Domestic indices trade lower with cut of over 0.75%

Domestic equity markets traded lower with cut of over 0.75% in late morning deals on account of selling by funds and retail investors. Hectic selling in private banking stocks namely Axis Bank, ICICI Bank, weighted on the markets. Selling was prevailed in the markets after the Reserve Bank of India (RBI) Governor-led Monetary Policy Committee (MPC) kept the repo rate unchanged at 6.5 per cent in its February 2024 review, in line with the expectations of street. Further, foreign fund outflows dented sentiments. Foreign institutional investors (FIIs) net sold shares worth Rs 1,691.02 crore on February 7, provisional data from the NSE showed.

On the global front, Asian markets were trading mixed despite positive cues from the US markets overnight. Back home, on the BSE sectoral front, traders were seen pilling up position in PSU, Utilities, Power, Telecom and Oil & Gas, while selling was witnessed in FMCG, Bankex, Basic Materials, Auto and Realty. 

The BSE Sensex is currently trading at 71529.35, down by 622.65 points or 0.86% after trading in a range of 71405.38 and 72473.42. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.43%, while Small cap index down by 0.25%.

The top gaining sectoral indices on the BSE were PSU up by 1.39%, Utilities up by 0.72%, Power up by 0.45%, Telecom up by 0.20% and Oil & Gas up by 0.14%, while FMCG down by 1.20%, Bankex down by 0.96%, Basic Materials down by 0.85%, Auto down by 0.77% and Realty down by 0.53% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 4.59%, SBI up by 3.75%, TCS up by 0.43% and HCL up by 0.26%. On the flip side, Axis Bank down by 2.62%, ICICI Bank down by 2.38%, Nestle down by 2.29%, ITC down by 1.93% and Maruti Suzuki down by 1.93% were the top losers.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that the government has set up a task force under the Department of Commerce to identify, categorise and develop tailored strategies for the resolution of non-tariff barriers. He said such barriers include prior registration requirements in the exporting country, cumbersome testing and certification requirements and unreasonable domestic standards/rules. Different countries enforce various regulatory measures to ensure the safety and quality of the products placed in their territory. These measures apply equally to domestic manufacturers and importers.

However, the minister said such measures may sometimes act as trade barriers due to various reasons like gaps in the regulatory frameworks and quality compliance requirements of the trade partners, lack of transparency, arbitrariness or differing interpretation of the rules, and improper implementation.

He further said the resolution of trade barriers, including ensuring increased and effective market access, is a continuous process and endeavour. He noted that India also engages in regulatory cooperation to help ensure that global rules governing the regulatory structures are favourable and consistent.

The CNX Nifty is currently trading at 21764.40, down by 166.10 points or 0.76% after trading in a range of 21709.55 and 22011.05. There were 8 stocks advancing against 42 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 4.83%, SBI up by 4.11%, BPCL up by 2.87%, Hindalco up by 1.36% and TCS up by 0.52%. On the flip side, Britannia Inds down by 2.98%, Tata Consumer down by 2.60%, Axis Bank down by 2.55%, Nestle down by 2.26% and ICICI Bank down by 2.23% were the top losers.

Asian markets were trading mixed; Hang Seng declined 201.43 points or 1.25% to 15,880.46, Straits Times fell 9.48 points or 0.3% to 3,146.67 and Jakarta Composite plunged 12.26 points or 0.17% to 7,235.15. However, Nikkei 225 surged 776.91 points or 2.15% to 36,896.83, KOSPI increased 3.91 points or 0.15% to 2,613.49 and Shanghai Composite strengthened 19 points or 0.67% to 2,848.70.