Bourses continue to trade deep in red in late afternoon session

Key benchmark indices continued to trade deep in red in late afternoon session tracking weak European markets cues. The overall market breadth was negative as 2314 shares were declining and 1294 were advancing, while 152 shares were unchanged on the BSE. The broader indices, the BSE Mid cap index and Small cap index also traded under heavy selling pressure. Traders were cautious as retail inflation for farm workers and rural labourers surged in the month of August 2023. The All-India Consumer Price Index Number for Agricultural Labourers and Rural Labourers increased by 9 points and 8 points respectively to stand at 1224 and 1234 points respectively in August. 

On the global front, all Asian markets were trading lower after the U.S. Federal Reserve warned that interest rates will stay higher for longer to combat stubborn inflation. The Fed's hawkish tone on inflation and interest rates indicated that the U.S. central bank may not cut interest rates next year by as much as it was earlier thought. European markets were trading lower tracking overnight losses on Wall Street after the U.S. Federal Reserve signalled higher-for-longer interest rates, while investors awaited a key policy decision from the Bank of England.

The BSE Sensex is currently trading at 66183.85, down by 616.99 points or 0.92% after trading in a range of 66137.82 and 66608.67. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.92%, while Small cap index was down by 0.82%.

The top losing sectoral indices on the BSE were Auto down by 1.70%, Bankex down by 1.63%, PSU down by 1.58%, Utilities down by 1.27% and Power was down by 1.21%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Tech Mahindra up by 1.33%, Infosys up by 0.76%, Bharti Airtel up by 0.64% and Asian Paints up by 0.01%. On the flip side, Mahindra & Mahindra down by 3.18%, ICICI Bank down by 2.59%, SBI down by 2.54%, Indusind Bank down by 2.12% and Tata Motors down by 1.93% were the top losers.

Meanwhile, amid higher prices of food group, retail inflation for farm workers and rural labourers surged in the month of August 2023. The All-India Consumer Price Index Number for Agricultural Labourers and Rural Labourers increased by 9 points and 8 points respectively to stand at 1224 and 1234 points respectively in August.  

The major contribution towards the rise in general index of Agricultural Labourers and Rural Labourers came from food group to the extent of 8.38 and 7.69 points respectively mainly due to increase in prices of rice, wheat atta, pulses, milk, meat-goat, sugar, gur, chillies-dry, turmeric, garlic, onion, mixed spices, etc.

The rise in index varied from State to State. In case of Agricultural Labourers, it recorded an increase of 2 to 19 points in 20 States. Tamilnadu with 1423 points topped the index table whereas Himachal pradesh with 942 points stood at the bottom. In case of Rural Labourers, it recorded an increase of 2 to 18 points in 20 States. Andhra Pradesh with 1412 points topped the index table whereas Himachal pradesh with 1003 points stood at the bottom.

Amongst states, the maximum increase in the Consumer Price Index Numbers for Agricultural Labourers was experienced by Meghalaya (19 points) and for Rural Labourers by Gujarat and Meghalaya (18 points each) mainly due to rise in the prices of rice, pulses, beef, groundnut oil, onion, chillies green/dry, firewood, bus fare, etc.

The CNX Nifty is currently trading at 19733.10, down by 168.30 points or 0.85% after trading in a range of 19719.60 and 19848.75. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Adani Ports up by 1.44%, Tech Mahindra up by 1.27%, Dr. Reddy's Lab up by 0.87%, Bharti Airtel up by 0.78% and Infosys up by 0.71%. On the flip side, Mahindra & Mahindra down by 3.19%, ICICI Bank down by 2.53%, SBI down by 2.43%, Hero MotoCorp down by 2.26% and Bajaj Finserv down by 2.02% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 452.75 points or 1.39% to 32,571.03, Hang Seng declined 230.19 points or 1.3% to 17,655.41, Taiwan Weighted lost 218.08 points or 1.34% to 16,316.67, KOSPI dropped 44.77 points or 1.78% to 2,514.97, Straits Times fell 38.9 points or 1.21% to 3,203.10, Shanghai Composite weakened 23.87 points or 0.77% to 3,084.70 and Jakarta Composite was down by 20.88 points or 0.3% to 6,990.80.

European markets were trading lower; UK’s FTSE 100 decreased 32.88 points or 0.43% to 7,698.77, France’s CAC fell 68.43 points or 0.94% to 7,262.36 and Germany’s DAX was down by 109.95 points or 0.7% to 15,671.64.