Markets magnify previous session’s losses with negative start

With a negative start Indian equity markets have extended their previous session’s losses. Markets are trading lower with cut of around quarter a percent in early deals on Wednesday tracking weakness in other Asian markets. However, the session was productive for broader indices, which are trading with gains in the range of 0.19-0.35%. There were cautiousness as Fitch Ratings kept India's sovereign rating unchanged at 'BBB-' with a negative outlook, and said that the rating balances a still-strong medium-term growth outlook and external resilience from solid foreign-reserve buffers against high public debt, a weak financial sector and some lagging structural issues. It said the country’s rapid economic recovery from the Covid-19 pandemic and easing financial sector pressures are narrowing risks to the medium-term growth outlook. Further, weakness also prevailed in the markets as foreign portfolio investors (FPIs) sold shares worth Rs 560.67 crore, in the Indian equity market on 16 November, provisional data showed.

On the global front, Asian markets are mostly trading lower on Wednesday despite positive cues from US markets. The US markets ended higher on Tuesday after positive retail data. Commerce Department report showed retail sales shot up by more than expected in the month of October. The report said retail sales spiked by 1.7 percent in October after climbing by an upwardly revised 0.8 percent in September. Back home, there were some buzz in Gem and Jewellery stocks as Gem and Jewellery Export Promotion Council (GJEPC) has said the gem and jewellery exports witnessed a growth of 45.2 per cent during October at Rs 31,241.09 crore (USD 4,170.59 million) compared to the same month last year due to strong demand from key markets, led by the US. In the stock specific development, shares of Apollo Hospitals Enterprises continued their upward march, with the stock hitting a fresh record high of Rs 5,460. It has surged 20 per cent in the past four days after the company reported a strong set of numbers for the quarter ended September 2021 (Q2FY22). 

 The BSE Sensex is currently trading at 60185.97, down by 136.40 points or 0.23% after trading in a range of 60029.21 and 60208.40. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.19%, while Small cap index up by 0.35%.

The top gaining sectoral indices on the BSE were Auto up by 1.03%, Power up by 0.68%, Utilities up by 0.65%, Consumer Discretionary up by 0.58% and Industrials up by 0.36%, while Energy down by 0.85%, Realty down by 0.56%, Bankex down by 0.48%, Oil & Gas down by 0.38% and Basic Materials down by 0.27% were the losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.10%, NTPC up by 1.56%, Power Grid up by 1.07%, Maruti Suzuki up by 1.02% and Mahindra & Mahindra up by 0.91%. On the flip side, HDFC down by 1.24%, Reliance Industries down by 1.12%, Dr. Reddy's Lab down by 1.11%, HDFC Bank down by 0.84% and Axis Bank down by 0.81% were the top losers.

Meanwhile, noting India attracted ‘record’ foreign direct investments (FDI) in the last seven years, Commerce and Industry Minister Piyush Goyal has said this trend is expected to continue in the coming years as well on account of major structural reforms being undertaken by the government. He also said that India is focusing on integrating its quality standards with the world and the country needs to let go of the mindset of a particular product being for the domestic market and others for the export market.

He said ‘Last seven years, we have seen record FDIs (Foreign Direct Investments). I hope to see that continue, looking at major structural reforms being undertaken. This pick-up in economic activity is here to stay and the future looks to be extremely bright’. FDI inflows into the country rose 62 per cent to $27 billion during April-July period of the current fiscal.

On Free Trade Agreements (FTAs), the minister said India is negotiating such pacts with countries, including UAE, Australia, UK, European Union (EU), Israel, and GCC ( Gulf Cooperation Council)) group. He said ‘We will have an FTA with UAE in next 60-100 days, an interim agreement with Australia probably around the same time. With the EU, work should start soon (as) they have recently appointed a lead negotiator and we are working to start with Canada’.

The CNX Nifty is currently trading at 17963.40, down by 35.80 points or 0.20% after trading in a range of 17906.60 and 17969.50. There were 28 stocks advancing against 22 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 2.76%, Asian Paints up by 1.97%, NTPC up by 1.82%, SBI Life Insurance up by 1.44% and Tata Consumer Products up by 1.39%. On the flip side, HDFC down by 1.38%, Reliance Industries down by 1.31%, UPL down by 1.16%, Dr. Reddy's Lab down by 1.03% and HDFC Bank down by 0.90% were the top losers.

Asian markets are trading mostly in red; Hang Seng decreased 122.23 points or 0.48% to 25,591.55, Nikkei 225 slipped 111.75 points or 0.37% to 29,696.37, Straits Times trembled 9.54 points or 0.29% to 3,229.26 and KOSPI was down by 28.87 points or 0.96% to 2,968.34. On the other hand, Taiwan Weighted strengthened 42.84 points or 0.24% to 17,735.97, Jakarta Composite soared 10.58 points or 0.16% to 6,661.79 and Shanghai Composite was up by 7.47 points or 0.21% to 3,529.26.