Key indices extend losses in morning deals

Indian equity benchmarks extended losses in morning deals, amid weakness across global markets. Sentiments remained down-beat with the Ministry of Statistics and Programme Implementation in its latest report has said that as many as 445 infrastructure projects, each entailing investment of Rs 150 crore or more, have been hit by cost overruns totalling more than Rs 4.4 lakh crore. It said reasons for time overruns as reported by various project implementing agencies include delay in land acquisition, delay in obtaining forest and environment clearances, and lack of infrastructure support and linkages. Traders overlooked the Services Export Promotion Council’s (SEPC) statement that it looks to set an export target of $300 billion for 2022-23 as it expects resumption of regular international travels and other business activities in the coming time.

On the global front, Asian markets were trading mostly in red as investors braced for a Federal Reserve meeting at which it is expected to confirm it will soon start draining the massive lake of liquidity that has supercharged growth stocks in recent years. Worries about the fast spreading coronavirus Omicron variant's impact on global economic growth continues to impact market sentiment. Back home, on the sectoral front, Gem and jewellery industry stocks remained in focus as the Gem and Jewellery Export Promotion Council said India's gem and jewellery exports during December 2021 grew 29.49 per cent to $3,040.92 million (Rs 22,914.6 crore) as compared to $2,348.44 million (Rs 16,712.46 crore) in December 2019 -- the pre-pandemic year.

The BSE Sensex is currently trading at 58358.81, down by 678.37 points or 1.15% after trading in a range of 58358.81 and 59023.97. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 2.34%, while Small cap index was down by 3.09%.

The top losing sectoral indices on the BSE were Realty down by 3.38%, Metal down by 2.97%, Basic Materials down by 2.79%, Consumer Durables down by 2.76% and Consumer Discretionary down by 2.58%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Sun Pharma up by 1.44%, Bharti Airtel up by 0.73%, ICICI Bank up by 0.66%, NTPC up by 0.63% and Indusind Bank up by 0.50%. On the flip side, Bajaj Finance down by 4.41%, Tech Mahindra down by 3.79%, Wipro down by 3.75%, Bajaj Finserv down by 3.16% and Tata Steel down by 3.14% were the top losers.

Meanwhile, former Reserve Bank of India (RBI) Governor Raghuram Rajan said the Indian economy has some bright spots and a number of very dark stains and the government should target its spending carefully so that there are no huge deficits. He mentioned the bright spots are the health of large firms, the roaring business the IT and IT-enabled sectors are doing, including the emergence of unicorns in a number of areas, and the strength of some parts of the financial sector.

On the other hand, he mentioned dark stains are the extent of unemployment and low buying power, especially amongst the lower middle-class, the financial stress small and medium-sized firms are experiencing, including the very tepid credit growth, and the tragic state of schooling.

He also said the government needs to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic. Generally, a K-shaped recovery will reflect a situation where technology and large capital firms recover at a far faster rate than small businesses and industries that have been significantly impacted by the pandemic.

The CNX Nifty is currently trading at 17389.45, down by 227.70 points or 1.29% after trading in a range of 17386.35 and 17599.40. There were 7 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Cipla up by 2.06%, ONGC up by 1.71%, Sun Pharma up by 1.18%, Bharti Airtel up by 0.83% and ICICI Bank up by 0.56%. On the flip side, Divi's Lab down by 4.28%, Bajaj Finance down by 4.20%, Wipro down by 3.91%, Hindalco down by 3.86% and Tech Mahindra down by 3.73% were the top losers.

Asian markets were trading mostly in red; Hang Seng decreased 229.85 points or 0.92% to 24,735.70, Jakarta Composite lost 63.70 points or 0.95% to 6,662.67, KOSPI fell 44.75 points or 1.58% to 2,789.54 and Straits Times trembled 8.89 points or 0.27% to 3,285.97.

On the flip side, Shanghai Composite gained 7.06 points or 0.2% to 3,529.63, Taiwan Weighted strengthened 52.73 points or 0.29% to 17,952.03 and Nikkei 225 surged 53.06 points or 0.19% to 27,575.32.