Weak trade persists over Dalal Street

A weak trade continued over the Dalal Street in afternoon deals, with both Sensex and Nifty trading lower, amid signs that global central banks including the Federal Reserve and the European Central Bank will not rush to lower interest rates as previously anticipated. Traders were cautious as external affairs minister S Jaishankar said that Houthi attack in Red Sea will hit India’s energy and economy. He stressed that the issue should be speedily addressed.

The street paid no heed towards reports that the Ministry of Agriculture & Farmers Welfare, Government of India, is leveraging cutting-edge Artificial Intelligence (AI) technologies, in an effort towards the benefit of farmers and to increase overall productivity. As a pioneering force in the integration of AI, the Ministry is setting a precedent for leveraging advanced technologies to address the challenges faced by the farmers in India. 

On the global front, Asian markets were trading mixed, as Japan's industrial production declined for the first time in three months in November. The final data from the Ministry of Economy, Trade and Industry showed that industrial production slid 0.9 percent on a monthly basis, in contrast to the 1.3 percent rise a month ago. The rate came in line with the estimate published in December.

The BSE Sensex is currently trading at 71368.62, down by 132.14 points or 0.18% after trading in a range of 70665.50 and 71451.29. 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 0.02%, while Small cap index was up by 0.18%.

The top gaining sectoral indices on the BSE were Telecom up by 0.68%, Capital Goods up by 0.67%, Industrials up by 0.54%, Realty up by 0.53% and Healthcare up by 0.50%, while Utilities down by 1.49%, Consumer Durables down by 1.17%, Power down by 1.12%, FMCG down by 0.55% and Metal down by 0.53% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.22%, Axis Bank up by 1.96%, Sun Pharma up by 1.88%, ICICI Bank up by 1.29% and Tata Motors up by 1.17%. On the flip side, NTPC down by 3.17%, Asian Paints down by 2.03%, HDFC Bank down by 1.82%, Power Grid down by 1.46% and Titan down by 1.41% were the top losers.

Meanwhile, Ministry of Commerce & Industry has said that the Production Linked Incentive (PLI) Schemes witnessed over Rs 1.03 lakh crore of investment till November 2023, which has led to production/sales of Rs 8.61 lakh crore and employment generation (direct & indirect) of over 6.78 lakh. 

Commerce Ministry further noted that the PLI Schemes have witnessed exports surpassing Rs 3.20 lakh crore, with significant contributions from sectors such as Large-Scale Electronics Manufacturing, Pharmaceuticals, Food Processing, and Telecom & Networking products.

Besides, it said incentive amount of around Rs 4,415 crore disbursed under PLI Schemes for 8 Sectors viz. Large-Scale Electronics Manufacturing (LSEM), IT Hardware, Bulk Drugs, Medical Devices, Pharmaceuticals, Telecom & Networking Products, Food Processing and Drones & Drone Components.

The Ministry also highlighted that the PLI Schemes have transformed India’s exports basket from traditional commodities to high value-added products such as electronics & telecommunication goods, processed food products etc.

The CNX Nifty is currently trading at 21469.30, down by 102.65 points or 0.48% after trading in a range of 21285.55 and 21539.40. There were 18 stocks advancing against 32 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 1.84%, Sun Pharma up by 1.82%, Axis Bank up by 1.78%, Cipla up by 1.02% and Tata Motors up by 0.88%. On the flip side, LTIMindtree down by 10.11%, NTPC down by 3.48%, Asian Paints down by 2.36%, HDFC Bank down by 2.17% and Power Grid down by 1.94% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 106.99 points or 0.7% to 15,383.89, Taiwan Weighted gained 66 points or 0.38% to 17,227.79, Jakarta Composite gained 50.65 points or 0.7% to 7,251.29 and KOSPI gained 4.14 points or 0.17% to 2,440.04, while Straits Times fell 4.09 points or 0.13% to 3,138.13, Nikkei 225 slipped 11.58 points or 0.03% to 35,466.17 and Shanghai Composite slipped 16.87 points or 0.6% to 2,816.75.