Bourses trim some losses in late afternoon session

Although still into the negative, key benchmark indices managed to recoup some of the losses in late afternoon session. Buying in Consumer Durables and Telecom stocks helped the markets to trim some losses. Losses got restricted after Union Minister of Petroleum and Natural Gas Hardeep Singh Puri said that India has handled the current energy crisis in a responsible and mature manner. The minister said that there is a huge potential of India-US collaboration in the energy sector. However, traders were cautious after World Bank substantially scaled down its FY23 growth projection for India to just 6.5% from 7.5% predicted in June, presenting the gloomiest forecast for the country by any major agency, as it warned of ‘deteriorating external environment’. On the global front, all Asian markets were trading lower ahead of U.S. jobs data investors hope will persuade the Federal Reserve to ease off plans for more interest rate hikes. European markets were trading lower as investors await U.S. non-farm payrolls employment data, due out later in the day, for greater clarity and insights into the health of the job market and economy.

The BSE Sensex is currently trading at 58110.00, down by 112.10 points or 0.19% after trading in a range of 57851.15 and 58231.20. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.38%, while Small cap index was up by 0.16%.

The few gaining sectoral indices on the BSE were Consumer Durables up by 2.15%, Telecom up by 0.84%, Industrials up by 0.30%, Capital Goods up by 0.20%, while Metal down by 1.06%, Oil & Gas down by 0.91%, Energy down by 0.83%, Bankex down by 0.76% and PSU was down by 0.63% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 5.33%, Maruti Suzuki up by 1.31%, Power Grid up by 0.85%, Reliance Industries up by 0.71% and Indusind Bank up by 0.68%. On the flip side, Mahindra & Mahindra down by 1.73%, SBI down by 1.58%, Ultratech Cement down by 1.30%, TCS down by 1.12% and Bajaj Finserv down by 1.05% were the top losers.

Meanwhile, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the entities having reliance on equity infusions through initial public offerings/rights issues or monetisation of assets are likely to be impacted by tightening liquidity conditions and ensuing volatility in asset prices.

As per the report, sudden changes in the macroeconomic contour and volatile conditions in the capital market could inhibit fund raising through these channels, especially for entities with a weak credit profile. This could delay deleveraging or in certain cases expose entities to liquidity risks. On the other hand, as expected, the large corporate portfolio is resilient to any near-term economic shocks.

Further, Soumyajit Niyogi, Director at Ind-Ra said that post pandemic, the buoyant capital market, led by the unprecedented flow of funds globally and domestically, strong economic recovery has enticed business sentiments towards raising funds through asset monetisation or equity dilution. He also added that favourable financial conditions and an attractive outlook on both tangible and equity valuation has made the situation more compelling.

The CNX Nifty is currently trading at 17301.05, down by 30.75 points or 0.18% after trading in a range of 17216.95 and 17334.65. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Titan Company up by 5.42%, Maruti Suzuki up by 1.29%, Hero MotoCorp up by 1.01%, Power Grid up by 0.85% and Reliance Industries up by 0.80%. On the flip side, Coal India down by 2.06%, Mahindra & Mahindra down by 1.74%, SBI down by 1.56%, Tata Consumer down by 1.55% and JSW Steel down by 1.38% were the top losers.

All Asian markets were trading lower, Hang Seng decreased 272.10 points or 1.51% to 17,740.05, Nikkei 225 slipped 195.19 points or 0.71% to 27,116.11, Taiwan Weighted dropped 189.77 points or 1.37% to 13,702.28, Jakarta Composite lost 49.84 points or 0.7% to 7,026.78, Straits Times trembled 10.15 points or 0.32% to 3,141.41 and KOSPI was down by 5.02 points or 0.22% to 2,232.84.

European markets were trading lower, UK’s FTSE 100 decreased 8.11 points or 0.12% to 6,989.16, France’s CAC decreased 7.94 points or 0.13% to 5,928.48 and Germany’s DAX was down by 26.60 points or 0.21% to 12,444.18.