Markets trade in red in late morning deals

Domestic equity markets traded in red, after altering between positive and negative territories, in late morning deals owing to poor cues from global markets. Traders were concerned after US Federal Reserve Chair Jerome Powell reiterated the possibility of further rate hikes to tackle inflation. Markets Participants remained sidelines ahead of the Bank of England’s next monetary policy announcement. The central bank is expected to increase rates as inflation remains stubbornly high. Traders ignored report that provisional data from the National Stock Exchange showed foreign institutional investors (FII) bought shares worth Rs 4,013.10 crore on June 21.  On the BSE sectoral front, traders were seen pilling up position in Industrials, Capital Goods, Oil & Gas, Auto and Bankex, while selling was witnessed in IT, TECK, Power, Utilities and PSU. 

On the global front, Asian markets were trading mostly in red following negatives cues from US markets overnight. Back home, in the stock specific development, Sansera Engineering surged after around 14 per cent of the total equity of the auto ancilliary company changed hands.

The BSE Sensex is currently trading at 63422.18, down by 100.97 points or 0.16% after trading in a range of 63372.97 and 63601.71. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.30%, while Small cap index up by 0.16%.

The top gaining sectoral indices on the BSE were Industrials up by 0.38%, Capital Goods up by 0.26%, Oil & Gas up by 0.26%, Auto up by 0.19% and Bankex up by 0.15%, while IT down by 0.92%, TECK down by 0.76%, Power down by 0.57%, Utilities down by 0.32% and PSU down by 0.31% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 0.74%, HDFC up by 0.63%, Mahindra & Mahindra up by 0.59%, HDFC Bank up by 0.55% and Maruti Suzuki up by 0.42%. On the flip side, Tata Steel down by 2.06%, Infosys down by 1.52%, Bajaj Finance down by 1.15%, NTPC down by 0.85% and Hindustan Unilever down by 0.81% were the top losers.

Meanwhile, Union Minister Piyush Goyal has urged textiles industry to collaborate and partner for research and development (R&D) and innovation to jointly achieve greater strides in the textiles sector. He commended the industry for their enthusiasm to set up and expand businesses in the upcoming Pradhan Mantri Mega Integrated Textile Region and Apparel (PM MITRA) Parks.

The minister further encouraged the industry to take benefit from the existing attractive schemes of the Ministry of Textiles, including the National Technical Textiles Mission and Scheme For Capacity Building In Textile Sector (Samarth). He also suggested setting up a dedicated Invest India desk in the Ministry of Textiles to assist and handhold investors looking to set up or expand their manufacturing base to meet increasing global demand in the sector.

He further said the industry interaction revolved around the themes of Sustainability, introduction of R&D centres and making upcoming factories in the PM MITRA, ESG (environmental, social and governance) compliant and ensuring value added products are manufactured in the upcoming parks. He emphasized the need for phase-by-phase development of these parks for efficient utilization of resources and better integration of the textile value chain. He said it was suggested that two 5 member Action Teams be set up to study ESG norms and model park design in line with global leading practices for upcoming units in the PM MITRA parks.

The CNX Nifty is currently trading at 18830.45, down by 26.40 points or 0.14% after trading in a range of 18828.65 and 18886.60. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 1.25%, Hero MotoCorp up by 1.17%, BPCL up by 1.07%, HDFC Life Insurance up by 1.00% and Divi's Lab up by 0.87%. On the flip side, Tata Steel down by 2.24%, Infosys down by 1.41%, Cipla down by 1.32%, Tata Consumer Products down by 1.16% and Bajaj Finance down by 1.14% were the top losers.

Asian markets were trading mostly in red; Jakarta Composite plunged 5.54 points or 0.08% to 6,697.09, Straits Times fell 7.63 points or 0.24% to 3,216.03 and Nikkei 225 slipped 313.3 points or 0.93% to 33,261.84. However, KOSPI increased 7.67 points or 0.3% to 2,590.30.