Benchmarks extend losses in morning session

Indian equity benchmarks extended their losses in morning session, dragged by losses in Metal, Utilities and Power stocks amid weak global cues. Traders remained cautious as former Niti Aayog Vice Chairman Arvind Panagariya opined that cutting trade with Beijing at this juncture would amount to sacrificing India's potential economic growth amid demands for snapping trade ties with China for its transgressions on the border. Instead, he suggested that India should try to enter into free trade agreements (FTA) with countries such as the UK and the European Union to expand its trade. Sectorally, telecom stocks remained in watch with report that the Department of Telecom (DoT) has formed four task forces to recommend to the government measures that will boost the domestic telecom manufacturing ecosystem and remove the bottlenecks. On the global front, Asian markets are trading lower amid concerns over the Federal Reserve's continued policy tightening and rising COVID cases in China. A new analysis revealed that China is likely experiencing 1 million COVID infections and 5,000 virus deaths every day.

The BSE Sensex is currently trading at 60148.13, down by 678.09 points or 1.11% after trading in a range of 60136.59 and 60546.88. There were 2 stocks advancing against 28 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 2.16%, while Small cap index was down by 2.76%.

The lone gaining sectoral index on the BSE was Healthcare up by 0.57%, while Metal down by 2.77%, Utilities down by 2.70%, Power down by 2.53%, Realty down by 2.36% and Telecom down by 2.35% were the top losing indices on BSE.

The few gainers on the Sensex were Sun Pharma up by 0.85% and Nestle up by 0.32%. On the flip side, Tata Motors down by 3.36%, Tata Steel down by 3.16%, SBI down by 2.17%, Bajaj Finance down by 2.02% and Bajaj Finserv down by 2.00% were the top losers.

Meanwhile, Minister of State for Steel Faggan Singh Kulaste has directed the domestic steel industry to increase use of scrap in their production, underscoring that carbon emission is a serious concern. India uses 30 million tonne (MT) scrap annually to manufacture steel, out of which 26 MT is generated domestically and remaining through imports.

Currently, India's overall steel production stands at around 120 MT. the Minister said the industry must also adopt new-age technologies to lower their carbon emissions.

According to a ministry document, the iron and steel industry globally accounts for around 8 per cent of total carbon dioxide (CO2) emissions on an annual basis, whereas in India, it contributes 12 per cent to the total CO2 emissions. The steel ministry has also asked the stakeholders of the sector to develop a time-bound action plan to lower emissions in the steel industry.

The CNX Nifty is currently trading at 17920.20, down by 207.15 points or 1.14% after trading in a range of 17912.75 and 18050.45. There were 5 stocks advancing against 45 stocks declining on the index.

The top gainers on Nifty were Divi's Lab up by 3.11%, Cipla up by 1.52%, Sun Pharma up by 0.88%, Dr. Reddy's Lab up by 0.48% and Nestle up by 0.46%. On the flip side, Adani Ports &SEZ down by 3.75%, Hindalco down by 3.67%, Tata Steel down by 3.58%, Tata Motors down by 3.41% and Adani Enterprises down by 2.48% were the top losers.

All Asian markets are trading lower; Hang Seng decreased 114.76 points or 0.58% to 19,564.46, Taiwan Weighted dropped 175.70 points or 1.22% to 14,267.24, Nikkei 225 slipped 263.78 points or 1% to 26,244.09, KOSPI fell 39.33 points or 1.67% to 2,317.40, Straits Times trembled 14.38 points or 0.44% to 3,255.15, Shanghai Composite declined 0.55 points or 0.02% to 3,053.88 and Jakarta Composite lost 15.98 points or 0.23% to 6,808.45.