Markets continue to trade in red in late morning deals

Domestic equity markets continued to trade in red in late morning deals on account of profit booking after the sharp run up of the last two weeks. Selling in IT stocks namely TCS, Wipro, HCL Tech and Tech Mahindra pressured the markets to trade below neutral lines. Mixed cues from other Asian markets also put some pressure on the domestic sentiments. However, losses were limited as International Monetary Fund (IMF) said India's robust economic growth, propelled by key reforms in digitisation and infrastructure, positions it as a leading global contributor, accounting for over 16 per cent of the world's growth. On the sectoral front, traders were seen pilling up position in FMCG, Energy, Oil & Gas, Consumer Durables and Healthcare, while selling was witnessed in IT, TECK, Metal, Auto and Basic Materials. 

On the global front, Asian markets were trading mostly mixed. However, Japan’s Nikkei 225 index jumped after the Bank of Japan left its main policy rate unchanged at its final meeting of the year. The BOJ made no change to its negative interest rate policy, holding the benchmark interest rate at -0.1%. The central bank also kept its stance on its yield curve control policy unchanged. Back home, in the stock specific development, Vedanta rose after the company declared a second interim dividend of Rs 11 per share for fiscal 2024.  

The BSE Sensex is currently trading at 71260.52, down by 54.57 points or 0.08% after trading in a range of 71071.98 and 71569.20. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading Mixed; the BSE Mid cap index was down by 0.33%, while Small cap index up by 0.12%.

The top gaining sectoral indices on the BSE were FMCG up by 1.16%, Energy up by 0.81%, Oil & Gas up by 0.37%, Consumer Durables up by 0.32% and Healthcare up by 0.15%, while IT down by 1.36%, TECK down by 1.17%, Metal down by 0.71%, Auto down by 0.70% and Basic Materials down by 0.58% were the losing indices on BSE.

The top gainers on the Sensex were Nestle up by 5.41%, Reliance Industries up by 1.23%, Hindustan Unilever up by 0.99%, NTPC up by 0.99% and ITC up by 0.77%. On the flip side, Wipro down by 1.82%, TCS down by 1.71%, HCL down by 1.63%, Tech Mahindra down by 1.58% and Tata Steel down by 1.24% were the top losers.

Meanwhile, Minister of State for Finance Bhagwat Karad has said that the government is likely to achieve the fiscal deficit target of 5.9 per cent of the Gross domestic product (GDP) in the current financial year (FY24). He noted that so far in the current fiscal, the government has realised about Rs 10,050 crore through disinvestment in various Central Public Sector Enterprises (CPSEs). 

The minister said fiscal deficit depends upon many factors such as total expenditure, total non-debt receipts and GDP etc. for the financial year. Tax and non-tax receipts constitute major proportion of the government's total non-debt receipts. The budget had pegged disinvestment receipts in the current fiscal at Rs 51,000 crore. He said the budget estimate for disinvestment receipts in the current FY 2023-24 was fixed based on the probability of completion of the transactions. 

However, he said disinvestment is an ongoing process, and execution of disinvestment transactions depends upon administrative feasibility, market conditions, domestic and global economic outlook, and investor interest. He said in view of this, it is difficult to anticipate the quantum of actual proceeds from disinvestment during the current FY 2023-24. 

The CNX Nifty is currently trading at 21390.20, down by 28.45 points or 0.13% after trading in a range of 21337.75 and 21480.00. There were 20 stocks advancing against 30 stocks declining on the index.

The top gainers on Nifty were Nestle up by 5.40%, Tata Consumer up by 2.48%, Coal India up by 1.29%, Reliance Industries up by 1.22% and NTPC up by 1.01%. On the flip side, Adani Ports down by 2.02%, Wipro down by 1.93%, Hindalco down by 1.77%, TCS down by 1.76% and HCL down by 1.68% were the top losers.

Asian markets were trading mixed; Hang Seng declined 83.52 points or 0.5% to 16,545.71, Taiwan Weighted lost 90.66 points or 0.52% to 17,561.37, KOSPI dropped 0.02 points to 2,566.84 and Shanghai Composite weakened 2.15 points or 0.07% to 2,928.65. However, Jakarta Composite gained 14.15 points or 0.2% to 7,133.68, Nikkei 225 surged 387.15 points or 1.17% to 33,146.13 and Straits Times rose 7.08 points or 0.23% to 3,120.31.