Bourses trim losses in late afternoon session

Indian equity markets trimmed some of their losses in late afternoon session. The broader indices, the BSE Mid cap index and Small cap index were also trading with losses, while India VIX climbed 2% higher. Losses across most sectors, led by financial, IT and oil & gas shares, pulled the headline indices lower. Concerns about the increasing cases of the Omicron variant of COVID-19 persisted among investors globally. Besides, as COVID-19 infections spike in the country resulting in restrictions in various states and impacting the fragile recovery, many economists are expecting RBI to delay the policy normalisation move, which is expected in the February review. Traders took note that Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal called for transparency and the highest level of integrity in the stock markets, adding that this will empower households to look at greater incomes through investment besides encourage foreign investors.

On the global front, Asian markets were trading mostly in red and European markets were trading lower after the minutes from the Federal Reserve's most recent meeting suggested that most members of the committee were thinking interest rates would need to go higher, due to both inflation as well as a tight labor market which could be considered a sign of maximum employment.

The BSE Sensex is currently trading at 59564.65, down by 658.50 points or 1.09% after trading in a range of 59290.58 and 59781.86. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.26%, while Small cap index was down by 0.05%.

The few gaining sectoral indices on the BSE were Telecom up by 1.32%, Auto up by 0.45%, Oil & Gas up by 0.06% and Consumer Discretionary was up by 0.03%, while Realty down by 1.82%, IT down by 1.73%, TECK down by 1.39%, Energy down by 1.18% and Basic Materials was down by 0.80% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.46%, Indusind Bank up by 1.44%, Maruti Suzuki up by 1.19%, Bajaj Finance up by 0.93% and Titan Company up by 0.26%. On the flip side, Ultratech Cement down by 2.56%, Tech Mahindra down by 2.54%, HCL Tech down by 2.39%, HDFC down by 1.90% and Infosys down by 1.90% were the top losers.

Meanwhile, calling for transparency and the highest level of integrity in the stock markets, Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal has said that this will empower households to look at greater incomes through investment besides encourage foreign investors.
Goyal further said that India has earned respect globally, with its robust technical solutions for handling large trade volumes, adding that it is equally pertinent that all financial products pass through the prism of ‘Trust, Transparency & Accountability’ so that they can turn into a rainbow of colours for the investors.

Besides, the minister said that stock exchanges play a pivotal role in providing capital both to industry and service sector and channelize household savings & institutional flows for capital formation. Goyal also said that India is on the path of unprecedented economic growth. The rising economic indicators have showcased India and its true potential and capacity.

Underlining the benefits, Goyal said that capital markets can become a source of finance for productive purposes like Infrastructure & Agriculture, which can benefit a very large majority of the country’s population. He said that also, commodity derivative markets can be used to eliminate risks of farmers.

The CNX Nifty is currently trading at 17728.25, down by 197.00 points or 1.10% after trading in a range of 17655.55 and 17797.95. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were UPL up by 2.07%, Indusind Bank up by 1.63%, Bharti Airtel up by 1.35%, Eicher Motors up by 1.29% and Maruti Suzuki up by 1.11%. On the flip side, Shree Cement down by 2.90%, JSW Steel down by 2.86%, Ultratech Cement down by 2.70%, Tech Mahindra down by 2.69% and HCL Tech down by 2.41% were the top losers.

Asian markets were trading mostly in red, Nikkei 225 slipped 844.29 points or 2.88% to 28,487.87, Taiwan Weighted dropped 132.04 points or 0.71% to 18,367.92, KOSPI fell 33.44 points or 1.13% to 2,920.53, Shanghai Composite declined 9.10 points or 0.25% to 3,586.08 and Jakarta Composite was down by 8.95 points or 0.13% to 6,653.35. On the flip side, Straits Times advanced 17.91 points or 0.57% to 3,181.35 and Hang Seng was up by 165.61 points or 0.72% to 23,072.86.

European markets were trading lower, UK’s FTSE 100 decreased 71.72 points or 0.95% to 7,445.15, France’s CAC decreased 120.34 points or 1.63% to 7,256.03 and Germany’s DAX was down by 228.13 points or 1.4% to 16,043.62.