Domestic markets extend opening losses in early deals

Indian equity benchmarks started the session in red on Wednesday tracking weakness in global markets. Soon markets extended their losses and are trading with cut of over 0.80% each in early deals due to selling in IT, Realty and TECK stocks. High oil prices and sustained FII outflows also weighted down on investors’ sentiments. Traders were concerned with a private report that the third wave of the COVID-19 pandemic is likely to peak in India on January 23 when the country will record nearly 7.2 lakh cases per day. Some cautiousness also came in as the SBI Business Activity Index declined to 101 as on January 17 from 109 in the week ended January 10. The latest reading, even as the country is in the midst of the third wave of the pandemic, is the lowest since November 15.

Weakness in global markets too dampened the sentiments in the markets. most of the Asian markets are trading lower  following the broadly negative cues overnight from Wall Street, as US Treasury yields surged higher amid expectations the Federal Reserve will start hiking interest rate as soon as March. Lingering worries about the surge in cases of the Omicron variant of the coronavirus in several countries contribute as well to the bearish mood in the market.

Back home, Housing finance companies stocks were in focus as Crisil Ratings said the third wave of Covid-19 could shave up to 200 basis points (bps) off from the growth in assets of housing finance companies (HFCs) in the current and next financial year (FY23). In scrip specific development, Bajaj Finance traded jubilantly as it reported a sharp 85 per cent surge in consolidated net profit to Rs 2,125 crore in the October-December quarter, beating Street estimates.

The BSE Sensex is currently trading at 60241.96, down by 512.90 points or 0.84% after trading in a range of 60194.94 and 60870.17. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.08%, while Small cap index was down by 1.04%.

The only gaining sectoral indices on the BSE were Metal up by 0.22%, Oil & Gas up by 0.21%, while IT down by 1.80%, Realty down by 1.72%, TECK down by 1.62%, Healthcare down by 1.33%, Industrials down by 1.10% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 2.42%, Bajaj Finserv up by 1.08%, Tata Steel up by 0.45% and Power Grid up by 0.37%. On the flip side, Wipro down by 2.24%, Infosys down by 2.14%, Asian Paints down by 2.10%, HCL Technologies down by 2.01% and Tech Mahindra down by 1.77% were the top losers.

Meanwhile, intending to assimilate and develop further on the core strengths, experience, and institutional objectives in the interest of advancement of research, study, documentation, and training for development of the cooperative sector, India has signed an agreement with the International Co-Operative Alliance Asia and Pacific (ICAAP).

India has more than eight lakh registered cooperative societies, especially in the agricultural and agri-allied sector, banking, and housing sectors. The cooperative movement in the country has regained focus after the Central Government recently created the Ministry of Cooperation to provide a separate administrative legal and policy framework for streamlining the cooperatives.

ICAAP president Dr Chandra Pal Singh Yadav and National Cooperative Union of India (NCUI) president Dileep Sanghani jointly released a policy recommendation handbook 'Sahakar Pragya: Good Practices for Cooperatives' based on a 'Brain Storming Session on International Good Practices Platform for Cooperatives' conducted earlier by LINAC, NCDC.

A compendium of guidelines, resources, methodologies, key learning, case studies of the best performing cooperatives in India and abroad and the outcome and impact, the handbook would serve as an action plan that can help these entities to achieve the goal of self-reliance. This handbook is expected to help cooperatives in India and abroad to innovate and adopt best models not only to stay competitive, but also distinguish themselves as successful commercial entities. Some of the best practices are from milk, credit, and banking co-operatives in the handbook.

The CNX Nifty is currently trading at 17964.60, down by 148.45 points or 0.82% after trading in a range of 17950.25 and 18129.20. There were 9 stocks advancing against 41 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 2.54%, ONGC up by 1.83%, Bajaj Finserv up by 1.41%, Coal India up by 1.15% and Hero MotoCorp up by 0.72%. On the flip side, Adani Ports & SEZ down by 2.10%, Asian Paints down by 2.09%, Wipro down by 2.02%, Infosys down by 2.01% and Ultratech Cement down by 1.96% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 670.33 points or 2.37% to 27,586.92, Taiwan Weighted lost 137.55 points or 0.75% to 18,241.09, KOSPI declined 25.92 points or 0.90% to 2,838.32, Jakarta Composite fell 10.55 points or 0.16% to 6,603.51 and Shanghai Composite was down by 10.22 points or 0.29% to 3,559.69. On the other hand, Straits Times added 3.63 points or 0.11% to 3,283.67 and Hang Seng was up by 10.71 points or 0.04% to 24,123.49.