Markets trade near day’s low amid Covid worries

Indian equity markets extended losses to trade near day’s low point as traders remain worried with rising cases of Covid in many countries. Trader were also concerned with RBI Monetary Policy Committee member Jayanth R Varma’s statement that India’s economic growth is now 'extremely fragile' and needs all the support that it can get, as private consumption and capital investment are yet to pick up. Varma further said out of the four engines of growth for the economy, exports and government spending supported the Indian economy through the pandemic, but other engines need to pick up the baton now.

Global cues remain mixed with Asian markets were trading in red as traders remain concerned about Covid resurgence. However, European markets made mostly positive start as risk appetite returned before the Christmas holiday after equities slumped on Thursday over hawkish monetary policy concerns.

The BSE Sensex is currently trading at 59964.97, down by 861.25 points or 1.42% after trading in a range of 59915.52 and 60546.88. There were 1 stocks advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 3.08%, while Small cap index was down by 3.88%.

There was no gaining sectoral index on the BSE, while Utilities down by 4.63%, Power down by 4.39%, Realty down by 3.60%, Metal down by 3.44% and Industrials down by 3.38% were the top losing indices on BSE.

The lone gainer on the Sensex was Titan Company up by 0.21%. On the flip side, Tata Steel down by 3.95%, Tata Motors down by 3.60%, SBI down by 3.13%, Bajaj Finserv down by 2.81% and Larsen & Toubro down by 2.72% were the top losers.

Meanwhile, India and Bangladesh have held comprehensive discussions to further strengthen bilateral economic relations. A Joint feasibility study on a Comprehensive Economic Partnership Agreement (CEPA) has been carried out after the two countries agreed for exploring a bilateral FTA. The study confirmed the CEPA would provide a sound basis for substantial enhancement of trade and commercial partnership between the two countries.

Further, both sides agreed that CEPA will create new jobs, raise living standards, and provide wider social and economic opportunities in India and Bangladesh. In addition, the partnership would establish reliable and sustainable Regional Value Chains (RVCs).

Both sides agreed to starting the CEPA discussions at an early date. Various issues of mutual interest were discussed including removal of non-tariff barriers and port restrictions, re-opening of border haats, harmonization and mutual recognition of Standards and procedures on both sides, settlement of trade in Indian rupees, strengthening connectivity and trade infrastructure, among others, to realise the full potential of India-Bangladesh economic ties.

The CNX Nifty is currently trading at 17834.55, down by 292.80 points or 1.62% after trading in a range of 17830.45 and 18050.45. There were 3 stocks advancing against 47 stocks declining on the index.

The few gainers on Nifty were Divi's Lab up by 0.78%, Titan Company up by 0.18% and Cipla up by 0.05%. On the flip side, Adani Ports down by 6.25%, Adani Enterprises down by 5.03%, Hindalco down by 4.60%, Tata Steel down by 4.09% and Tata Motors down by 3.64% were the top losers.

All Asian markets were trading lower; Shanghai Composite declined 8.56 points or 0.28% to 3,045.87, Jakarta Composite lost 23.76 points or 0.35% to 6,800.67, Straits Times trembled 15.91 points or 0.49% to 3,253.62, KOSPI fell 43.04 points or 1.83% to 2,313.69, Nikkei 225 slipped 272.62 points or 1.03% to 26,235.25, Taiwan Weighted dropped 171.31 points or 1.19% to 14,271.63 and Hang Seng decreased 86.16 points or 0.44% to 19,593.06.

European markets were trading mostly in green; UK’s FTSE 100 increased 6.26 points or 0.08% to 7,475.54, Germany’s DAX increased 19.94 points or 0.14% to 13,934.01, while France’s CAC decreased 0.71 points or 0.01% to 6,517.26.