Weak trade continues over Dalal Street

A weak trade continued over the Dalal Street in early afternoon deals, with both Sensex and Nifty trading in red, amid mixed cues from other Asian markets along with heavy selling at Utilities, Power and Oil & Gas counters. Sentiments remained downbeat, amid a private report stating that foreign investors have pulled out a net of over Rs 17,000 crore this month so far due to the attractiveness of the Chinese markets and the cautious stance adopted by them ahead of the Union Budget and US Federal Reserve meeting. The outflow in January came after a net inflow of Rs 11,119 crore in December and Rs 36,239 crore in November.

Adding more worries among traders, another private survey report stated that more than half of households in a survey conducted online across 309 districts expect a decline in their income by up to 25 per cent and dip in savings, and are looking for relief in the coming budget. The survey, conducted between November 25 and January 25, found that with job losses and hiring sentiment turning negative, 52 per cent respondents feel that the economic uncertainty will persist for the next 6-12 months.

On the global front, Asian markets were trading mixed, after business confidence in South Korea ebbed in January, with a Business Survey Index score of 66.0 - down from 71.0 in December. The outlook for the following month also fell by 3 points to 65. In the non-manufacturing sector, the BSI on business conditions for January 2023 was 71, down 5 points from the previous month, and the outlook for the following month also fell by 2 points to 70.

The BSE Sensex is currently trading at 59236.66, down by 94.24 points or 0.16% after trading in a range of 58706.85 and 59644.24. There were 15 stocks advancing against 15 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell by 0.25%, while Small cap index was up by 0.18%.

The few gaining sectoral indices on the BSE were Telecom up by 1.18%, IT up by 0.87%, TECK up by 0.73% and Consumer Durables up by 0.20%, while Utilities down by 5.92%, Power down by 5.47%, Oil & Gas down by 3.66%, Energy down by 2.94% and Metal down by 1.41% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finance up by 4.49%, NTPC up by 2.77%, Bajaj Finserv up by 2.29%, Ultratech Cement up by 1.56% and Infosys up by 1.33%. On the flip side, Indusind Bank down by 3.79%, Power Grid Corporation of India down by 3.31%, Hindustan Unilever down by 2.37%, Tata Steel down by 1.91% and Axis Bank down by 1.51% were the top losers.

Meanwhile, calling for the creation of an international network of mentors, investors and entrepreneurs to strengthen the global startup ecosystem, Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal has said that this network must support and inspire startups, act as a team to facilitate exchange of ideas, best practices and funding mechanisms and promote collaborations in Research and Development.

The Minister further said that it is not just the role of individual nations to support innovation, adding that it will have to be the collective responsibility of world nations to nurture a global effort to incubate startup ecosystems in all parts of the world, thus creating a global startup ecosystem that is inclusive, supportive and sustainable to address global challenges.

Besides, Goyal said that India was proud to highlight the progress & potential of the global startup ecosystem as the host nation of G20. He noted that the Startup20 Group had been established under India’s G20 Presidency for the first time, as part of India’s special focus on innovation. The Minister expressed confidence that innovation would be the strongest pillar that would help build a developed India in the Amritkaal. He said that innovation has been a catalytic force for the economy and social and public good.

The CNX Nifty is currently trading at 17569.85, down by 34.50 points or 0.20% after trading in a range of 17446.25 and 17709.15. There were 23 stocks advancing against 27 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 4.38%, Adani Enterprises up by 4.06%, NTPC up by 2.98%, Bajaj Finserv up by 2.19% and Ultratech Cement up by 1.56%. On the flip side, Indusind Bank down by 3.69%, Power Grid Corporation of India down by 3.44%, JSW Steel down by 2.74%, Hindustan Unilever down by 2.40% and Hindalco down by 2.13% were the top losers.

Asian markets were trading mixed; Hang Seng declined 532.45 points or 2.35% to 22,156.45, Jakarta Composite plunged 33.88 points or 0.49% to 6,865.10, KOSPI dropped 33.55 points or 1.37% to 2,450.47 and Straits Times fell 12.8 points or 0.38% to 3,381.41, while Shanghai Composite strengthened 3.84 points or 0.12% to 3,268.65, Nikkei 225 surged 50.84 points or 0.19% to 27,433.40 and Taiwan Weighted added 560.89 points or 3.62% to 15,493.82.