Sensex, Nifty continue sluggish trade in morning deals

The local equity benchmarks continued their sluggish trade in morning session, led by losses in Telecom, Auto and Healthcare stocks. The sentiments remained downbeat with Crisil Ratings’ report stated that securitisation volume growth slowed to around 8 percent on year to Rs 29,000 crore in the quarter ended December 31, 2021 (Q3FY22), on higher risk aversion amid the third wave of COVID-19. Traders were cautious with private report stated that the fast-spreading third wave of COVID-19 has undone the gains achieved due to resumption of business since the end of the lethal second wave last year.  Market participants overlooked Commerce and Industry Minister Piyush Goyal’s statement that the country is on track to achieve the $650-billion export target set for goods and services in the ongoing fiscal year (FY22).

On the global front, Asian markets were trading mixed, as traders remain concerned over the domestic Covid-19 cases, though the daily new cases are on a slight decline, but deaths are increasing. Back home, on the sectoral front, stocks related to airline industry remained in focus with Crisil’s report warned that hit by the third wave of the COVID-19 pandemic and soaring fuel prices, airlines are flying towards record losses with a likely loss of a whopping Rs 20,000 crore for the full fiscal year. Besides, telecom industry’s stocks remained in action as the Department of Telecom amended telecom licences to enable service providers to roll out machine-to-machine communication -- a service which is considered as a key driver of 5G adoption -- in the country.

The BSE Sensex is currently trading at 61041.25, down by 267.66 points or 0.44% after trading in a range of 60948.04 and 61475.15. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.78%, while Small cap index was down by 0.64%.

The top gaining sectoral indices on the BSE were Bankex up by 0.36% and Realty up by 0.34%, while Telecom down by 1.59%, Auto down by 1.24%, Basic Materials down by 1.22%, Healthcare down by 1.06% and Metal down by 0.85% were the top losing indices on BSE.

The top gainers on the Sensex were Axis Bank up by 1.68%, HDFC Bank up by 0.64%, Kotak Mahindra Bank up by 0.25%, Power Grid Corporation up by 0.19% and Bajaj Finance up by 0.16%. On the flip side, Maruti Suzuki down by 2.71%, Ultratech Cement down by 2.24%, Tech Mahindra down by 1.77%, HCL Technologies down by 1.51% and Tata Steel down by 1.39% were the top losers.

Meanwhile, Reserve Bank of India’s (RBI) article has said that India's overall economic activity remains strong, driven by an upbeat consumer confidence and uptick in bank credit, and expectations that Omicron may turn out to be a flash flood rather than a wave have further brightened the prospects. It stated, on the vaccination front, India has made rapid strides. On the Omicron variant, the recent data from the UK and South Africa suggest that such infections are 66 to 80 per cent less severe, with a lower need for hospitalization.

It mentioned that there are indications that supply chain disruptions and shipping costs are slowly easing, although the waning of inflation may take longer. This provides a window of opportunity to focus all energies on accelerating and broadening the global recovery.

It also said that data for early January 2022 (up to January 12) indicate growth in digital payments, although the recent surge in infections may pose a concern going forward. Nevertheless, the payment industry is expected to display resilience owing to availability of varied checkout options and rising digital. The central bank said the views expressed in the article are those of the authors and do not necessarily represent the views of the Reserve Bank of India.

The CNX Nifty is currently trading at 18204.80, down by 103.30 points or 0.56% after trading in a range of 18186.20 and 18350.95. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 1.69%, BPCL up by 1.06%, HDFC Bank up by 0.66%, Indian Oil Corporation up by 0.16% and Bajaj Finance up by 0.13%. On the flip side, Eicher Motors down by 3.32%, Maruti Suzuki down by 2.71%, Tata Consumer Product down by 2.46%, Ultratech Cement down by 2.33% and UPL down by 1.90% were the top losers.

Asian markets were trading mixed; Jakarta Composite lost 93.45 points or 1.41% to 6,551.60, Taiwan Weighted dropped 92.29 points or 0.5% to 18,433.15, Nikkei 225 slipped 58.21 points or 0.21% to 28,275.31, Hang Seng decreased 34.49 points or 0.14% to 24,183.54 and KOSPI fell 24.45 points or 0.85% to 2,865.65.

On the flip side, Straits Times advanced 6.88 points or 0.21% to 3,294.83 and Shanghai Composite gained 33.22 points or 0.94% to 3,574.89.