Domestic markets trade marginally lower in late morning deals

Domestic equity markets were trading marginally in red in late morning deals on account of selling in NTPC, Mahindra & Mahindra, Power Grid and JSW Steel companies’ stocks. The selloff in the broader market was quite deep, with both BSE midcap and BSE smallcap indices falling over 2.45% each. Lackluster cues from global peers weighed on the domestic sentiments. Traders were cautious as crude oil prices gained on concerns of a broadening conflict in the Middle East after Israel rejected a ceasefire offer from Hamas. However, losses were limited as private report said that India's retail inflation likely eased to a three-month low of 5.09 per cent in January on slowing food price rises and favourable base effects.

On the global front, Asian markets were trading mostly in red as most Asia-Pacific markets were either fully or partially closed for Lunar New Year holidays. Back home, most of the sectoral indices on BSE were trading in red, with only exception of Banking counter. Stocks from PSU, Oil & Gas, Metal, Energy and Telecom counters were the prominent gainers. 

The BSE Sensex is currently trading at 71292.09, down by 136.34 points or 0.19% after trading in a range of 71200.31 and 71640.98. 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 2.49%, while Small cap index down by 2.76%.

The only gaining sectoral indices on the BSE was Bankex up by 0.43%, while PSU down by 4.30%, Oil & Gas down by 4.00%, Metal down by 3.61%, Energy down by 3.28% and Telecom down by 3.19% were the top losing indices on BSE.

The top gainers on the Sensex were ICICI Bank up by 1.50%, ITC up by 1.18%, Sun Pharma up by 1.04%, Bajaj Finance up by 0.89% and SBI up by 0.79%. On the flip side, NTPC down by 3.16%, Tata Steel down by 2.71%, Mahindra & Mahindra down by 2.59%, Power Grid down by 2.05% and JSW Steel down by 1.85% were the top losers.

Meanwhile, Power Minister R. K. Singh has said that total outstanding dues of power distribution companies (Discoms) have come down to around Rs 50,000 crore as on January 31, 2024 following the implementation of Electricity (LPS and Related Matters) Rules, 2022. Total outstanding dues of distribution companies (discoms) were at Rs 1,39,947 crore in June 2022.  With the implementation of the rules, a remarkable improvement has been seen in recovery of outstanding dues. 

The minister said distribution companies are also paying their current dues in time to avoid regulation of open access under the rule. This rule has not only ensured that the outstanding dues are liquidated but has also ensured that the current dues are paid on time. It may be seen that the rule has played a vital role towards ensuring the financial discipline in discoms. This would facilitate investment in the sector necessary to sustain 24x7 electricity supply to consumers

He further said 19 coal-based thermal power plants of total capacity 2.3 GW retired in last three years. While, 28.8 GW power capacity added during March 2022 to December 2023 and the total installed electricity capacity of the nation stands at 428 GW.

The CNX Nifty is currently trading at 21673.60, down by 44.35 points or 0.20% after trading in a range of 21629.90 and 21780.50. There were 19 stocks advancing against 31 stocks declining on the index.

The top gainers on Nifty were ICICI Bank up by 1.50%, ITC up by 1.41%, Sun Pharma up by 1.22%, Bajaj Finance up by 1.08% and Britannia up by 1.02%. On the flip side, ONGC down by 4.41%, Coal India down by 4.28%, Hindalco down by 3.64%, BPCL down by 3.03% and NTPC down by 2.99% were the top losers.

Asian markets are trading mostly in red; Hang Seng declined 131.49 points or 0.84% to 15,746.58, Straits Times fell 4.61 points or 0.15% to 3,138.30. However, Nikkei 225 surged 78.88 points or 0.21% to 36,942.16.