Markets continue to trade in red tracking weak global cues

Indian equity markets continued to trade in red in late morning deals, tracking weak global cues. Worries about rising inflation, and mounting fears of a global recession amid high interest rates hurt European and the US markets overnight, and the mood in Asian markets remained bearish as well.  Meanwhile, the broader indices on the BSE were also trading lower.  Sentiments were subdued as private report stated that India's economy will grow well below its potential over the next two years, with inflation staying above the mid-point of the Reserve Bank of India's tolerance band despite recent interest rate rises.  On the BSE sectoral front, traders were seen piling up position in TECK, IT, Oil & Gas, Telecom and FMCG, while selling was witnessed in Consumer Durables, Bankex, Realty, Auto and PSU.

On the global front, Asian markets were mostly trading lower, as risk appetite among investors faded after inflation data across the globe re-ignited fears of aggressive interest rate hikes by the Federal Reserve. Back home, in stock specific development, Nestle India surged after the FMCG major reported strong revenue growth of 18.2 per cent YoY to Rs 4,567 crore in July-September quarter (Q3CY22) led by Maggi noodles, Milkmaid & Nescafe classic.

The BSE Sensex is currently trading at 58983.98, down by 123.21 points or 0.21% after trading in a range of 58791.28 and 59090.40. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.70%, while Small cap index down by 0.20%.

The top gaining sectoral indices on the BSE were TECK up by 0.68%, IT up by 0.64%, Oil & Gas up by 0.28%, Telecom up by 0.28% and FMCG up by 0.27%, while Consumer Durables down by 1.23%, Bankex down by 1.00%, Realty down by 0.69%, Auto down by 0.65% and PSU down by 0.36% were the top losing indices on BSE.

The top gainers on the Sensex were HCL up by 1.67%, Nestle up by 1.16%, TCS up by 0.82%, Wipro up by 0.78% and Tech Mahindra up by 0.71%. On the flip side, Indusind Bank down by 4.10%, Titan Co down by 1.48%, NTPC down by 1.22%, Axis Bank down by 1.02% and ICICI Bank down by 1.00% were the top losers.

Meanwhile, Subhrakant Panda, senior vice president of the Federation of Indian Chambers and Commerce and Industries (FICCI) has said that the Indian industry is ready to catch the momentum of the country’s growth story and be a part of its march to 2047 to become a developed nation. He said India has emerged as a bright spot in the world economy.

Asserting that experts and economist are now talking about the country becoming a $30 trillion or $35 trillion economy, Panda said there is no doubt that the Indian economy would easily surpass the goal of $ 5 trillion and then $ 10 trillion GDP. He said ‘there are many assumptions and factors which go into deriving those numbers, but I think what is very clear is the direction of growth and the sustained reforms, which are going to take us in that direction of growth.’

Applauding the government for the sustained and aggressive reforms that are addressed to meet the needs of common people and strengthen the Indian economy, he listed some of the reforms that are needed in the next phase. He said a lot of reform measures like decriminalising minor offences, reducing compliance touchpoints, digitising records have been done. He also said ‘now, if you look at it, I think labour reforms, the government has taken a major step forward in terms of codifying it into four different codes. But that is something that we hope comes through next because that is a key factor in adding to India's competitiveness and the foundation that is required to push growth.’

The CNX Nifty is currently trading at 17484.20, down by 28.05 points or 0.16% after trading in a range of 17421.00 and 17518.45. There were 23 stocks advancing against 26 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were UPL up by 2.62%, HCL up by 1.64%, Nestle up by 1.21%, Tech Mahindra up by 0.84% and Wipro up by 0.81%. On the flip side, Indusind Bank down by 4.03%, Titan Co down by 1.54%, NTPC down by 1.19%, ICICI Bank down by 1.09% and Axis Bank down by 1.07% were the top losers.

Asian markets were trading mostly in red, Nikkei 225 slipped 217.11 points or 0.8% to 27,040.27, Taiwan Weighted dropped 64.14 points or 0.49% to 12,912.62, Hang Seng decreased 175.54 points or 1.06% to 16,335.74 and KOSPI fell 18.45 points or 0.82% to 2,218.99. However, Jakarta Composite soared 104.56 points or 1.52% to 6,964.98, Straits Times advanced 2.33 points or 0.08% to 3,025.13 and Shanghai Composite gained 15.31 points or 0.5% to 3,059.69.