Bourses widen losses in late afternoon session

Key benchmark indices widened their losses in late afternoon session due to heavy selling pressure in Metal stocks. Markets failed to take support from positive European markets. Traders took note of report that Commerce and Industry Minister Piyush Goyal said India’s trade deficit is falling at a rapid pace and the exports are expected to see positive growth in the coming months. Countries in the world are facing a slowdown and global trade is relatively weak right now. Given the challenging situation, high interest rates, and cut down in discretionary spending have led to a fall in the exports of readymade apparel and the gem and jewellery sector. He added lower petroleum prices have resulted in lower export numbers.

On the global front, Asian markets were trading mostly in red with profit booking in tech stocks and hawkish signals from some Federal Reserve officials weighing on regional markets. Investors also awaited more clarity on monetary policy from the Jackson Hole Symposium, where Fed Chair Jerome Powell is set to speak later in the day. European markets were trading higher as investors awaited remarks from the heads of the Federal Reserve and European Central Bank at a conference in Jackson Hole.

The BSE Sensex is currently trading at 64865.69, down by 386.65 points or 0.59% 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 declined 0.82%, while Small cap index was down by 0.40%.

The only gaining sectoral indices on the BSE was Telecom up by 0.90%, while Realty down by 1.41%, Utilities down by 1.19%, Metal down by 1.16%, Capital Goods down by 1.15% and Power was down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were Bajaj Finserv up by 2.02%, Asian Paints up by 0.89%, Bajaj Finance up by 0.88%, Bharti Airtel up by 0.44% and JIO Financial up by 0.28%. On the flip side, Indusind Bank down by 1.95%, JSW Steel down by 1.86%, Tata Motors down by 1.69%, Larsen & Toubro down by 1.61% and Ultratech Cement down by 1.59% were the top losers.

Meanwhile, the Reserve Bank of India (RBI) in its ‘minutes of the recent monetary policy committee (MPC) meeting’ has said that the headline inflation is likely to witness a spike in the near months on account of supply disruptions due to adverse weather conditions. It said there are risks from the impact of the skewed south-west monsoon so far, a possible El Nino event and upward pressures on global food prices due to geopolitical hostilities.

RBI further noted that domestic economic activity is holding up well, supported by domestic demand in spite of the drag from weak external demand. With the cumulative rate hike of 250 basis points undertaken by the MPC working its way into the economy, the MPC decided to keep the policy repo rate unchanged at 6.50 per cent, but with preparedness to undertake policy responses, should the situation so warrant.

It further said the MPC will maintain a close vigil on the evolving inflation scenario and remain resolute in its commitment to aligning inflation to the target and anchoring inflation expectations. The MPC also decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth.

The CNX Nifty is currently trading at 19262.45, down by 124.25 points or 0.64% after trading in a range of 19229.70 and 19339.55. There were 8 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were JIO Financial up by 2.32%, Bajaj Finserv up by 2.10%, Bajaj Finance up by 0.85%, ONGC up by 0.81% and Asian Paints up by 0.80%. On the flip side, Tata Motors down by 2.49%, Adani Ports down by 1.99%, JSW Steel down by 1.94%, Indusind Bank down by 1.92% and Mahindra & Mahindra down by 1.78% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 662.93 points or 2.1% to 31,624.28, Taiwan Weighted lost 289.29 points or 1.76% to 16,481.58, Hang Seng declined 92.78 points or 0.51% to 18,119.39, Jakarta Composite plunged 23.9 points or 0.35% to 6,875.49, KOSPI dropped 18.54 points or 0.74% to 2,519.14 and Shanghai Composite was down by 0.1 points or 0% to 3,082.14. On the flip side, Straits Times was up by 6.91 points or 0.22% to 3,187.63.

European markets were trading higher; UK’s FTSE 100 increased 23.25 points or 0.32% to 7,356.88, France’s CAC rose 35.88 points or 0.5% to 7,250.34 and Germany’s DAX was up by 31.85 points or 0.2% to 15,653.34.