Domestic indices remain in red in early noon session

Domestic equity markets pared most of their losses in early noon session on account of buying in Tech Mahindra, Axis Bank, Sun Pharma and Larsen & Toubro companies' stocks. However, markets continued to trade in red amid weak cues from global markets. Sentiments were weak after Treasury yields in U.S. rose as investors focused on stronger-than-expected December retail sales and the latest remarks from Federal Reserve members. Further, foreign fund outflows also dented sentiments. Provisional data from the NSE showed that foreign institutional investors (FIIs) sold shares worth Rs 10,578.13 crore on January 17. 

On the global front, Asian markets were trading mixed following negative cues from the US markets overnight. Back home, traders were seen pilling up position in Telecom, Capital Goods, Healthcare, Industrials and Bankex, while selling was witnessed in Utilities, Consumer Durables, Power, Metal and Basic Materials. 

The BSE Sensex is currently trading at 71259.35, down by 241.41 points or 0.34% after trading in a range of 70665.50 and 71302.68. 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 0.34%, while Small cap index down by 0.14%.

The top gaining sectoral indices on the BSE were Telecom up by 0.56%, Capital Goods up by 0.29%, Healthcare up by 0.26%, Industrials up by 0.17% and Bankex up by 0.06%, while Utilities down by 1.65%, Consumer Durables down by 1.34%, Power down by 1.32%, Metal down by 0.91% and Basic Materials down by 0.63% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.82%, Axis Bank up by 1.99%, Sun Pharma up by 1.69%, Larsen & Toubro up by 0.91% and SBI up by 0.86%. On the flip side, NTPC down by 3.01%, Asian Paints down by 2.42%, Indusind Bank down by 2.30%, HDFC Bank down by 2.15% and Power Grid down by 1.92% were the top losers.

Meanwhile, in line with fall in global prices and lower imports of urea, chemicals and fertilizers minister Mansukh Mandaviya has said that the government's fertiliser subsidy bill is likely to decline 30-34 per cent to Rs 1.7-1.8 lakh crore this fiscal. Talking about any adverse impact on imports due to problems in Red sea, the minister asserted ‘there is no shortage of fertilisers in the country’.

Mandaviya highlighted that the urea imports are estimated at 40-50 lakh tonnes this fiscal, lower from around 75 lakh tonnes imported in the previous year, helped by higher domestic production and increased use of nano liquid urea. He added ‘Ministry of External Affairs is making necessary interventions and our Navy is giving protection to Indian cargo vessels’.

At present, the country has stocks of 70 lakh tonnes of urea, 20 lakh tonnes of DAP, 10 lakh tonnes of MoP (Muriate of Potash), 40 lakh tonnes of NPK and 20 lakh tonnes of SSP (single super phosphate). Mandaviya highlighted that the government has taken several steps since 2014 to boost domestic production of fertilisers and reduce import dependence.

The CNX Nifty is currently trading at 21488.05, down by 83.90 points or 0.39% after trading in a range of 21285.55 and 21498.35. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 3.00%, Axis Bank up by 2.10%, Sun Pharma up by 1.76%, Apollo Hospital up by 1.20% and Wipro up by 1.15%. On the flip side, LTIMindtree down by 10.31%, NTPC down by 3.02%, Asian Paints down by 2.53%, HDFC Bank down by 2.21% and Indusind Bank down by 2.15% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 81.54 points or 0.53% to 15,358.44, Taiwan Weighted added 66 points or 0.38% to 17,227.79, KOSPI increased 12.53 points or 0.51% to 2,448.43 and Jakarta Composite gained 47 points or 0.65% to 7,247.64. However, Straits Times fell 5 points or 0.16% to 3,137.22, Shanghai Composite weakened 41.06 points or 1.47% to 2,792.56 and Nikkei 225 slipped 11.58 points or 0.03% to 35,466.17.