Benchmarks trim losses in morning deals

Indian equity benchmarks trimmed most of their initial losses but continued to trade in red in morning deals, tracking weakness in global counterparts. Traders remained on sidelines ahead of macro-economic data -- consumer price index (CPI) and Index of Industrial Production (IIP) -- due to be released later in the day. However, losses got trimmed as traders took some support with CRISIL Rating stating that India’s vulnerability to global shocks is expected to reduce in FY24 as the Current Account Deficit (CAD) improves amid challenging external financing conditions. CAD is India’s major short-term external liability, affecting the exchange rate and investor sentiment. After peaking at 3.7 per cent of Gross Domestic Product (GDP) in the second quarter of the previous fiscal (FY22), CAD shrank significantly to 2.2 per cent in the third quarter of FY23. This decline was driven by falling oil imports, boost from services exports, and rising remittances. On the global front, Asian markets are trading mostly in red after soft economic data from U.S. and China magnified concerns of a global slowdown. 

The BSE Sensex is currently trading at 61776.22, down by 128.30 points or 0.21% after trading in a range of 61578.15 and 61858.01. 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 0.05%, while Small cap index was up by 0.14%.

The top gaining sectoral indices on the BSE were Auto up by 0.87%, Consumer Durables up by 0.35%, Realty up by 0.15% and Bankex up by 0.03%, while Utilities down by 1.25%, Metal down by 1.07%, Oil & Gas down by 1.02%, Power down by 0.96% and Energy down by 0.78% were the top losing indices on BSE.

The top gainers on the Sensex were Tata Motors up by 1.06%, Bajaj Finance up by 0.65%, Axis Bank up by 0.59%, Mahindra & Mahindra up by 0.54% and Asian Paints up by 0.48%. On the flip side, Power Grid Corporation down by 1.73%, Tata Steel down by 1.24%, NTPC down by 1.23%, Infosys down by 0.78% and ITC down by 0.62% were the top losers.

Meanwhile, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh has said that the government is working on a proposal to bring out the policy for online retailers and e-commerce rules under the consumer protection act on the same page to protect consumers. He said that once the e-commerce policy will be finalised, it will be put up in the public domain for views.

Singh said ‘we are holding discussions to harmonise e-commerce policy and e-commerce rules under the consumer protection act...While doing so, we will try to ensure that whether a regulator or some other way...rules that will ensure that the customer is the king.’ He also said ‘So the e-commerce policy and e-commerce rules under the consumer protection act both will be brought on the same page...Kind of congruent with each other. That is the idea and we are working on that.’ He added that the talks are at an advanced stage.

Talking about the government-promoted Open Network for Digital Commerce (ONDC), the secretary said that it would help democratise the e-commerce sector in the country. He said that no funding and no tailor-made policies would be there specifically to promote the network. 

The CNX Nifty is currently trading at 18261.80, down by 35.20 points or 0.19% after trading in a range of 18194.55 and 18277.30. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 5.72%, Bajaj Auto up by 1.74%, Tata Motors up by 1.11%, Hero MotoCorp up by 0.76% and Axis Bank up by 0.66%. On the flip side, BPCL down by 2.64%, Hindalco down by 2.48%, Divi's Lab down by 2.16%, Power Grid Corporation down by 1.55% and NTPC down by 1.25% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 48.5 points or 0.25% to 19,695.29, Shanghai Composite weakened 21.43 points or 0.65% to 3,288.12, KOSPI dropped 11.37 points or 0.46% to 2,479.63, Jakarta Composite plunged 32.26 points or 0.48% to 6,723.68 and Straits Times fell 25.07 points or 0.78% to 3,204.48.

On the flip side, Nikkei 225 surged 260.06 points or 0.89% to 29,386.78 and Taiwan Weighted added 15.11 points or 0.1% to 15,529.75.