Domestic indices trade lower in early deals

Indian equity benchmarks made negative start on Thursday following weak global cues on rising geopolitical tensions. Markets are trading lower in early deals amid volatility due to weekly F&O expiry.  Foreign fund outflow also weighed down on domestic sentiments. According to provisional data available on the NSE, foreign institutional investors have net sold shares worth Rs 386.06 crore on November 16. However, downside remained capped with the commerce ministry's data showing that India's exports to the UAE, with which a free trade agreement was implemented on May 1, rose by 17.6 per cent to about $18 billion during April-October this fiscal.

Most of the Asian markets are trading lower following the broadly negative cues from global markets overnight, as traders closely followed the developments on the geopolitical front following a missile blast in Poland. Traders were also digesting a mixed batch of U.S. economic data, which added to recent uncertainty about the outlook for interest rates. Meanwhile, Japan posted a merchandise trade deficit of 2,162.3 billion yen in October.

Back home, oil & gas industry stocks were in focus as the government hiked windfall tax on domestically produced crude oil while reducing the rate on export of diesel. The tax on crude oil produced by firms such as state-owned ONGC, was hiked to Rs 10,200 per tonne, from Rs 9,500 per tonne, with effect from November 17. In stock specific development, Paytm plunged on reports that Softbank is selling stake worth $200 million in the company via a block deal.

The BSE Sensex is currently trading at 61899.48, down by 81.24 points or 0.13% after trading in a range of 61768.96 and 61958.04. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.21%, while Small cap index was down by 0.09%.

The top gaining sectoral indices on the BSE were Capital Goods up by 0.68%, Industrials up by 0.41%, Telecom up by 0.24%, PSU up by 0.09%, Oil & Gas up by 0.04%, while Metal down by 1.24%, Consumer Durables down by 0.97%, Auto down by 0.94%, IT down by 0.77%, TECK down by 0.57% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.32%, Axis Bank up by 0.67%, ICICI Bank up by 0.64%, Power Grid up by 0.53% and Sun Pharma up by 0.32%. On the flip side, Titan Company down by 1.59%, Tata Steel down by 1.41%, Tech Mahindra down by 1.34%, HCL Technologies down by 1.01% and Maruti Suzuki down by 0.89% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India will be launching negotiations for a free trade agreement (FTA) with a region next week. Though the minister did not disclose the name of the region, there is a likelihood that the talks may start with the Gulf Cooperation Council (GCC) as the region was keen to increase economic engagement with India. GCC is a union of six countries in the Gulf region -- Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain.

He added that negotiations are going on with countries, including the UK, European Union, Canada and Israel. India has already implemented a free trade pact with the UAE in May this year. In a free trade agreement, two countries or regions either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. Besides, they also ease norms to promote trade and investments.

Goyal said that the world sees huge opportunities in India and that is the reason for increasing engagement with India. He also said that the country's economy may touch $30 trillion by 2047 and if things perform ‘slightly better’, it may touch $49 trillion.

The CNX Nifty is currently trading at 18374.35, down by 35.30 points or 0.19% after trading in a range of 18351.70 and 18399.80. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Larsen & Toubro up by 1.33%, Sun Pharma up by 0.68%, ICICI Bank up by 0.63%, Axis Bank up by 0.58% and Power Grid up by 0.55%. On the flip side, Tata Motors down by 2.38%, Hindalco down by 2.06%, Eicher Motors down by 1.64%, Tata Steel down by 1.55% and Titan Company down by 1.52% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 92.19 points or 0.33% to 27,936.11, Hang Seng plunged 483.93 points or 2.65% to 17,772.55, Taiwan Weighted lost 69.58 points or 0.48% to 14,467.77, KOSPI declined 22.34 points or 0.90% to 2,455.11, Jakarta Composite fell 4.53 points or 0.06% to 7,009.85 and Shanghai Composite was down by 31.09 points or 1.00% to 3,088.89, while Straits Times was up by 2.74 points or 0.08% to 3,268.91.