Weak trade continues over Dalal Street

Weak trade continued over the Dalal Street in late morning session, with both Sensex and Nifty trading in red terrain, despite positive cues from other Asian markets. Sentiments were negative, amid a private report stating that India’s economy probably grew slower than previously estimated last year, with virus curbs in the final quarter seen as a drag on activity while the war in Europe has added a new inflation hurdle to recovery. Losses were limited, as the Prime Minister's Employment Generation Programme has been approved for continuation till the financial year 2025-26 with the total outlay of Rs 13,554.42 crore.

On the global front, Asian markets were trading mostly in green, following the lack of cues from Wall Street overnight due to a holiday, as signs of easing COVID-19 curbs in Beijing and Shanghai as well as the announcement of more stimulus measures in China raised optimism about growth in the world's second largest economy and helped underpin sentiment.

The BSE Sensex is currently trading at 55839.74, down by 86.00 points or 0.15% after trading in a range of 55386.50 and 55890.68. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.52%, while Small cap index was up by 0.83%.

The top gaining sectoral indices on the BSE were Realty up by 1.52%, Auto up by 1.32%, Consumer discretionary up by 1.00%, Industrials up by 0.86% and Telecom up by 0.77%, while Consumer Durables down by 1.09%, Power down by 0.98%, Utilities down by 0.79%, Healthcare down by 0.28% and FMCG down by 0.14% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 3.62%, Power Grid up by 2.06%, Nestle up by 1.68%, NTPC up by 1.66% and Tech Mahindra up by 0.77%. On the flip side, Sun Pharma down by 3.84%, Titan Co down by 3.02%, HDFC down by 1.75%, Hindustan Unilever down by 1.15% and Kotak Mahindra Bank down by 1.03% were the top losers.

Meanwhile, Economic Affairs Secretary Ajay Seth has said that the government will soon finalize a consultation paper on crypto currencies with inputs from various stakeholders and institutions, including the World Bank and the IMF. He also underlined the need for a global response to deal with issues concerning crypto currencies as these operate in the virtual world. Seth said ‘Countries which have prohibited, they can't success unless there is a global consensus around that. There has to be a broad framework of participation. Digital assets, whatever way we want to deal with those assets, there has to be a broad framework on which all economies have to be together. No country can choose to either of the position. We need a global consensus on crypto regulation.’

Expressing hope, Economic Affairs Secretary said, India is poised to become the fastest growing among large economies in the world despite global challenges. He said ‘we can overcome the current challenges as well as the challenges that will come to us in the coming years in the Amrit Kal. There are strong global headwinds which have impacted the global economy, ... Even despite all those, India is poised to grow the fastest among all large countries in the world. That was the position six months back and that will be our assessment even today.’

Seth also assured that inflation should be moderating with the help of both and fiscal and monetary measures. When asked what more measures are being envisaged to cool down prices, he said, it is evolving situation and difficult to say what future steps are likely. He added that whatever the current challenges are they are being responded to in a timely manner.

The CNX Nifty is currently trading at 16656.65, down by 4.75 points or 0.03% after trading in a range of 16521.90 and 16662.35. There were 32 stocks advancing against 18 stocks declining on the index.

The top gainers on Nifty were Mahindra & Mahindra up by 3.69%, ONGC up by 3.16%, Bajaj Auto up by 2.37%, Apollo Hospital Ent. up by 2.21% and Power Grid up by 2.17%. On the flip side, Sun Pharma down by 3.82%, Titan Co down by 2.99%, HDFC down by 1.70%, HDFC Life Insurance down by 1.18% and Hindustan Unilever down by 1.13% were the top losers.

Asian markets were trading mostly in green; Hang Seng increased 91.33 points or 0.43% to 21,215.26, Jakarta Composite soared 45.53 points or 0.65% to 7,083.10, Shanghai Composite gained 23.67 points or 0.75% to 3,172.73, Taiwan Weighted strengthened 16.97 points or 0.1% to 16,627.59, Straits Times advanced 13.29 points or 0.41% to 3,252.21 and KOSPI rose 9.64 points or 0.36% to 2,679.30. On the flip side, Nikkei 225 slipped 68.12 points or 0.25% to 27,301.31.