1.87% were the top losers.

Asian markets are trading mostly in red; Straits Times fell 0.04 points to 3,231.28, Hang Seng slipped 37.86 points or 0.15% to 24,958.28, Taiwan Weighted declined 124.76 points or 0.71% to 17,434.89, KOSPI lost 16.78 points or 0.57% to 2,913.39 and Jakarta Composite weakened 2.55 points or 0.04% to 6,680.60. On the other hand, Nikkei 225 rose 154.71 points or 0.53% to 29,261.49 and Shanghai Composite was up by 20.69 points or 0.59% to 3,513.15.