Domestic indices trade with cut of around one percent

Domestic equity indices remained weak with cut of around one percent in late morning deals on account of selling by fund and retail investors amid mixed cues from global markets.  Meanwhile, broader indices on the BSE were trading lower in the range of 0.30-0.55%. Traders remained cautious after disappointing earnings from Tata Consultancy Services (TCS), the country's largest IT services company. The company missed profit estimates for the December quarter and flagged challenges in Europe where it draws a bulk of its revenue. Markets participants ignored a private report stating that India's retail inflation is likely to remain steady in December, staying within the Reserve Bank of India's comfort zone for a second month as a moderation in food price rises was partly offset by elevated core inflation. It said retail inflation is likely remained steady at 5.9% in December.

On the global front, Asian markets were trading mixed following the weak cues from US markets overnight, as traders remained cautious after comments from US Fed officials that the central bank will have to keep raising rates to somewhere above 5 percent. Back home, on the sectoral front, traders were seen pilling up position in Auto, Healthcare and Capital Goods, while selling was witnessed in TECK, IT, Telecom, PSU and Bankex.

The BSE Sensex is currently trading at 60200.42, down by 546.89 points or 0.90% after trading in a range of 60181.62 and 60809.65. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.55%, while Small cap index down by 0.31%.

The only gaining sectoral indices on the BSE were Auto up by 0.39%, Healthcare up by 0.39% and Capital Goods up by 0.02%, while TECK down by 1.55%, IT down by 1.34%, Telecom down by 1.19%, PSU down by 1.15% and Bankex down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 6.20%, Power Grid up by 0.77%, Hindustan Unilever up by 0.60%, Mahindra & Mahindra up by 0.50% and Sun Pharma up by 0.48%. On the flip side, Bharti Airtel down by 2.45%, SBI down by 2.22%, TCS down by 1.99%, HDFC Bank down by 1.57% and HDFC down by 1.56% were the top losers.

Meanwhile, Chief Economic Advisor (CEA) V Anantha Nageswaran has said that the Indian economy will be $3 trillion by the end of the current 2022-23 fiscal and is expected to be $7 trillion in the next seven years. He also said that the calendar year 2023 began in the context of the continuing conflict between Russia and Ukraine, which will create geo-political and geo-economic uncertainties. 

Nageswaran said the other major aspect is the opening up of China after two years of the pandemic and its impact on the world economy, particularly on retreating oil and commodity prices and also on the growth of the advanced economies of the US and Europe. He also said the most important issue is that the US is expected to lower its interest rates in 2024 or 2025, which will have an impact on the Indian rupee.

The CEA further said India had undertaken a lot of structural reforms, including the implementation of the Goods and Services Tax, and Insolvency and Bankruptcy Code, since 2016. He noted that Jan Dhan accounts have facilitated the seamless transfer of government benefits, adding that improvement in digital infrastructure has the potential to contribute 0.2 to 0.5 per cent of the country's GDP.

The CNX Nifty is currently trading at 17942.15, down by 159.05 points or 0.88% after trading in a range of 17940.25 and 18127.60. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Tata Motors up by 6.27%, Apollo Hospital up by 1.19%, ONGC up by 0.88%, Divi's Lab up by 0.88% and Power Grid up by 0.74%. On the flip side, Adani Enterprises down by 2.47%, Bharti Airtel down by 2.45%, Eicher Motors down by 2.25%, SBI down by 2.19% and TCS down by 2.04% were the top losers.

Asian markets were trading mixed; Nikkei 225 surged 200.26 points or 0.77% to 26,174.11, Taiwan Weighted strengthened 50.75 points or 0.34% to 14,802.96 and KOSPI rose 3.04 points or 0.13% to 2,353.23. However, Straits Times trembled 31.39 points or 0.95% to 3,274.28, Shanghai Composite declined 2.29 points or 0.07% to 3,173.79, Jakarta Composite lost 101.45 points or 1.52% to 6,586.82 and Hang Seng decreased 3.84 points or 0.02% to 21,384.50.