Bourses widen losses in late afternoon session

Indian equity benchmarks widened their losses in late afternoon session. Losses in Realty, PSU and Bankex shares pulled the indices lower. The broader indices, BSE Mid cap index and Small cap index were also trading in red. Traders overlooked report that India’s GDP will rise by $406 billion by 2050 and more than 43 million jobs will be created, as the Asia’s third-largest economy leaps towards a net-zero target. On the sectoral front, automobile sector remained in focus, as 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.

On the global front, Asian markets were trading mostly in green even after unemployment rate in Australia increased to a seasonally adjusted 5.2 percent in October. That was well above expectations for 4.8 percent and up from 4.6 percent in September. European markets were trading mostly in green despite data showing a spike in U.S. inflation encouraged bets on interest rate hikes and offset some optimism around property developer China Evergrande and a slew of corporate earnings.

The BSE Sensex is currently trading at 59726.67, down by 626.15 points or 1.04% after trading in a range of 59706.55 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 declined 0.96%, while Small cap index was down by 0.61%.

The only gaining sectoral indices on the BSE were Metal up by 0.40% and Consumer Durables was up by 0.29%, while Realty down by 2.72%, PSU down by 1.81%, Bankex down by 1.46%, Auto down by 1.34% and Telecom was down by 1.30% were the top losing indices on BSE.

The only gainers on the Sensex were Titan Company up by 1.15%, Reliance Industries up by 0.24% and Tata Steel up by 0.18%. On the flip side, Tech Mahindra down by 2.95%, SBI down by 2.94%, Bajaj Finserv down by 2.48%, Bajaj Finance down by 2.11% and NTPC down by 2.04% were the top losers.

Meanwhile, the finance ministry in its latest report has said that armed with necessary macro and micro growth drivers, the stage is set for India's investment cycle to kickstart and catalyse its recovery towards becoming the fastest growing economy in the world.

According to the monthly Economic Review prepared by the ministry, rapid vaccination and teeming festivities will push India's ongoing recovery resulting in narrowing of demand-supply mismatches and greater employment opportunities.

The finance ministry’s report also noted that agricultural sector continues its strong presence in economic recovery with higher acreage of Rabi sowing, improved reservoir levels, and adequate availability of fertilisers and seeds ensured by the government.

The report also noted that Aatmanirbhar Bharat Mission encapsulating major structural reforms continues to play a critical role in shaping India's economic recovery, both through the signalling of business opportunities and expansion of spending channels.Besides, the report said that softening retail inflation and adequate liquidity in the market are also reflected in largely stable G-Sec and corporate bond yields since July 2021.

The CNX Nifty is currently trading at 17819.85, down by 197.35 points or 1.10% after trading in a range of 17812.80 and 17971.35. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 1.42%, Hindalco up by 1.17%, JSW Steel up by 0.77%, Tata Steel up by 0.42% and Reliance Industries up by 0.22%. On the flip side, Indian Oil down by 4.52%, Tech Mahindra down by 3.12%, SBI down by 2.89%, Bajaj Finserv down by 2.48% and ONGC down by 2.41% were the top losers.

Asian markets were trading mostly in green, Hang Seng increased 251.85 points or 1.01% to 25,247.99, Nikkei 225 surged 171.08 points or 0.59% to 29,277.86, Shanghai Composite gained 40.33 points or 1.15% to 3,532.79, Jakarta Composite soared 8.19 points or 0.12% to 6,691.34 and Straits Times was up by 2.18 points or 0.07% to 3,233.50. On the flip side, KOSPI fell 5.25 points or 0.18% to 2,924.92 and Taiwan Weighted was down by 107.13 points or 0.61% to 17,452.52.

European markets were trading mostly in green, UK’s FTSE 100 increased 22.43 points or 0.31% to 7,362.58, France’s CAC increased 12.51 points or 0.18% to 7,057.67 and Germany’s DAX was down by 3.93 points or 0.02% to 16,063.90.