Markets remain in red in late morning deals

Indian equity markets remained in red and were trading marginally lower in late morning deals. Losses in metal, IT and oil & gas shares led the headline indices lower.  Weak cues from global markets also weighted on domestic sentiments. There was some cautiousness in the markets amid concerns about the U.S. economy and the future pace of Fed rate hikes. A depreciating rupee, which slipped 6 paise to trade at 82.58 against the US dollar, made traders more nervous. Adani Group stocks were in focus after index provider MSCI said it will cut the weightings of four Adani Group companies.

On the global front, Asian markets were trading mostly in red following the broadly negative cues from US markets overnight, as the markets remain concerned over the outlook for interest rates amid the prospect of further policy tightening from the US Fed as part of its commitment to reign in stubborn inflation. Back home, in the stock specific development, Lupin tumbled after profit plunged 72% in December quarter.

The BSE Sensex is currently trading at 60693.10, down by 113.12 points or 0.19% after trading in a range of 60501.74 and 60774.14. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.01%, while Small cap index up by 0.74%.

The top gaining sectoral indices on the BSE were Telecom up by 0.82%, Industrials up by 0.67%, Capital Goods up by 0.63%, Auto up by 0.33% and PSU up by 0.21%, while Metal down by 1.31%, Utilities down by 1.20%, Power down by 0.91%, Energy down by 0.81% and Oil & Gas down by 0.70% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 1.18%, SBI up by 0.81%, Power Grid up by 0.73%, Maruti Suzuki up by 0.60% and Bajaj Finance up by 0.54%. On the flip side, HCL down by 2.73%, Tata Steel down by 1.66%, Indusind Bank down by 1.04%, Reliance Industries down by 0.96% and Hindustan Unilever down by 0.86% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has held a discussion with International Monetary Fund (IMF) managing director Kristalina Georgieva and urged the multi-lateral funding agency to develop a globally coordinated approach to the regulation of crypto assets. The finance minister held a virtual conversation with the IMF MD to discuss the upcoming G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, scheduled to be held in Bengaluru later this month.

Sitharaman stressed the need to ensure food and energy security for all and asked the IMF for support to the Indian Presidency in the form of detailed technical analysis to develop evidence-based policy guidance on the issue. She also informed Georgieva that debt issues will be at the forefront of G20 FinanceTrack discussions, and India will continue to support the ongoing efforts for orderly and timely implementation of the Common Framework.

Along with addressing debt vulnerabilities, both leaders also discussed other key deliverables, such as the timely completion of the 16th General Review of Quota (GRQ) to strengthen the Global Financial Safety Net.

The CNX Nifty is currently trading at 17857.15, down by 36.30 points or 0.20% after trading in a range of 17801.00 and 17876.95. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 1.88%, Bajaj Finserv up by 1.20%, Adani Enterprises up by 1.10%, HDFC Life Insurance up by 1.02% and SBI up by 0.80%. On the flip side, HCL down by 2.78%, Hindalco down by 2.08%, Tata Steel down by 1.71%, JSW Steel down by 1.13% and Indusind Bank down by 1.11% were the top losers.

Asian markets were trading mostly in red; Taiwan Weighted lost 12.06 points or 0.08% to 15,586.65, Hang Seng declined 410.26 points or 1.9% to 21,214.10, Shanghai Composite weakened 17.68 points or 0.54% to 3,252.70, KOSPI dropped 18.2 points or 0.73% to 2,463.32, Jakarta Composite plunged 91.79 points or 1.35% to 6,805.58 and Straits Times fell 5.94 points or 0.18% to 3,353.54. However, Nikkei 225 surged 86.63 points or 0.31% to 27,670.98.