Sensex, Nifty add losses in late morning session

Indian equity benchmarks added losses in late morning session, on the back of Negative cues from other Asian markets along with heavy selling at Metal and Auto counters. Domestic sentiments remained negative, amid a private report stating that though there are signs of easing commodity prices, the economic outlook for the current financial year 2022-23 remains quite uncertain and will ride completely on the wheels of private consumption and investment demand. Adding more concerns, another private report stated that India's inflation will hold above the top of the central bank's tolerance band for at least the rest of 2022, longer than previously thought, making several more interest rate hikes in coming months all but inevitable.

Traders overlooked Commerce and Industry Minister Piyush Goyal’s statement that the country's exports are likely to register a ''reasonable level'' of growth in the current financial year despite the global uncertainties on the trade front. He said that there are signs of a global slowdown in international trade and India is keeping a ''watchful'' eye on the developments by talking to all the export promotion councils and large exporters, and engaging with the Indian missions abroad.

On the global front, Asian markets were trading mostly in red, after Producer prices in Japan were up 0.7 percent on month in June, the Bank of Japan said on Tuesday. That exceeded expectations for an increase of 0.5 percent following the upwardly revised 0.1 percent increase in May (originally flat). On a yearly basis, producer prices jumped 9.2 percent - again beating forecasts for 8.8 percent and down from the upwardly revised 9.3 percent gain in the previous month (originally 9.1 percent).

The BSE Sensex is currently trading at 54078.87, down by 316.36 points or 0.58% after trading in a range of 54054.47 and 54236.49. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.39%, while Small cap index was down by 0.28%.

The top gaining sectoral indices on the BSE were Utilities up by 1.65%, Power up by 1.60%, Telecom up by 1.39%, Oil & Gas up by 0.24% and Energy up by 0.23%, while Metal down by 1.50%, Auto down by 1.12%, Basic Materials down by 1.04%, Consumer discretionary down by 0.90% and Realty down by 0.87% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.80%, Bharti Airtel up by 0.56%, Dr. Reddy's Lab up by 0.32%, Wipro up by 0.23% and Axis Bank up by 0.21%. On the flip side, Tata Steel down by 1.52%, Titan Co down by 1.51%, Mahindra & Mahindra down by 1.37%, Asian Paints down by 1.30% and Hindustan Unilever down by 1.26% were the top losers.

Meanwhile, Council for Leather Exports (CLE) Chairman Sanjay Leekha has said that the country's exports of leather and leather products would cross $6 billion in 2022-23 on account of growing demand for these products in global markets. He said the sector is aiming at $10 billion by 2025-26. He noted that the changes in global market dynamics caused by the pandemic have created huge export opportunities for the sector.

CLE Chairman stated that the emerging business opportunities coupled with the slew of trade agreements signed and in pipeline and the active support of the government will help in sustaining the export growth in the remaining months of this year. The shipments from the sector rose by 32.5 per cent to $4.9 billion in 2021-22 from $3.7 billion in the previous year. Healthy export growth witnessed in 2021-22 is continuing this year also, with export of leather, leather products and footwear increasing from $621.50 million in April–May 2021 to $887.40 million in April - May 2022.

Export to USA has registered a growth of about 78.5 per cent, increasing from $128.49 million in April - May 2021 to $229.40 million in April - May 2022. Shipments to India's largest market - Europe too registered a growth of 44.6 per cent to $317.04 million during the first two months of this fiscal. Further exports to other potential markets like Canada, Australia, the UAE have also grown this year. The signing of trade pacts with the UAE and Australia would help in further boosting the outbound shipments.

The CNX Nifty is currently trading at 16115.50, down by 100.50 points or 0.62% after trading in a range of 16103.35 and 16158.75. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were NTPC up by 1.52%, Apollo Hospital Ent. up by 1.33%, Adani Ports & SEZ up by 0.94%, Coal India up by 0.72% and Bharti Airtel up by 0.58%. On the flip side, Hindalco down by 2.89%, Eicher Motors down by 2.41%, UPL down by 1.80%, Titan Co down by 1.69% and Tata Steel down by 1.51% were the top losers.
 
Asian markets were trading mostly in red; Nikkei 225 slipped 512.73 points or 1.91% to 26,299.57, Taiwan Weighted dropped 368.73 points or 2.57% to 13,971.80, Hang Seng decreased 255.11 points or 1.21% to 20,869.09, KOSPI fell 33.88 points or 1.45% to 2,306.39, Shanghai Composite declined 33.38 points or 1.01% to 3,280.20 . On the flip side, Jakarta Composite soared 9.54 points or 0.14% to 6,731.69 and Straits Times advanced 1.39 points or 0.04% to 3,132.65.