Bourses trade at day’s low points in late afternoon session

Indian equity markets traded at day’s low points in late afternoon session. HDFC was the top laggard, down above 3%, followed by NTPC, Infosys and Larsen & Toubro. The broader indices, the BSE Mid cap index and Small cap index were also trading in red. Sentiments remained down-beat, as India’s service sector activity fell in the month of January, as growth was curbed by the escalation of the pandemic. Moreover, job shedding continued and business confidence took a hit. Traders failed to took support with data by Centre for Monitoring Indian Economy (CMIE) showing that India's unemployment rate witnessed a sharp decline to 6.57 per cent in January, the lowest since March 2021, as the country gradually recovers with easing of restrictions following a decline in Omicron cases. On the global front, Asian markets were trading mixed as the latest batch of company earnings reports kept investors in a buying mood and pushed benchmarks on Wall Street higher. European markets were trading mostly in red as traders waited for interest rate decisions from the Bank of England (BoE) and the European Central Bank (ECB).

The BSE Sensex is currently trading at 59004.66, down by 553.67 points or 0.93% after trading in a range of 58883.38 and 59557.87. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index gained 0.57%, while Small cap index was down by 0.01%.

The few gaining sectoral indices on the BSE were Auto up by 0.88%, Consumer Durables up by 0.67%, Metal up by 0.26% and Consumer Discretionary was up by 0.24%, while IT down by 1.45%, Realty down by 1.25%, TECK down by 1.24%, Capital Goods down by 1.06% and Energy was down by 1.02% were the top losing indices on BSE.

The top gainers on the Sensex were Maruti Suzuki up by 1.48%, ITC up by 0.99%, Titan Company up by 0.88%, Asian Paints up by 0.61% and Tata Steel up by 0.25%. On the flip side, HDFC down by 3.15%, NTPC down by 2.77%, Infosys down by 2.23%, Larsen & Toubro down by 1.85% and Kotak Mahindra Bank down by 1.51% were the top losers.

Meanwhile, India’s service sector activity fell in the month of January, as growth was curbed by the escalation of the pandemic. Moreover, job shedding continued and business confidence took a hit. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index eased to 51.5 in January from 55.5 in December. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services -- also fell to 53.0 in January from 56.4 in December.

The report further noted that new work intakes increased further at the start of the year, taking the current sequence of expansion to six months. That said, the rate of growth was only slight and the weakest over this period. Besides, companies became increasingly worried that growth would be harmed by the intensification of the pandemic, the reintroduction of restrictions and inflationary pressures.

On the inflation front, January data pointed to a stronger increase in expenses among service providers, with the overall rate of inflation climbing to its highest since December 2011. Prices charged for the provision of services in India continued to increase at the start of the year, with many companies suggesting that additional cost burdens were transferred to consumers. Despite quickening from December, the overall rate of output price inflation was moderate and in line with its long-run average.

The CNX Nifty is currently trading at 17629.95, down by 150.05 points or 0.84% after trading in a range of 17584.95 and 17781.15. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Hero MotoCorp up by 3.71%, Bajaj Auto up by 2.49%, Maruti Suzuki up by 1.54%, Divi's Lab up by 0.97% and ITC up by 0.82%. On the flip side, HDFC down by 3.16%, NTPC down by 2.90%, SBI Life down by 2.88%, Infosys down by 2.17% and ONGC down by 2.07% were the top losers.

Asian markets were trading mixed, Straits Times advanced 61.62 points or 1.9% to 3,311.21 and KOSPI was up by 44.48 points or 1.67% to 2,707.82. On the flip side, Jakarta Composite lost 23.80 points or 0.35% to 6,683.85 and Nikkei 225 was down by 292.29 points or 1.06% to 27,241.31.

European markets were trading mostly in red, France’s CAC decreased 9.90 points or 0.14% to 7,105.37 and Germany’s DAX was down by 51.61 points or 0.33% to 15,562.16. On the flip side, UK’s FTSE 100 was up by 5.49 points or 0.07% to 7,588.49.