Local equities trade under heavy selling pressures in late afternoon session

Local equity markets traded under heavy selling pressures in late afternoon session amid weak global cues. The broader indices were also trading deep in red, as BSE Mid cap index fell 3.71% and Small cap index shares were trading 4.36% lower. On the stock-specific front, Bajaj Finance was the top loser as the stock slipped 5.81%. JSW Steel, Tech Mahindra, Tata Steel and Wipro were also among the laggards. Traders took note of report that the Reserve Bank of India (RBI) said it will be conducting an overnight variable rate repo auction under liquidity adjustment facility (LAF) for an amount of Rs 75,000 crore today. The date of reversal is on January 25, 2022. On the global front, Asian markets were trading mixed, 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. European markets were trading lower with technology stocks falling the most after worries about tighter monetary policies triggered a bruising sell-off in global equities last week.

The BSE Sensex is currently trading at 57506.25, down by 1530.93 points or 2.59% after trading in a range of 56984.01 and 59023.97. There were 0 stocks advancing against 30 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 3.71%, while Small cap index was down by 4.36%.

The top losing sectoral indices on the BSE were Realty down by 6.14%, Metal down by 4.51%, Consumer Durables down by 4.32%, Basic Materials down by 4.16%, Consumer Discretionary down by 4.08%.

The top losers on the Sensex were Bajaj Finance down by 5.81%, Titan Company down by 4.97%, Tata Steel down by 4.96%, Wipro down by 4.86% and Tech Mahindra down by 4.72%.

Meanwhile, calling upon the Indian Industry to inculcate a greater appetite for risk taking, Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal has said that the Government looks forward for investments from the private sector in labour oriented sectors to create jobs, maybe plastics, footwear, textiles, leather.

The minister further said “Industry associations, such as yours, can partner with all stakeholders including Central & State Governments, Missions, EPCs, and help attract businesses to India & strengthen domestic industry. Let us all come together with one resolve i.e. to make India a Global leader by taking up bigger & bolder challenges.”

Goyal also noted that with a Cost advantage as well as the Trust advantage that Indian Industry enjoys, this is the time for India to emerge out of the shadows and truly become a global nation. Besides, the minister Goyal said “the Indian Industry must clearly focus on the principles of Quality, Productivity & become global scale operators so that we can benefit from the economies of scale.”

The CNX Nifty is currently trading at 17153.55, down by 463.60 points or 2.63% after trading in a range of 16997.85 and 17599.40. There were 2 stocks advancing against 48 stocks declining on the index.

The only gainers on Nifty were Cipla up by 2.47% and ONGC up by 0.92%. On the flip side, JSW Steel down by 5.87%, Bajaj Finance down by 5.81%, Tata Steel down by 4.94%, Titan Company down by 4.94% and Hindalco down by 4.93% were the top losers.

Asian markets were trading mixed, Straits Times trembled 11.05 points or 0.34% to 3,283.81 KOSPI fell 42.29 points or 1.49% to 2,792.00, Jakarta Composite lost 71.20 points or 1.06% to 6,655.17 and Hang Seng was down by 309.09 points or 1.24% to 24,656.46. On the other hands, Taiwan Weighted strengthened 89.74 points or 0.5% to 17,989.04, Nikkei 225 surged 66.11 points or 0.24% to 27,588.37 and Shanghai Composite was up by 1.53 points or 0.04% to 3,524.10.

European markets were trading lower, UK’s FTSE 100 decreased 28.48 points or 0.38% to 7,465.65, France’s CAC decreased 45.84 points or 0.65% to 7,022.75 and Germany’s DAX was down by 98.88 points or 0.63% to 15,505.00.