Domestic indices continue to trade in red in late morning deals

Domestic equity indices continued to trade in deep red in late morning deals as market participants indulged in reducing their positions. Hectic selling in Tech Mahindra, Axis Bank, Sun Pharma, HCL and ITC dragged the markets to trade deeply in lower. Sentiments were muted as U.S. Treasury yields climbed amid two significant pieces of economic data are on the slate this week: a preliminary fourth-quarter gross domestic product growth figure is due on Thursday, followed by the Commerce Department’s closely watched personal consumption expenditures price index for December on Friday.  Traders ignored CareEdge Ratings’ report that the Indian Rupee is expected to appreciate to around 82 against the Dollar in the calendar year 2024 on the back of a softening dollar, robust Foreign Portfolio Investment (FPI) inflows, and a comfortable current account deficit. 

On the global front, Asian markets were trading mostly in green after the People’s Bank of China had said it would cut reserve requirements for the country’s lenders. On the sectoral front, traders were seen pilling up position in Utilities, Realty, Power, PSU and Industrials, while selling was witnessed in IT, TECK, Bankex, Consumer Durables and Healthcare. 

The BSE Sensex is currently trading at 70454.52, down by 605.79 points or 0.85% after trading in a range of 70324.14 and 71049.46. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was down by 0.43%, while Small cap index up by 0.38%.

The top gaining sectoral indices on the BSE were Utilities up by 0.97%, Realty up by 0.75%, Power up by 0.68%, PSU up by 0.31% and Industrials up by 0.25%, while IT down by 1.37%, TECK down by 1.28%, Bankex down by 1.17%, Consumer Durables down by 1.00% and Healthcare down by 0.96% were the top losing indices on BSE.

The top gainers on the Sensex were NTPC up by 1.63%, Hindustan Unilever up by 0.63%, Indusind Bank up by 0.43%, Bajaj Finance up by 0.19% and Bajaj Finserv up by 0.15%. On the flip side, Tech Mahindra down by 5.71%, Axis Bank down by 2.51%, Sun Pharma down by 2.06%, HCL down by 1.69% and ITC down by 1.65% were the top losers.

Meanwhile, the Union Power and New & Renewable Energy Minister R K Singh has assured stakeholders that additional funds will be allocated for decarbonisation of the steel sector under National Green Hydrogen Mission, if required. He also said that the funds available under the mission should be used to develop technology for integration of hydrogen in steel making. He said some manufacturers have already begun to experiment using green hydrogen in the steel sector. The idea of this meeting is to decide the avenues in which the funds can be channelled to accelerate this transition, through a transparent selection process which also addresses the technology gaps which need to be addressed.

The minister also assured the stakeholders that if need arises, additional funds can be allocated, besides the Rs 455 crore already allocated for the steel sector under the National Green Hydrogen Mission. The industry representatives shared their concerns regarding the challenges faced by them for conducting trials. The possibility of executing projects by a consortium was also discussed. The minister said that all efforts should be made to zero in on the right technology and pathways for decarbonisation of the steel sector.

He underlined the government's thrust on energy transition and how this is important for the iron and steel sector as well. He stressed that use of green hydrogen in steel making can help decarbonise the sector. He also stated that in the wake of trade barriers being put up by developed countries, energy transition is important for competitiveness of the sector as well.

The CNX Nifty is currently trading at 21297.70, down by 156.25 points or 0.73% after trading in a range of 21247.05 and 21459.00. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Bajaj Auto up by 3.83%, NTPC up by 1.80%, Coal India up by 1.35%, BPCL up by 0.87% and Hindustan Unilever up by 0.79%. On the flip side, Tech Mahindra down by 5.64%, Adani Enterprises down by 2.87%, Axis Bank down by 2.58%, SBI Life down by 2.54% and Cipla down by 2.00% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 296.17 points or 1.83% to 16,196.04, Nikkei 225 surged 41.48 points or 0.11% to 36,267.96, Taiwan Weighted added 113.66 points or 0.63% to 17,989.49, Shanghai Composite strengthened 69.55 points or 2.41% to 2,890.32 and Jakarta Composite gained 18.08 points or 0.25% to 7,245.90. However, Straits Times fell 7.56 points or 0.24% to 3,145.77 and KOSPI dropped 1.37 points or 0.06% to 2,468.32.