Bourses continue to reel under selling pressure in late afternoon session

Indian equity markets continued to reel under pressure in late afternoon session on account of selling in frontline counters. Selling was witnessed in Metal, Banking and Oil & Gas sectors’ stocks. However, the broader indices, the BSE Mid cap index and Small cap index traded in green. The overall market breadth was negative as 1810 shares were declining and 1663 were advancing, while 125 shares were unchanged on the BSE. Sentiments remained downbeat with Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT) Rajesh Kumar Singh’s statement that hardening interest rates globally and worsening geo-political situation have impacted the foreign direct investment (FDI) inflows into India in 2022-23. On the global front, all Asian markets were trading lower as China manufacturing data disappointed and caution crept in ahead of a vote in Congress to raise the U.S. debt ceiling. European markets were trading lower as jitters remained over the U.S. debt ceiling bill ahead of the June 5 deadline. 

The BSE Sensex is currently trading at 62501.76, down by 467.37 points or 0.74% after trading in a range of 62401.02 and 62876.77. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.03%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Telecom up by 0.87%, TECK up by 0.61%, IT up by 0.55%, Healthcare up by 0.34% and Consumer Durables was up by 0.22%, while Bankex down by 1.30%, Utilities down by 1.25%, Power down by 1.08%, Metal down by 0.92% and Energy was down by 0.84% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.17%, Tech Mahindra up by 2.13%, Sun Pharma up by 1.62%, Asian Paints up by 1.27% and Tata Motors up by 1.26%. On the flip side, Axis Bank down by 2.70%, HDFC down by 1.97%, HDFC Bank down by 1.83%, SBI down by 1.74% and NTPC down by 1.56% were the top losers.

Meanwhile, Union Commerce and Industry Minister Piyush Goyal, during 2nd meeting of Apex Monitoring Authority of National Industrial Corridor Development and Implementation Trust (NICDIT), has said that India is making rapid strides towards Aatmnirbharta and continuous support from States will be the best contribution in this nation building process.

Union Commerce and Industry Minister urged the State Governments to expedite acquisition of contiguous, litigation encumbrance free land and grant early environmental clearances for the NICDIT projects. He further stated that States should focus on expediting the finalization and execution of the Shareholders Agreements and State Support Agreements.

The Minister further directed NICDC to foreclose the projects where the State Government is not able to provide committed land in a time bound manner and to conceive projects in other states that are willing to offer land to expedite investments in their respective states. Goyal also emphasized upon the financial viability of the projects. He urged the States for faster allotment of lands at reasonable rates. He stated that States should adopt innovative models and offer package deals etc. for faster investments. He said that electricity rates should be affordable and consistent as high rates of electricity are a deterrent to the industry.

The CNX Nifty is currently trading at 18509.95, down by 123.90 points or 0.66% after trading in a range of 18483.85 and 18603.90. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.18%, Bharti Airtel up by 2.07%, Sun Pharma up by 1.60%, Britannia up by 1.34% and Tata Motors up by 1.31%. On the flip side, Axis Bank down by 2.61%, HDFC down by 1.95%, ONGC down by 1.89%, HDFC Bank down by 1.85% and SBI down by 1.73% were the top losers.

All Asian markets were trading lower, KOSPI dropped 8.4 points or 0.33% to 2,577.12, Shanghai Composite weakened 19.65 points or 0.61% to 3,204.56, Straits Times fell 22.22 points or 0.7% to 3,165.34, Taiwan Weighted lost 43.78 points or 0.26% to 16,578.96, Jakarta Composite plunged 55.74 points or 0.85% to 6,580.68, Hang Seng declined 361.51 points or 1.98% to 18,234.27 and Nikkei 225 was down by 440.28 points or 1.43% to 30,887.88.

European markets were trading lower, UK’s FTSE 100 decreased 16.79 points or 0.22% to 7,505.28, France’s CAC fell 43.36 points or 0.61% to 7,166.39 and Germany’s DAX was down by 66.86 points or 0.42% to 15,842.05.