Bourses add losses in late afternoon session

Equity markets failed to hold recovery and added losses in late afternoon session amid weak trend in global markets. As for broader indices, Small cap index remained in green, while BSE Mid cap index turned negative. Globally markets participates were cautious ahead to a Fed meeting and U.S. inflation data this week. Domestic investors awaited the country’s November retail inflation data, October’s industrial production (IIP) data set to be released in the evening. In scrip specific development, Uniparts India has debuted at Rs 575.00 on the BSE, down by 2 points or 0.35% from its issue price of Rs 577. On the global front, Asian markets were trading mostly in red after a forecast-beating US inflation reading dampened hopes for a more dovish tilt by the Federal Reserve in its battle against soaring prices. European markets were trading lower with rising COVID-19 infections in China after restrictions were eased also weighed on sentiment.

The BSE Sensex is currently trading at 61,965.66, down by 216.01 points or 0.35% after trading in a range of 61676.15 and 62239.42. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.10%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were Oil & Gas up by 0.83%, Energy up by 0.66%, Industrials up by 0.28%, PSU up by 0.21% and Capital Goods was up by 0.19%, while TECK down by 1.20%, IT down by 1.12%, Consumer Durables down by 1.11%, Telecom down by 0.55% and Auto was down by 0.48% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy's Lab up by 1.02%, Nestle up by 0.93%, Ultratech Cement up by 0.77%, Tata Steel up by 0.77% and HDFC Bank up by 0.75%. On the flip side, Asian Paints down by 2.35%, Infosys down by 2.16%, Titan Company down by 1.21%, Bharti Airtel down by 1.11% and Kotak Mahindra Bank down by 1.05% were the top losers.

Meanwhile, underlining series of measures taken by the Government to improve the economic situation and convert the disruption caused by COVID 19 into an opportunity for growth, the Minister of State for Commerce and Industry, Som Parkash has said that the growth of manufacturing sector was adversely affected due to COVID-19 pandemic, which has shown positive growth in double digits in the Financial Year 2021-2022. The Minister said that the annual growth rate of Manufacturing Sector as per Index of Industrial production (IIP), with base year 2011-12, was 11.8% during 2021-22 as against a contraction of 9.6% in 2020-21.

Som Parkash further noted that the Government of India has undertaken various steps to promote manufacturing sector and to boost domestic and foreign investments in India. These include introduction of Goods and Services Tax, reduction in Corporate tax, interventions to improve ease of doing business, FDI policy reforms, measures for reduction in compliance burden, policy measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme (PMP), to name a few.

Besides, the Minister said that keeping in view India’s vision of becoming ‘Atmanirbhar’ and to enhance India’s Manufacturing capabilities and Exports, an outlay of Rs 1.97 lakh crore (over $26 billion) has been announced in Union Budget 2021-22 for PLI schemes for 14 key sectors of manufacturing, starting from fiscal year (FY) 2021-22. With the announcement of PLI Schemes, significant creation of production, skills, employment, economic growth and exports is expected over the next five years and more.

The CNX Nifty is currently trading at 18,441.70, down by 54.90 points or 0.30% after trading in a range of 18345.70 and 18521.55. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were BPCL up by 1.94%, Divi's Lab up by 1.73%, Coal India up by 1.46%, Dr. Reddy's Lab up by 1.13% and Nestle up by 0.95%. On the flip side, Asian Paints down by 2.40%, Infosys down by 2.11%, Eicher Motors down by 1.79%, Titan Company down by 1.30% and Cipla down by 1.18% were the top losers.

Asian markets were trading mostly in red, Hang Seng decreased 437.24 points or 2.2% to 19,463.63, Taiwan Weighted dropped 92.84 points or 0.63% to 14,612.59, Nikkei 225 slipped 58.68 points or 0.21% to 27,842.33, Shanghai Composite declined 27.91 points or 0.87% to 3,179.04, KOSPI fell 16.02 points or 0.67% to 2,373.02 and Straits Times was down by 6.56 points or 0.2% to 3,239.41. On the flip side, Jakarta Composite was up by 19.33 points or 0.29% to 6,734.45.

European markets were trading lower, UK’s FTSE 100 decreased 17.91 points or 0.24% to 7,458.72, France’s CAC decreased 25.16 points or 0.38% to 6,652.48 and Germany’s DAX was down by 62.55 points or 0.44% to 14,308.17.