Weak trade continues over Dalal Street

Weak trade continued over the Dalal Street in early noon deals, with both Sensex and Nifty witnessing losses, on the back of negative cues from other Asian markets. Traders got worried, amid a private report predicting that higher food prices likely nudged up India's annual retail inflation last month from a 12-month low in December, but it stayed within the Reserve Bank of India's targeted range for a third consecutive month. Some concerns came with another report that a year of war in Ukraine has already made a dent in world prosperity. But its deeper impact will be felt in how the conflict plays into shifts that were already reshaping the global economy before Russia's tanks rolled in. The street overlooked a report stating that India’s national accreditation system under the Quality Council of India (QCI) has been ranked 5th in the world in the recent Global Quality Infrastructure Index (GQII) 2021.

On the global front, Asian markets were trading mostly in red, after China's consumer price inflation increased in January with the rise in demand during the Lunar New Year holiday and the easing of Covid restrictions, while the decline in producer prices deepened due to falling commodity prices. Consumer price inflation rose to 2.1 percent in January from 1.8 percent in December.

The BSE Sensex is currently trading at 60620.45, down by 185.77 points or 0.31% after trading in a range of 60501.74 and 60774.14. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.03%, while Small cap index was up by 0.67%.

The top gaining sectoral indices on the BSE were Telecom up by 0.66%, Realty up by 0.61%, Industrials up by 0.50%, Capital Goods up by 0.46% and Auto up by 0.29%, while Utilities down by 1.38%, Metal down by 1.27%, Power down by 1.07%, Energy down by 0.89% and Oil & Gas down by 0.72% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 0.90%, SBI up by 0.90%, Power Grid Corporation of India up by 0.52%, Mahindra & Mahindra up by 0.38% and Bajaj Finance up by 0.28%. On the flip side, HCL Technologies down by 2.94%, Tata Steel down by 1.89%, Reliance Industries down by 1.08%, ITC down by 1.00% and Hindustan Unilever down by 0.97% were the top losers.

Meanwhile, Union Minister for Culture and Tourism G Kishan Reddy has said that the footfall of foreign tourists in India has reached 75 per cent level of what it was in 2019 before the COVID-19 pandemic broke out. He hoped that by December 2023, the footfall of foreign tourists would not only return to pre-pandemic level, but the country would also register a record number of tourists.

The minister said the number of domestic tourists within the country is also on a rise. He said for example, Jammu and Kashmir had record number of tourists which was not seen ever earlier. Australian tourists have come to India in numbers more than it was in 2019, while the number of tourists from the US has reached 85 per cent of the pre-Covid level. He said ‘I have full faith, by December 2023, the foreign tourist footfall will not only reach the pre-COVID level, but cross it’.

Reddy further said the Centre is working towards promotion of tourism in the country and committed to making it number one in the world. He also called on stakeholders from the tourism and hospitality industry to contribute to this effort. He said India is hosting the G20 summit this year and delegations from all participating countries will be visiting the country. He also exhorted tourism and hospitality stakeholders to provide best of facilities to the visitors in line with Indian philosophies of 'Vasudhaiv Kutumbkam' and 'Atithi Devo Bhava’.

The CNX Nifty is currently trading at 17835.85, down by 57.60 points or 0.32% after trading in a range of 17801.00 and 17876.95. There were 19 stocks advancing against 30 stocks declining, while one stock remained unchanged on the index.

The top gainers on Nifty were Adani Ports and Special Economic Zone up by 1.83%, HDFC Life Insurance up by 1.20%, Bajaj Finserv up by 0.90%, Adani Enterprises up by 0.89% and Hero MotoCorp up by 0.88%. On the flip side, HCL Technologies down by 3.01%, Hindalco down by 2.16%, Tata Steel down by 2.07%, Reliance Industries down by 1.18% and Hindustan Unilever down by 1.02% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 435.85 points or 2.02% to 21,188.51, Jakarta Composite plunged 90.37 points or 1.31% to 6,807.00, Taiwan Weighted lost 12.06 points or 0.08% to 15,586.65, KOSPI dropped 11.79 points or 0.48% to 2,469.73, Shanghai Composite weakened 11.09 points or 0.34% to 3,259.29 and Straits Times fell 2.91 points or 0.09% to 3,356.57, while Nikkei 225 surged 86.63 points or 0.31% to 27,670.98.