Markets extend previous session’s losses with negative start

With a negative opening Indian equity benchmarks have extended their previous session's losses and are trading lower by over half percent in early deals on Wednesday, which dragged both the Sensex and Nifty below their psychological 66,100 and 19,650 levels respectively. Weak cues from global markets weighed on the domestic sentiments. Traders were cautious as ratings agency Fitch cut the US credit rating from AAA to AA+, citing expected fiscal deterioration over the next three years. Traders were also concerned amid foreign fund outflows. According to the provisional data available on the NSE, foreign institutional investors (FII) sold shares worth net Rs 92.85 crore on August 1.  

On the global front, Asian markets are trading lower following mostly negative cues from global markets overnight. The US markets ended mostly in red on Tuesday ahead of U.S. jobs data and major companies’ earnings reports later this week. Back home, on the BSE sectoral front,  traders were seen pilling up position in Telecom, Consumer Disc and Basic Materials, while selling was witnessed in Metal, Capital Goods, Consumer Durables and Bankex. 

The BSE Sensex is currently trading at 66094.61, down by 364.70 points or 0.55% after trading in a range of 66055.01 and 66261.97. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.37%, while Small cap index up by 0.06%.

The top gaining sectoral indices on the BSE were Telecom up by 0.03%, Consumer Disc up by 0.02% and Basic Materials up by 0.01%, while Metal down by 1.11%, Capital Goods down by 0.68%, Consumer Durables down by 0.57%, Bankex down by 0.55% and FMCG down by 0.50% were the top losing indices on BSE.

The only gainers on the Sensex were Maruti Suzuki up by 0.44%, Power Grid up by 0.18%, Tech Mahindra up by 0.04% and Infosys up by 0.01%. On the flip side, Tata Steel down by 2.27%, Larsen & Toubro down by 1.44%, JSW Steel down by 1.09%, NTPC down by 0.93% and Titan down by 0.84% were the top losers.

Meanwhile, Minister of State for Finance Pankaj Chaudhary said the Gross Fixed Capital Formation (GFCF) in the Indian economy has increased from Rs. 45.41 lakh crore (constant 2011-12 prices) in 2018-19 to Rs 54.35 lakh crore in 2022-23 (Provisional Estimates). He said 'the government is implementing the 'Scheme for Special Assistance to States for Capital Expenditure' (2020-21 & 2021-22) and 'Scheme for Special Assistance to States for Capital Investment' (2022-23 & 2023-24).' 

He also said the government approved and released special assistance (loan) in the form of a 50-year interest-free loan for capital expenditure on capital projects in sectors like health, education, irrigation, and power etc for capital expenditure for different States.

Moreover, he said during 2023-24, Rs 84,883.90 crore have been sanctioned under Scheme for Special Assistance to States for Capital Expenditure/Investment to various states. He added Rs 29,517.66 crore have been disbursed so far during this fiscal.

The CNX Nifty is currently trading at 19620.80, down by 112.75 points or 0.57% after trading in a range of 19620.05 and 19678.25. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 0.80%, Coal India up by 0.64%, Divi's Lab up by 0.57%, Adani Ports up by 0.52% and Maruti Suzuki up by 0.47%. On the flip side, Tata Steel down by 2.31%, Hindalco down by 1.49%, Larsen & Toubro down by 1.39%, Tata Consumer down by 1.37% and Hero MotoCorp down by 1.24% were the top losers.

All Asian markets are trading lower; Taiwan Weighted lost 293.43 points or 1.73% to 16,919.44, Hang Seng declined 397.03 points or 2.02% to 19,614.09, Shanghai Composite weakened 27.75 points or 0.85% to 3,263.20, KOSPI dropped 38.84 points or 1.48% to 2,628.23, Jakarta Composite plunged 48.64 points or 0.71% to 6,837.86, Straits Times fell 30.89 points or 0.92% to 3,342.90 and Nikkei 225 slipped 674.7 points or 2.06% to 32,801.88.