Markets trade in red in late morning deals

Domestic equity indices were trading in red in late morning deals on account of selling in banking and NBFC industries related companies namely Bajaj Finance, ICICI Bank, Axis Bank and HDFC Bank. Meanwhile, broader indices were also trading in red. Negative cues from other Asian markets weighed on the domestic sentiments. Traders were cautious after a private report said that the much anticipated free trade agreement between India and the United Kingdom is likely to be delayed yet again owing to certain differences between the two countries, especially on the question of trade in goods and services. 

On the global front, Asian markets were trading mostly in red despite economic data from China showed stronger-than-expected growth. China posted 4.9% growth in the July to September quarter from a year earlier, according to a release from China’s National Bureau of Statistics. Street expected the country’s economy to report growth of 4.4%. Back home, on the sectoral front, traders were seen pilling up position in Healthcare, TECK, IT, Metal and Auto, while selling was witnessed in Bankex, Realty, PSU, Power and Utilities. 

The BSE Sensex is currently trading at 66105.49, down by 322.60 points or 0.49% after trading in a range of 66041.84 and 66475.27. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.48%, while Small cap index down by 0.23%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.58%, TECK up by 0.30%, IT up by 0.19%, Metal up by 0.12% and Auto up by 0.09%, while Bankex down by 1.09%, Realty down by 1.00%, PSU down by 0.80%, Power down by 0.76% and Utilities down by 0.74% were the top losing indices on BSE.

The top gainers on the Sensex were Sun Pharma up by 2.03%, Tata Motors up by 1.06%, Infosys up by 0.78%, Maruti Suzuki up by 0.33% and JSW Steel up by 0.30%. On the flip side, Bajaj Finance down by 1.78%, ICICI Bank down by 1.35%, Axis Bank down by 1.20%, HDFC Bank down by 1.16% and Kotak Mahindra Bank down by 1.16% were the top losers.

Meanwhile, the World Steel Association (Worldsteel) has said that after a growth of 9.3 per cent in 2022, the demand for steel in India is expected to register a 'healthy growth' of 8.6 per cent in 2023 and 7.7 per cent in 2024.  It forecasts that global steel demand will grow 1.8 per cent in 2023 and reach 1,814.5 MT after having contracted by 3.3 per cent in 2022. In 2024, the demand will see an increase of 1.9 per cent to 1,849.1 MT.

The global body said the Indian economy remains stable against the pressure of high interest rate environment, and the steel demand is expected to continue its high growth momentum. Growth in India's construction sector is driven by government spending on infrastructure and recovery in private investment. Infrastructure investment will also support the capital goods sector growth. 

It further said healthy growth momentum will continue in automotive. The consumer durables sector is the only sector that is underperforming due to higher inflation/interest rates that constrain discretionary spending. However, it will improve in 2024 with festive season spending and progress in the Production Linked Investment (PLI) schemes.

The CNX Nifty is currently trading at 19738.80, down by 72.70 points or 0.37% after trading in a range of 19717.20 and 19840.95. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were Cipla up by 3.45%, Sun Pharma up by 1.95%, Dr. Reddy's Lab up by 1.82%, Hindalco up by 1.30% and Tata Motors up by 1.08%. On the flip side, Bajaj Finance down by 1.99%, Bajaj Finserv down by 1.33%, ICICI Bank down by 1.25%, Kotak Mahindra Bank down by 1.18% and Axis Bank down by 1.18% were the top losers.

Asian markets were trading mostly in red; Hang Seng declined 20.81 points or 0.12% to 17,752.53, Taiwan Weighted lost 206.09 points or 1.24% to 16,436.46, Straits Times fell 25.75 points or 0.81% to 3,146.08, Shanghai Composite weakened 21.76 points or 0.71% to 3,061.74 and Jakarta Composite plunged 15.86 points or 0.23% to 6,923.76. However, KOSPI increased 0.85 points or 0.03% to 2,461.02 and Nikkei 225 surged 52.92 points or 0.17% to 32,093.21.