Domestic indices trade flat with negative bias in late morning deals

Domestic equity indices traded flat with negative bias in late morning deals on account of selling in banking and NBFCs related companies stocks namely Axis Bank, SBI, Bajaj Finance and ICICI Bank. Traders were cautious after the Reserve Bank of India (RBI) has tightened norms for unsecured personal loans for banks and non-banking financial companies (NBFCs). Some cautiousness also prevailed in the markets after the Reserve Bank of India (RBI) in its November bulletin said India is not home-free with regards to the pressures of high prices but the moderation in retail inflation over the last two months is a relief. It stated ‘We are not out of the woods yet and have miles to go, but (inflation) readings of around 5% and 4.9% in September and October, respectively, are a welcome relief from the average of 6.7% in 2022-23 and 7.1% in July-August 2023’. However, broader indices were trading in green with BSE Mid cap index and Small cap index gaining in the range of 0.25%- 0.50%. 

On the global front, Asian markets were trading mixed after the latest batch of data from the U.S., Europe and Asia raised worries about an economic slowdown. Back home, on the sectoral front, traders were seen pilling up position in Industrials, Healthcare, FMCG, Auto and Consumer Disc, while selling was witnessed in Bankex, Oil & Gas, PSU, Energy and Metal. 

The BSE Sensex is currently trading at 65918.35, down by 64.13 points or 0.10% after trading in a range of 65639.74 and 66037.69. There were 20 stocks advancing against 10 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.25%, while Small cap index up by 0.46%.

The top gaining sectoral indices on the BSE were Industrials up by 0.84%, Healthcare up by 0.76%, FMCG up by 0.74%, Auto up by 0.71% and Consumer Disc up by 0.66%, while Bankex down by 1.17%, Oil & Gas down by 0.54%, PSU down by 0.53%, Energy down by 0.41% and Metal down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Asian Paints up by 2.03%, Hindustan Unilever up by 1.04%, Mahindra & Mahindra up by 0.90%, Nestle up by 0.90% and Maruti Suzuki up by 0.81%. On the flip side, Axis Bank down by 3.07%, SBI down by 3.06%, Bajaj Finance down by 1.82%, ICICI Bank down by 0.87% and Indusind Bank down by 0.66% were the top losers.

Meanwhile, the government is considering several measures such as a flexible framework for sale of products manufactured in special economic zones (SEZs) in the domestic market, easy de-notification norms, and streamlining approval processes for units. The aim is to help revive SEZs and facilitate business transactions between SEZ and domestic tariff area (DTA) or the domestic market. SEZs are enclosures which are treated as foreign territories for trade and customs duties, with restrictions on duty-free sales outside these zones in the domestic market.

To seek views of different ministries on these measures, the commerce ministry has circulated a note on a draft SEZ (special economic zone) amendment bill 2023. The inter-ministerial consultation is going at a fast pace and the bill is likely to be introduced in the forthcoming Winter session of Parliament which will commence on December 4 and continue till December 22. This amendment bill will be introduced in place of the proposed Development of Enterprise and Service Hubs (DESH) bill.

The amendment bill is aimed to help revive SEZs and facilitate business transactions between SEZ and DTA. It proposes to allow sales from SEZ to DTA on duty foregone basis; permitting partial de-notification of zones; easier notification norms; streamlining of approval for SEZs units. Recently, Commerce and Industry Minister Piyush Goyal said the government is looking at easing certain restrictions for units in SEZs to promote the sector's growth.

The CNX Nifty is currently trading at 19765.05, down by 0.15 points after trading in a range of 19667.45 and 19806.00. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were SBI Life up by 4.70%, HDFC Life Insurance up by 3.32%, Apollo Hospital up by 2.11%, Asian Paints up by 2.07% and Hero MotoCorp up by 1.82%. On the flip side, Axis Bank down by 3.01%, SBI down by 2.82%, ONGC down by 2.23%, Bajaj Finance down by 1.72% and ICICI Bank down by 0.92% were the top losers.

Asian markets were trading mixed; Hang Seng declined 388.1 points or 2.22% to 17,444.72, Straits Times fell 16.29 points or 0.52% to 3,116.76, KOSPI dropped 22.49 points or 0.91% to 2,465.69, Shanghai Composite weakened 8.56 points or 0.28% to 3,042.37. However, Nikkei 225 surged 140.82 points or 0.42% to 33,565.23, Taiwan Weighted added 49.58 points or 0.29% to 17,220.76 and Jakarta Composite gained 4.96 points or 0.07% to 6,962.97.