Sensex, Nifty witness sharp correction in late noon deals

A sharp correction witnessed over the Dalal Street in late afternoon deals, with both Sensex and Nifty trading marginally higher, on the back of negative cues from European markets. Sentiments got hit, amid reports that India may see around $30 billion shaved off its total exports in the current fiscal year, as threats to cargo vessels in the Red Sea lead to a surge in container shipping rates and prompt exporters to hold back on shipments. On the sectoral front, auto stocks were in watch as the Federation of Automobile Dealers Associations (FADA) has said that aided by robust demand, automobile retail sales in India rose by 11 per cent in 2023 as compared to 2022. The overall domestic automobile retail sales stood at 2,38,67,990 units in the 2023 calendar year as compared to 2,14,92,324 units in 2022. 

On the global front, European markets were trading lower, as Germany's industrial production unexpectedly declined in November. The data from Destatis showed that industrial production slid 0.7 percent on a monthly basis in November, following a revised 0.3 percent drop in October. Output was forecast to grow 0.2 percent.

The BSE Sensex is currently trading at 71470.87, up by 115.65 points or 0.16% after trading in a range of 71456.96 and 72035.47. There were 19 stocks advancing against 11 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose by 0.01%, while Small cap index was up by 0.28%.

The top gaining sectoral indices on the BSE were Realty up by 1.46%, Power up by 1.16%, Capital Goods up by 0.95%, Auto up by 0.82% and Healthcare up by 0.78%, while Telecom down by 0.33%, Bankex down by 0.28% and FMCG down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Larsen & Toubro up by 1.76%, Sun Pharma up by 1.72%, Tata Steel up by 1.17%, Tata Motors up by 1.15% and Bharti Airtel up by 1.08%. On the flip side, Nestle down by 0.95%, HDFC Bank down by 0.67%, Asian Paints down by 0.59%, Bajaj Finserv down by 0.51% and Ultratech Cement down by 0.39% were the top losers.

Meanwhile, highlighting the 150% growth in processed food exports over the last nine years, Union Minister of Commerce & Industry, Piyush Goyal has said that India’s agricultural exports stood at an aggregate of about $53 billion. He emphasized the need for large-scale food processing, product branding, and export focus to provide better value to farmers, generate employment, and enhance the country's earnings.

The Minister praised India's diverse food industry, emphasizing its potential to captivate global markets. He also lauded the success of food security initiatives of the government such as the 'Pradhan Mantri Garib Kalyan Anna Yojana', providing free food grains to 81 Crore people and ensuring zero starvation deaths in the country. 

Besides, Goyal highlighted India's economic strengths as the fastest-growing large economy, attributing the success to solid macroeconomic foundations and a youthful demographic dividend. He credited social media and global influencers for promoting Indian culinary delights, leading to a surge in the popularity of diverse regional cuisines. Also Goyal highlighted the richness of Indian cuisine, noting its distinctive flavors, spices, and aromas.

The CNX Nifty is currently trading at 21559.35, up by 46.35 points or 0.22% after trading in a range of 21555.75 and 21724.45. There were 31 stocks advancing against 19 stocks declining on the index.

The top gainers on Nifty were SBI Life Insurance up by 2.33%, Hero MotoCorp up by 2.33%, Adani Ports & SEZ up by 2.20%, Apollo Hospital up by 1.98% and Larsen & Toubro up by 1.75%. On the flip side, Nestle down by 1.00%, HDFC Life Insurance down by 0.81%, Britannia down by 0.78%, HDFC Bank down by 0.65% and ONGC down by 0.64% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 0.26 points or 0% to 7,693.93, France’s CAC decreased 23.6 points or 0.32% to 7,426.64 and Germany’s DAX lost 46.74 points or 0.28% to 16,669.73.

Asian markets were trading mixed; Jakarta Composite plunged 95.6 points or 1.33% to 7,187.98, Taiwan Weighted lost 37.17 points or 0.21% to 17,535.49, Hang Seng declined 34.43 points or 0.21% to 16,190.02 and KOSPI dropped 6.58 points or 0.26% to 2,561.24, while Shanghai Composite strengthened 5.71 points or 0.2% to 2,893.25, Straits Times rose 10.19 points or 0.32% to 3,197.21 and Nikkei 225 surged 385.76 points or 1.14% to 33,763.18.