Benchmarks remain in red terrain in morning deals

Indian equity benchmarks remained in red terrain in morning deals, amid selling in frontline bluechip counters despite positive cues from global markets. Traders overlooked Reserve Bank Deputy Governor Michael Debabrata Patra’s statement that India is better positioned to face external shocks emanating from increasing geopolitical tensions, the aftermath of the COVID pandemic and the inevitability of climate change. Traders also took a note of Finance Minister Nirmala Sitharaman urged states to help India become the fastest growing economy in coming years, through attractiveness as an investment destination, expediting ease of doing business and undertaking power reforms. Sectorally, stocks related to steel industry remained in watch as Union Steel Minister Ram Chandra Prasad Singh said the domestic steel consumption is expected to touch the 160-million tonne (MT) mark by the financial year 2024-25. During the financial year 2020-21, the total finished steel consumption in the country was at 96.2 MT, and the same is expected to reach about 160 MT by 2024-25, and about 250 MT by 2030-31. On the global front, Asian markets were trading mostly in green as relief in China's property sector supported sentiment while investors also kept a close eye on a key meeting between U.S. President Joe Biden and Chinese leader Xi Jinping.

The BSE Sensex is currently trading at 60522.31, down by 196.40 points or 0.32% after trading in a range of 60433.88 and 60802.79. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.39%, while Small cap index was up by 0.65%.

The top gaining sectoral indices on the BSE were Auto up by 1.28%, Metal up by 0.63%, Consumer Disc up by 0.62%, IT up by 0.56% and Industrials up by 0.48%, while Energy down by 1.28%, Bankex down by 0.52%, Oil & Gas down by 0.44%, Healthcare down by 0.14% and PSU down by 0.07% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 3.04%, Bajaj Finserv up by 0.83%, Bajaj Finance up by 0.75%, Infosys up by 0.55% and Mahindra & Mahindra up by 0.50%. On the flip side, Reliance Industries down by 1.64%, Asian Paints down by 1.22%, HDFC down by 1.00%, Kotak Mahindra Bank down by 0.90% and NTPC down by 0.62% were the top losers.

Meanwhile, in order to enable the states to step up their capex and spur economic growth close to double digits this fiscal year, Union Finance Minister Nirmala Sitharaman has said that the Centre will release Rs 95,082 crore as tax devolution to the states this month after including one advance instalment. She said ‘I have suggested the Finance Secretary that on November 22 instead of normal Rs 47,541 crore, the states be given one more instalment. So Rs 95,082 crore will be given to states on November 22.’

She added, so, with this, states will have more money in their hands so that they can consider spending it for infrastructure creation. She also said two states -- Madhya Pradesh and Sikkim -- asked for further relaxation in the Fiscal Responsibility and Budget Management (FRBM) Act. States are allowed to borrow from the markets to the extent that it does not increase their fiscal deficit beyond 3 per cent of their gross state domestic product (GSDP).

They can borrow 2 per cent more this fiscal year, 1 per cent with riders and 1 per cent is unconditional. Besides, finance Secretary T V Somanathan said currently, 41% of tax collected is devolved in 14 instalments and states have a predictability of their cash flows. He added this is an advance release, and any adjustments will be made in March.

The CNX Nifty is currently trading at 18064.30, down by 45.15 points or 0.25% after trading in a range of 18033.40 and 18132.65. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 2.92%, Tata Motors up by 2.71%, Hero MotoCorp up by 0.99%, Bajaj Finserv up by 0.70% and JSW Steel up by 0.68%. On the flip side, Reliance Industries down by 1.50%, Asian Paints down by 1.31%, Eicher Motors down by 1.11%, HDFC down by 1.03% and Kotak Mahindra Bank down by 1.02% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 316.06 points or 1.24% to 25,706.97, Taiwan Weighted strengthened 33.68 points or 0.19% to 17,668.15, Jakarta Composite soared 27.99 points or 0.42% to 6,644.02, Nikkei 225 surged 15.85 points or 0.05% to 29,792.65 and Shanghai Composite gained 11.16 points or 0.32% to 3,544.46.

On the flip side, Straits Times lost 2.11 points or 0.07% to 3,238.47 and KOSPI fell 5.72 points or 0.19% to 2,993.80.