Benchmarks trim losses in noon deals

Indian equity benchmarks trimmed most of their losses in afternoon session, but continue to trade below the neutral lines. Sensex and Nifty were trading below 60700 and 18100 levels, respectively. Traders were worried as Finance Secretary T V Somanathan said that the entire revenue loss on account of reduction in excise duty on petrol and diesel by Rs 10 and Rs 5 a litre respectively will be borne by the Centre. However, downfall remain capped with 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. Meanwhile, foreign institutional investors (FIIs) stood as net buyers in the capital market, as they purchased shares worth Rs 424.74 crore on Monday, as per exchange data. On the global front, Asian markets were trading mixed after President Joe Biden and China's Xi Jinping held a summit meeting by video link. The two leaders met amid tension over trade, technology and human rights. Back home, initial public offering (IPO) of Life Sciences Company ‘Tarsons Products’ was subscribed 1.31 times so far on Tuesday.

The BSE Sensex is currently trading at 60644.07, down by 74.64 points or 0.12% after trading in a range of 60405.74 and 60802.79. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.32%, while Small cap index was up by 0.62%.

The top gaining sectoral indices on the BSE were Auto up by 1.53%, Consumer Discretionary up by 0.93%, IT up by 0.72%, Power up by 0.68% and Telecom was up by 0.63%, while Energy down by 1.01%, Bankex down by 0.49%, Oil & Gas down by 0.39%, PSU down by 0.23% and FMCG was down by 0.14% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 4.25%, Bajaj Finserv up by 1.72%, Bajaj Finance up by 1.48%, Power Grid up by 1.43% and Asian Paints was up by 0.93%. On the flip side, Reliance Industries down by 1.34%, SBI down by 1.03%, NTPC down by 0.88%, HDFC down by 0.62% and Hindustan Unilever was down by 0.59% were the top losers.

Meanwhile, RBI Deputy Governor Michael Debabrata Patra has said that India is better positioned currently, as its macroeconomic fundamentals have improved significantly, and external sector indicators point to the availability of enough cushions to manage external shocks. He also said India will have to use its macroeconomic strength to neutralise external sector threats.

The deputy governor said ‘I present this strength (macroeconomic fundamentals) as a challenge because the international environment is turning hostile, with geopolitical tensions, the long-lasting scars of COVID and the inevitability of climate change.’ Furthermore, he said countries all over the world are contemplating shifting their policy stances away from a pandemic mode to a more normal one. This will involve global spillovers to which India cannot be immune. Hence external sector viability is critical.’

He further said India is currently one of the fastest-growing major economies in the world. In purchasing power parity (PPP) terms, India is the third-largest economy in the world. He said ‘Projections show that by 2040 India will be the second-largest economy in the world. This, in my view, is the final challenge - preparing, with the BRICS, to be a global economic powerhouse.’

The CNX Nifty is currently trading at 18089.70, down by 19.75 points or 0.11% after trading in a range of 18023.95 and 18132.65. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Maruti Suzuki up by 4.20%, Tata Motors up by 2.66%, Hero MotoCorp up by 2.02%, Bajaj Finserv up by 1.70% and Power Grid was up by 1.49%. On the flip side, Shree Cement down by 1.90%, Reliance Industries down by 1.27%, Hindalco down by 1.16%, BPCL down by 1.14% and NTPC was down by 1.02% were the top losers.

Asian markets were trading mixed; Hang Seng increased 313.06 points or 1.23% to 25,703.97, Nikkei 225 surged 31.32 points or 0.11% to 29,808.12, Taiwan Weighted strengthened 58.66 points or 0.33% to 17,693.13 and Jakarta Composite was up by 21.96 points or 0.33% to 6,637.99. On the flip side, Straits Times trembled 0.24 points or 0.01% to 3,240.34, KOSPI fell 2.31 points or 0.08% to 2,997.21 and Shanghai Composite was down by 3.43 points or 0.1% to 3,529.87.