Bourses remain in red in late morning deals

Bourses remained in red and were trading lower in the range of 0.35- 0.45% in late morning deals, dragged by financials stocks on the central bank's move to mop-up excess liquidity. Weak cues from other Asian markets also weighed on the domestic sentiments. Depreciation in Indian rupee against dollar too weighed down sentiments. Rupee weakened by 12 paise to 82.78 against the dollar at the Inter-bank Foreign Exchange market on account of increased demand for the American currency from importers and banks. Traders ignored finance minister Nirmala Sitharaman’s statement that while the global economy is struggling, India is uniquely positioned to be optimistic and positive about its future growth.

On the global front, Asian markets were trading lower despite the positive cues from US markets overnight, as traders continued to digest weak data from China and remain concerned about slow economic recovery in China after reporting the first consumer price deflation in more than two years. Back home, in the stock specific development, Kirloskar Oil Engines rallied after the company reported a strong 60 per cent growth in its standalone net profit at Rs 103 crore in June quarter (Q1FY24). 

The BSE Sensex is currently trading at 65451.57, down by 236.61 points or 0.36% after trading in a range of 65358.11 and 65727.80. There were 7 stocks advancing against 23 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.19%, while Small cap index up by 0.08%.

The top gaining sectoral indices on the BSE were PSU up by 0.50%, Consumer Durables up by 0.42%, Realty up by 0.38%, Telecom up by 0.31% and Industrials up by 0.29%, while Healthcare down by 0.84%, FMCG down by 0.68%, Metal down by 0.38%, Bankex down by 0.36% and TECK down by 0.25% were the top losing indices on BSE.

The top gainers on the Sensex were HCL up by 2.96%, Power Grid up by 1.26%, Tata Steel up by 1.12%, Titan up by 0.67% and SBI up by 0.24%. On the flip side, Sun Pharma down by 1.60%, Indusind Bank down by 1.40%, Tech Mahindra down by 1.37%, Wipro down by 1.15% and NTPC down by 1.10% were the top losers.

Meanwhile, apparel export promotion council (AEPC) has said that non-tariff barriers (NTBs) are gradually emerging as a potent tool to damage and even disrupt legitimate textiles trade. It said as many as 131 NTB notifications are issued related to the textile sector since 2019 with Uganda at the top position with 71 notifications. It was followed by Ecuador (10), China (8), Taiwan (7), Israel (5), USA (4), and Peru (3).

AEPC has stated that these barriers include certifications, inspections, regulations, standards, SPS (sanitary and phyto-sanitary - related with plants and animals) measures, and technical barriers to trade (TBT). These measures are by and large in conformity with the rules of the World Trade Organisation (WTO). But when these measures are used unfairly, in violation of WTO agreements to discriminate against imports and restrict market access, then they become non-tariff barriers hampering legitimate trade. The council has organized a webinar on emerging non-tariff barriers in the apparel export sector with an aim to sensitize the industry about the issue.

Mithileshwar Thakur, Secretary General, AEPC, has said NTBs have slowly but surely emerged as a potent tool to damage and even disrupt legitimate trade. He noted that of late, innovative ways were being explored by developed economies like the European Union to restrict imports from developing countries. He also said legislations like CBAM (Carbon Border Adjustment Mechanism) and EUDR (EU Deforestation Legislation) are violative of WTO agreements and bound to make Indian exports to the EU less competitive. He added that ways and means need to be explored to handle the challenges arising out of these legislations.

The CNX Nifty is currently trading at 19465.85, down by 77.25 points or 0.40% after trading in a range of 19441.65 and 19557.75. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were HCL up by 2.93%, Power Grid up by 1.34%, Tata Steel up by 1.04%, Titan up by 0.77% and Apollo Hospital up by 0.71%. On the flip side, Sun Pharma down by 1.62%, SBI Life down by 1.38%, Indusind Bank down by 1.38%, Tech Mahindra down by 1.34% and Tata Consumer down by 1.33% were the top losers.

Asian markets were trading in red; Taiwan Weighted lost 33.45 points or 0.2% to 16,601.25, Hang Seng declined 111.75 points or 0.58% to 19,136.51, Shanghai Composite weakened 41 points or 1.28% to 3,213.56, KOSPI dropped 8.96 points or 0.35% to 2,592.60, Jakarta Composite plunged 22.22 points or 0.32% to 6,871.06 and Straits Times fell 33.24 points or 1.01% to 3,289.69.