Markets trim some of gains tracking sluggish cues from other Asian markets

Indian equity markets trimmed some of their gains in late morning deals tracking sluggish cues from other Asian markets as the International Monetary Fund (IMF) cut Asia's economic forecasts, saying China's economic slowdown will weigh on the region's growth. Depreciation in Indian rupee against dollar too weighed down sentiments. Rupee weakened by 6.5 paise to 82.40 against the dollar at the Inter-bank Foreign Exchange market on account of increased demand for the American currency from importers and banks. Besides, some cautiousness also prevailed in the markets as the Reserve Bank of India (RBI) said it would hold a special meeting of its rate-setting committee on 3 November to prepare a report for the government on why it failed to keep retail inflation below the target of 6 percent for three consecutive quarters since January. 

On the global front, Asian markets were mostly in red following the mostly negative cues from US markets overnight, with traders remaining cautious as concerns about the outlook for interest rates and a global recession continue following the release of a mixed batch of U.S. economic data. Back home, in stock specific development, shares of SBI Cards and Payment Services plunged after the company reported a modest set of earnings for Q2.

The BSE Sensex is currently trading at 59939.01, up by 182.17 points or 0.30% after trading in a range of 59746.80 and 60133.17. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.22%, while Small cap index down by 0.21%.

The top gaining sectoral indices on the BSE were Energy up by 1.27%, Oil & Gas up by 1.03%, Auto up by 0.66%, Industrials up by 0.33% and Capital Goods up by 0.24%, while Metal down by 1.44%, Bankex down by 0.59%, Telecom down by 0.54%, Realty down by 0.50% and IT down by 0.30% were the top losing indices on BSE.

The top gainers on the Sensex were Reliance Industries up by 2.44%, NTPC up by 1.44%, Power Grid Corp up by 1.23%, Bajaj Finserv up by 1.01% and Indusind Bank up by 0.99%. On the flip side, Tata Steel down by 2.16%, Tech Mahindra down by 1.53%, ICICI Bank down by 1.51%, SBI down by 1.39% and Axis Bank down by 1.12% were the top losers.

Meanwhile, Union minister Piyush Goyal has said that India's textiles sector aims to hit $100 billion exports in 5-6 years, which would take the industry's combined domestic and international economic value to $250 billion. He said outbound shipments from the country's textiles segment stood at around $42 billion in 2021-22.
The minister said manufacturers should start securing cotton to meet their demands. Besides, all those involved with cotton industry should meet to discuss the strategy to trace cotton and ensure value of the cotton products. He also said that last year, textile export was approximately $42 billion, while the target is to achieve $100 billion by next 5-6 years. He noted that if achieved, the economic value of the sector will be worth $250 billion collectively, including its domestic as well as international markets.

As per agriculture ministry's latest data, production of cotton is estimated at 34.19 million bales (of 170 kg each) in the 2022-23 crop year (July-June) as against 31.20 million bales in the previous year. Cotton is one of the major Kharif (summer-sown) crops. The harvesting of cotton crops has begun from October. Goyal said that funds are available under the Textile Mission and should be utilised in new projects, adding that the potential of textile sector may be showcased in G-20. 

The CNX Nifty is currently trading at 17784.15, up by 47.20 points or 0.27% after trading in a range of 17746.65 and 17838.90. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.69%, Reliance Industries up by 2.31%, Apollo Hospital Ent. up by 2.00%, Bajaj Auto up by 1.99% and NTPC up by 1.46%. On the flip side, Tata Steel down by 2.16%, Divi's Lab down by 2.01%, Hindalco down by 1.88%, JSW Steel down by 1.71% and Tech Mahindra down by 1.54% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 234.85 points or 0.86% to 27,110.39, Taiwan Weighted dropped 137.95 points or 1.07% to 12,788.42, Hang Seng decreased 544.87 points or 3.53% to 14,883.07, Jakarta Composite lost 43.54 points or 0.61% to 7,048.22, KOSPI fell 19.53 points or 0.85% to 2,269.25 and Shanghai Composite declined 51.18 points or 1.72% to 2,931.72.  However, Straits Times advanced 44.38 points or 1.47% to 3,059.62.