Markets remain subdued in afternoon trade

Indian bourses continued to trade in red terrain in afternoon session with Sensex and Nifty trading down by 456 and 151 points, respectively. Selling in frontline blue chip stocks such as HCL Tech, Indusind Bank and Infosys weighted down on the markets. Besides, broader indices were also trading in red, dragging their larger peers lower during the trade. Sentiments were fragile as country's foreign exchange reserves declined by $2.713 billion to $637.687 billion in the week to November 26, RBI data showed. In the reporting week ended November 26, the dip in the foreign exchange reserves was on account of a decline in foreign currency assets (FCA), a major component of the overall reserves and gold reserves. Traders were also worried as India Ratings and Research (Ind-Ra) stated that tightening of norms may increase non-banking finance companies' (NBFCs) headline non-performing advances (NPA) by around one third.

On the global front, Asian markets were trading mixed tracking uncertainty over the Omicron variant of Covid-19 as well as disappointing US jobs data and the future of Chinese tech firms on Wall Street. Back home, ahead of its proposed initial public offering (IPO), insurance behemoth LIC has improved its asset quality for the financial year ended March 2021. The non-performing assets (NPAs) as of March 31, 2021, are Rs 35,129.89 crore out of a total portfolio of Rs 4,51,303.30 crore, according to the latest Annual Report of Life Insurance Corporation of India (LIC).

The BSE Sensex is currently trading at 57240.19, down by 456.27 points or 0.79% after trading in a range of 57212.35 and 57781.46. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.45%, while Small cap index was down by 0.26%.

The only gaining sectoral index on the BSE was Realty up by 0.52%, while IT down by 1.91%, TECK down by 1.80%, Oil & Gas down by 0.90%, Auto down by 0.87% and Energy was down by 0.84% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC up by 0.76%, ICICI Bank up by 0.55%, Tata Steel up by 0.39% and Axis Bank was up by 0.10%. On the flip side, HCL Tech down by 2.84%, Indusind Bank down by 2.24%, Infosys down by 2.04%, Bajaj Finserv down by 1.99% and TCS was down by 1.99% were the top losers.

Meanwhile, Union Minister of Micro, Small and Medium Enterprises (MSME) Narayan Rane has urged Indian entrepreneurs to take advantage of closure of factories in China. He said Indian industrialists should start manufacturing the products which are no longer produced in China. He noted that China is number one in the world in terms of production and it is leading with 64 per cent share in global manufacturing. However, many companies are shutting down in that country.

The minister said 'we should also take up marketing and export of these products. At present, India's manufacturing share is nearly 6 percent. If we add another 10 per cent, our GDP would increase significantly. This will help the country become a super power’. He also said the latest machinery should be used for manufacturing the products which are no longer made in China, so that India can capture global markets by maintaining quality.

Rane also emphasized the importance of having an ‘industrial environment’. He said a flourishing industrial environment brings stability to society by providing innovative solutions and also inspires the younger generation to think creatively and dares them to take the plunge. Hence, he said the emphasis on MSME growth and sustenance is a must.

The CNX Nifty is currently trading at 17045.55, down by 151.15 points or 0.88% after trading in a range of 17041.50 and 17216.75. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.08%, JSW Steel up by 0.67%, HDFC up by 0.61%, ICICI Bank up by 0.49% and Hindalco was up by 0.47%. On the flip side, Coal India down by 5.85%, HCL Tech down by 2.76%, Indusind Bank down by 2.53%, Tata Consumer Products down by 2.42% and Wipro was down by 2.22% were the top losers.

Asian markets were trading mixed; Shanghai Composite declined 9.46 points or 0.26% to 3,597.97, Nikkei 225 slipped 102.20 points or 0.36% to 27,927.37, Hang Seng decreased 410.16 points or 1.73% to 23,356.53 and Taiwan Weighted was down by 8.93 points or 0.05% to 17,688.21.

On the other hand; KOSPI rose 4.92 points or 0.17% to 2,973.25, Straits Times advanced 29.51 points or 0.95% to 3,131.44 and Jakarta Composite was up by 39.51 points or 0.6% to 6,578.02.