Bourses enlarge losses in late afternoon session

Indian equity markets enlarged their losses in late afternoon session amid selling pressure in Power, Utilities and Auto shares. The broader indices, the BSE Mid cap index and Small cap index were also trading weak. The overall market breadth was negative as 2025 shares were declining and 1457 were advancing, while 172 shares were unchanged on the BSE. Sentiments remained down-beat, as India's manufacturing activity lost some momentum in September, but cost pressures continued to recede. The S&P Global India Manufacturing PMI edged down to 55.1 from 56.2 in August. Sector wise, steel sector remained in focused, as Steel production having 17.92 per cent weight increased by 2.2 per cent in August, 2022 over August, 2021. Its cumulative index increased by 5.8 per cent during April to August, 2022-23 over the corresponding period of previous year.

On the global front, Asian markets were trading mostly in red following the broadly negative cues from Wall Street on Friday, reflecting lingering concerns about a recession and the global economic outlook amid aggressive interest rate hikes by central banks around the world. European markets were trading lower as higher-than-expected U.S. inflation data and sharp moves in the price of oil added to worries about slowing global growth.

The BSE Sensex is currently trading at 56,884.09, down by 542.83 points or 0.95% after trading in a range of 56872.63 and 57454.84. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.70%, while Small cap index was down by 0.27%.

The only gaining sectoral indices on the BSE were Healthcare up by 1.28% and Telecom was up by 0.98%, while Power down by 2.22%, Utilities down by 2.09%, Auto down by 1.89%, FMCG down by 1.61% and Consumer Durables was down by 1.37% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy's Lab up by 1.75%, Bharti Airtel up by 1.03%, NTPC up by 0.78%, Ultratech Cement up by 0.39% and Sun Pharma up by 0.21%. On the flip side, Maruti Suzuki down by 3.01%, Hindustan Unilever down by 2.29%, Kotak Mahindra Bank down by 2.29%, ITC down by 1.81% and Larsen & Toubro down by 1.58% were the top losers.

Meanwhile, Indian manufacturing activity growth eased further in the month of September, but it remains above the boom-or-bust line of 50 that separates expansion from contraction, as companies stepped up production in tandem with a sustained increase in new work intakes. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 55.1 in September from 56.2 in August.

The report further noted that factory orders continued to increase at the end of the second fiscal quarter, stretching the current sequence of expansion to 15 months. Despite easing to the weakest since June, the rate of growth was sharp. Besides, new export orders rose further in September. The increase was marked, the sixth in consecutive months and the fastest since May.

On the inflation front, goods producers enjoyed a weaker inflationary environment in September, as input costs rose at the slowest pace since October 2020. While around 8% of companies reported higher purchasing prices, 91% signalled no change. This retreat in cost inflationary pressures helped curtail the latest upturn in selling prices, which was modest and the slowest in seven months.

The CNX Nifty is currently trading at 16,917.40, down by 176.95 points or 1.04% after trading in a range of 16921.25 and 17114.65. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.42%, Cipla up by 2.34%, BPCL up by 1.77%, Dr. Reddy's Lab up by 1.73% and Coal India up by 1.63%. On the flip side, Adani Enterprises down by 6.78%, Eicher Motors down by 4.89%, Maruti Suzuki down by 3.04%, Hindalco down by 2.42% and Tata Consumer down by 2.37% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 143.32 points or 0.83% to 17,079.51, Taiwan Weighted dropped 124.10 points or 0.92% to 13,300.48, Jakarta Composite lost 31.08 points or 0.44% to 7,009.72 and Straits Times was down by 18.41 points or 0.59% to 3,111.83. On the flip side, Nikkei 225 was up by 278.58 points or 1.07% to 26,215.79.

European markets were trading lower, UK’s FTSE 100 decreased 65.28 points or 0.95% to 6,828.53, France’s CAC decreased 88.66 points or 1.54% to 5,673.68 and Germany’s DAX was down by 162.74 points or 1.34% to 11,951.62.