Domestic indices extend losses in late morning deals

Domestic equity markets extended their losses in late morning deals on account selling by funds and retail investors. Selling in Infosys, Tata Steel, Tata Motors, Power Grid and HDFC bank dragged the market lower. Subdued cues from other Asian markets also weighed the domestic sentiments. Market participants seemed reluctant to buy stocks ahead of key U.S. inflation data due this week that might influence the Fed's rate trajectory.  Traders overlooked report that Moody’s Ratings raised India’s GDP growth forecast for FY24 to around 8 per cent from 6.6 per cent on the back of strong domestic consumption and capital expenditure.

On the global front, Asian markets were trading mostly lower following weak cues from US markets on Friday. Japan stocks led losses in the Asia-Pacific region after the country averted a technical recession, paving the way for its central bank to raise rates. Back home, in the stock specific developments, Tata Group companies were trading lower amid private report that Tata Sons is looking at ways to avoid going public next year. Tata Chemicals, Tata Investment Corporation, Tata Consumer Products, Tata Power Company, Indian Hotels Company, Tata Teleservices (Maharashtra), Tata Communications, Tata Motors, and Tata Steel were trading in red.  

The BSE Sensex is currently trading at 73794.03, down by 325.36 points or 0.44% after trading in a range of 73757.45 and 74187.35. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index was up by 0.21%, while Small cap index down by 1.52%.

The only gaining sectoral index on the BSE was Healthcare up by 0.49%,  while Telecom down by 1.07%, Metal down by 0.83%, Bankex down by 0.72%, IT down by 0.65% and Basic Materials down by 0.64% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 2.20%, Bharti Airtel up by 1.18%, Bajaj Finserv up by 1.09%, Sun Pharma up by 1.06% and Ultratech Cement up by 0.75%. On the flip side, Tata Steel down by 2.35%, Indusind Bank down by 1.73%, Power Grid down by 1.61%, Infosys down by 1.53% and Tata Motors down by 1.19% were the top losers.

Meanwhile, Union Minister Piyush Goyal has said that the Centre will pull all stops to ensure prices of essential food items from onion to tomatoes to pulses do not spike particularly during the elections. He asserted that the government would continue to take measures to ensure that there is no stress on the household budget of ‘our Nari-Shakti’. The Election Commission is expected to announce the poll schedule soon and the Lok Sabha elections are likely to be held in April-May.

The minister has highlighted that the government has spent in the last few years about Rs 28,000 crore to the price stabilisation fund to support the effort to fight against food inflation. He said ‘when the whole world was facing severe inflation, particularly food inflation, and never seen before levels, some countries of the developed world were showing 40-year high inflation, India was a bright spot in the subject of inflation’. 

During the UPA-era, Goyal said, the inflation was at high levels and food prices were going haywire. He said ‘if you look at the India story, even during the worst times, we were able to maintain our inflation at pretty much reasonable levels. We did not allow any product to see spikes beyond a point. If we saw any product going expensive, very often for reasons beyond our control, we acted immediately’.

The CNX Nifty is currently trading at 22415.60, down by 77.95 points or 0.35% after trading in a range of 22395.55 and 22526.60. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Nestle up by 2.48%, Grasim Industries up by 1.44%, Cipla up by 1.40%, BPCL up by 1.39% and Bajaj Finserv up by 1.31%. On the flip side, Tata Consumer down by 3.64%, Tata Steel down by 2.19%, Bajaj Auto down by 1.97%, Power Grid down by 1.57% and Indusind Bank down by 1.47% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 926.95 points or 2.34% to 38,761.99, Taiwan Weighted lost 59.24 points or 0.3% to 19,726.08, Straits Times fell 3.99 points or 0.13% to 3,143.10 and KOSPI dropped 20.34 points or 0.76% to 2,660.01. However, Hang Seng advanced 233.76 points or 1.43% to 16,587.15 and Shanghai Composite strengthened 3.36 points or 0.11% to 3,049.38.