Markets remain in red in late morning deals

Domestic equity markets trimmed some of their losses but continued to trade in red during late morning deals amid a weak trend in global markets. Meanwhile, broader indices on the BSE were also trading in red in the range of 0.25-0.65%. Cautiousness prevailed in the markets as investors prepared for signals on U.S. monetary policy from central bankers’ comments at the Jackson Hole meeting today, including a speech by U.S. Federal Reserve chair Jerome Powell. Depreciation in Indian rupee against dollar too weighed down sentiments. Rupee weakened by 10 paise to 82.67 against the dollar at the Inter-bank Foreign Exchange market on account of increased demand for the American currency from importers and banks. On the sectoral front, traders were seen pilling up position only in Telecom and Energy, while selling was witnessed in Realty, Utilities, Capital Goods, PSU and Power. 

On the global front, Asian markets were trading mostly in red, following weak cues from US markets overnight, on renewed concerns over a Chinese economic slowdown amid troubles in the property market. Back home, in the stock specific development, Shoppers Stop slumped a day after the Indian departmental store operator said its CEO Venu Nair resigned.  

The BSE Sensex is currently trading at 65001.90, down by 250.44 points or 0.38% after trading in a range of 64732.57 and 65106.00. There were 7 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.62%, while Small cap index down by 0.25%.

The only gaining sectoral indices on the BSE were Telecom up by 0.78% and Energy up by 0.01%, while Realty down by 1.06%, Utilities down by 0.84%, Capital Goods down by 0.84%, PSU down by 0.81% and Power down by 0.77% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 1.69%, Bajaj Finance up by 0.99%, Asian Paints up by 0.90%, Reliance Industries up by 0.18% and Kotak Mahindra Bank up by 0.12%. On the flip side, Indusind Bank down by 1.96%, Larsen & Toubro down by 1.40%, Ultratech Cement down by 1.17%, Tech Mahindra down by 1.14% and SBI down by 1.13% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India's trade deficit is falling at a rapid pace and the exports are expected to see positive growth in the coming months. He said that countries in the world are facing a slowdown and global trade is relatively weak right now. 

Given the challenging situation, the minister said high interest rates, and cut down in discretionary spending have led to a fall in the exports of ready-made apparel and the gem and jewellery sector, and added that lower petroleum prices have resulted in lower export numbers. 

Talking about his bilateral meetings, Goyal said that more and more countries are looking at expanding trade and business with India and there is a lot of interest to invest in India. As Chandrayaan-3 successfully soft-landed on the Moon to propel India into an elite group of nations, he said that at least three countries approached him for a partnership with India in the space sector. He also said ‘so, space is going to become a new frontier in which India will provide a leadership role at affordable competitive prices, modern technology and with full self-reliance, where we have the capabilities of our people to reach the moon and aspire for beyond’.

The CNX Nifty is currently trading at 19312.75, down by 73.95 points or 0.38% after trading in a range of 19229.70 and 19339.55. There were 11 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were JIO Financial up by 2.11%, Bajaj Finserv up by 1.72%, Bajaj Finance up by 0.81%, ONGC up by 0.81% and Asian Paints up by 0.80%. On the flip side, Indusind Bank down by 2.01%, Tech Mahindra down by 1.27%, Hindalco down by 1.23%, Ultratech Cement down by 1.18% and Larsen & Toubro down by 1.16% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 215.12 points or 1.18% to 17,997.05, Taiwan Weighted lost 266.76 points or 1.62% to 16,504.11, Shanghai Composite weakened 17.89 points or 0.58% to 3,064.35, Jakarta Composite plunged 23.9 points or 0.35% to 6,875.49, KOSPI dropped 18.02 points or 0.71% to 2,519.66 and Nikkei 225 slipped 655.67 points or 2.03% to 31,631.54. However, Straits Times rose 0.72 points or 0.02% to 3,181.44.