Weak trade continues over Dalal Street

Weak trade persisted over the Dalal Street in early afternoon deals, with both Sensex and Nifty trading lower, on the back of heavy selling at Utilities and Power counters, despite positive cues from other Asian markets. The mood remained cautious with investors awaiting key inflation data from the U.S. for more clarity about the outlook for interest rates. The street paid no heed towards a private report stating that Indian economy is likely to continue its strong growth in the quarter to end of September, helped by a solid urban consumption and government spending, outpacing a slowing global economy squeezed by elevated interest rates and higher energy prices.

On the global front, Asian markets were trading mostly in green, after the value of retail sales in Japan was up 4.2 percent on year in October, coming in at 13.648 trillion yen. That missed forecasts for an increase of 5.9 percent and was down from the upwardly revised 6.2 percent gain in September (originally 5.8 percent). On a monthly basis, retail sales slumped 1.6 percent after adding 0.4 percent in the previous month.

The BSE Sensex is currently trading at 66684.08, down by 217.83 points or 0.33% after trading in a range of 66610.35 and 67020.11. There were 12 stocks advancing against 18 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 0.41%, while Small cap index was up by 0.36%.

The top gaining sectoral indices on the BSE were Healthcare up by 0.83%, Industrials up by 0.58%, Consumer Durables up by 0.53%, Capital Goods up by 0.52% and Oil & Gas up by 0.47%, while Utilities down by 1.31%, Power down by 0.86%, Bankex down by 0.54%, TECK down by 0.06% and IT down by 0.03% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.74%, Mahindra & Mahindra up by 1.57%, Titan up by 0.67%, JSW Steel up by 0.52% and Hindustan Unilever up by 0.51%. On the flip side, Tata Motors down by 1.85%, Power Grid down by 1.11%, HDFC Bank down by 0.93%, ICICI Bank down by 0.79% and NTPC down by 0.74% were the top losers.

Meanwhile, the National Sample Survey Office (NSSO) has said that the unemployment rate for people aged 15 years and above in urban areas declined to 6.6 per cent in the September quarter (Q2FY24) from 7.2 per cent a year ago. The unemployment rate in the March quarter of the previous fiscal was 6.8 per cent, while it was 6.6 per cent in AprilJune. The rate was 7.2 per cent in the third quarter of the previous fiscal.

According to the survey, the unemployment rate among females (aged 15 years and above) in urban areas declined to 8.6 per cent in July-September from 9.4 per cent in the same quarter a year ago. It was 9.1 per cent in April-June 2023, 9.2 per cent in January-March 2023 and 9.6 per cent in October-December 2022. Among males, the unemployment rate in urban areas dipped to 6 per cent in July-September compared to 6.6 per cent in the year-ago period. It was 5.9 per cent in April-June 2023, 6 per cent in January-March 2023 and 6.5 per cent in October-December 2022.

It also stated that labour force participation rate in Current Weekly Status (CWS) in urban areas for people aged 15 years and above increased to 49.3 per cent in the July-September quarter of 2023, from 47.9 per cent in the same period a year ago. It was 48.8 per cent in April-June 2023, 48.5 per cent in January-March 2023 and 48.2 per cent in October-December 2022.

The CNX Nifty is currently trading at 20052.90, down by 43.70 points or 0.22% after trading in a range of 20015.85 and 20136.15. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were SBI Life Insurance up by 2.29%, Hero MotoCorp up by 2.28%, Ultratech Cement up by 1.73%, Eicher Motors up by 1.71% and Mahindra & Mahindra up by 1.71%. On the flip side, Adani Enterprises down by 1.78%, Tata Motors down by 1.76%, HDFC Bank down by 1.00%, Power Grid down by 0.97% and Coal India down by 0.89% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 66.6 points or 0.39% to 17,060.04, Taiwan Weighted added 63.29 points or 0.36% to 17,433.85, Jakarta Composite gained 50.92 points or 0.72% to 7,087.01, Shanghai Composite strengthened 8.03 points or 0.27% to 3,029.72, KOSPI increased 15.48 points or 0.61% to 2,535.29 and Nikkei 225 surged 165.67 points or 0.49% to 33,486.89, while Straits Times fell 11.15 points or 0.36% to 3,073.55.