Weak trade persists over Dalal Street

Weak trade persisted over the Dalal Street in early afternoon deals, with both Sensex and Nifty trading marginally lower, amid mixed cues from other Asian markets. Sentiments remained downbeat, as a private report stated that asset management companies mobilised Rs 17,805 crore through 67 new fund offerings (NFOs) in the September 2022 quarter, a 64 per cent decline from the year-ago period, on expensive valuations and high volatility in equity markets.

The street overlooked reports that India’s inflation based on wholesale price index (WPI) eased further 8.39% in the month of October 2022 as against 10.70% recorded in September 2022, primarily contributed by fall in the price of mineral oils, basic metals, fabricated metal products, except machinery and equipment; textiles; other non-metallic mineral products; minerals etc.

On the global front, Asian markets were trading mixed, even after Malaysia's economic growth rose to double-digit in the third quarter, which was the biggest in more than a year, on base effects and robust domestic demand. Gross domestic product registered a sharp annual growth of 14.2 percent after expanding 8.9 percent in the second quarter. This was the biggest since the second quarter of 2021.

The BSE Sensex is currently trading at 61669.81, down by 125.23 points or 0.20% after trading in a range of 61614.46 and 61916.24. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.01%, while Small cap index up by 0.25%.

The top gaining sectoral indices on the BSE were Metal up by 1.55%, IT up by 0.94%, Realty up by 0.59%, TECK up by 0.51% and Healthcare up by 0.45%, while Capital Goods down by 0.71%, Power down by 0.68%, Utilities down by 0.58%, Telecom down by 0.53% and FMCG down by 0.53% were the top losing indices on BSE.
The top gainers on the Sensex were Tata Steel up by 1.58%, Tech Mahindra up by 1.25%, Kotak Mahindra Bank up by 1.07%, Infosys up by 0.99% and HCL Tech. up by 0.85%. On the flip side, Dr. Reddy's down by 3.96%, ICICI Bank down by 1.54%, ITC down by 1.47%, Power Grid down by 1.26% and Hindustan Unilever down by 1.20% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman said that India has emerged as one of the fastest-growing major economies in the world. It has recently surpassed the UK to become the fifth-largest economy in the world and is expected to be one of the top three economic powers globally over the next 10-15 years. She also said the global economic outlook remains challenging and the Indian economy is not insulated from the impact of global economic developments.

However, she said India has carved out its growth trajectory supported by the above-normal south-west monsoon, public investment, strong corporate balance sheets, upbeat consumer and business confidence and receding threat of the Covid pandemic. Listing out some of the important measures taken by the government to boost the economy, she mentioned about Production Linked Incentive (PLI) schemes across sectors, PM GatiShakti programme and semiconductor mission.

The minister said ‘we recognise foreign capital flows as a vital component of India's growth story. Key reforms include simplification and rationalisation of the Foreign Portfolio Investor (FPI) regulations, increase in aggregate foreign investment limit, introduction of Common Application Form (CAF) for registration of FPIs, and opening of new channels of debt investments like the Voluntary Retention Route (VRR) and Fully Accessible Route (FAR)'. The success of these measures is reflected in the sustained investment flows entering India through the FPI route. Significantly, she said, the US is the top source country of FPI investment in India, with the Asset under Custody (AUC) of FPIs from the USA standing close to $234 billion as on September 30, 2022.

The CNX Nifty is currently trading at 18339.35, down by 10.35 points or 0.06% after trading in a range of 18327.20 and 18399.45. There were 27 stocks advancing against 23 stocks declining on the index.

The top gainers on Nifty were Hindalco up by 4.90%, Tata Motors up by 2.89%, Apollo Hospitals Enterprise up by 2.57%, Grasim Industries up by 1.98% and Tata Steel up by 1.72%. On the flip side, Dr. Reddy's down by 3.89%, ITC down by 1.61%, ICICI Bank down by 1.46%, Power Grid down by 1.42% and Hindustan Unilever down by 1.37% were the top losers.

Asian markets were trading mixed; KOSPI fell 8.51 points or 0.34% to 2,474.65, Shanghai Composite declined 7.98 points or 0.26% to 3,079.31, Jakarta Composite lost 46.77 points or 0.66% to 7,042.44 and Nikkei 225 slipped 300.10 points or 1.06% to 27,963.47, while Taiwan Weighted strengthened 167.34 points or 1.19% to 14,174.90, Hang Seng increased 242.56 points or 1.4% to 17,568.22 and Straits Times advanced 34.72 points or 1.08% to 3,263.05.