Markets add losses in late afternoon session

Indian equity markets added more losses in late afternoon session following negative cues from European markets. Traders were cautious ahead of CPI inflation data. Investors ignored Commerce and Industry Minister Piyush Goyal’s statement that the many developed and developing countries including Bangladesh, Sri Lanka, and nations of the Gulf region are keen to start trade in rupee with India as it would help cut transaction costs for businesses. Sector wise, steel sector remained in focus as Icra in its latest report has said that India's domestic steel consumption growth is likely to come down to 7-8 per cent in the next financial year (FY25) against an estimated 12-13 per cent this fiscal (FY24) due to moderate government spending during the election period. On the global front, Asian markets were traded mostly in red after the latest U.S. jobs report sent mixed signals about the state of the world's largest economy. European markets were trading lower following declines in the Asia-Pacific region overnight. 

The BSE Sensex is currently trading at 73616.12, down by 503.27 points or 0.68% after trading in a range of 73564.54 and 74187.35. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.21%, while Small cap index was down by 1.68%.

The only gaining sectoral indices on the BSE were Healthcare was up by 0.43%, while Telecom down by 1.88%, Metal down by 1.23%, Bankex down by 1.19%, Utilities down by 1.09% and PSU was down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were Nestle up by 2.14%, Bajaj Finserv up by 1.49%, HCL Tech up by 0.82%, Bajaj Finance up by 0.62% and TCS up by 0.52%. On the flip side, Power Grid down by 2.61%, Tata Steel down by 2.48%, SBI down by 2.14%, HDFC Bank down by 1.55% and Indusind Bank down by 1.43% were the top losers.

Meanwhile, with an aim to enhance India’s export competitiveness in international markets, the Government of India has extended Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme support to additional export sectors i.e. Advance Authorisation (AA) holders, Export Oriented Units (EOU) and Special Economic Zones (SEZ) export units. 

This decision comes in recognition of the significant contribution these sectors make to India’s Exports, constituting approximately 25% of the country’s exports. Amidst global economic uncertainties and supply chain disruptions, extending RoDTEP to the uncovered sectors such as AA, EOU, and SEZ units will help the exporting community in handling the international headwinds.

The RoDTEP Scheme is a key initiative by the Government of India aimed at refunding various embedded taxes and duties on exported products. By providing support to crucial export sectors, the government aims to not only enhance their competitiveness but also create employment opportunities and contribute to overall economic growth, aligning with the vision of building an Aatmanirbhar Bharat.

The CNX Nifty is currently trading at 22364.40, down by 129.15 points or 0.57% after trading in a range of 22341.65 and 22526.60. There were 22 stocks advancing against 28 stocks declining on the index.

The top gainers on Nifty were Apollo Hospital up by 2.17%, Nestle up by 2.09%, Cipla up by 1.68%, Bajaj Finserv up by 1.53% and Dr. Reddy's Lab up by 1.36%. On the flip side, Tata Consumer down by 3.23%, Power Grid down by 2.67%, Tata Steel down by 2.48%, Bajaj Auto down by 2.19% and SBI down by 2.13% were the top losers.

Asian markets were traded mostly in red; Nikkei 225 slipped 868.45 points or 2.24% to 38,820.49, Taiwan Weighted lost 59.24 points or 0.3% to 19,726.08, KOSPI dropped 20.51 points or 0.77% to 2,659.84 and Straits Times was down by 10.17 points or 0.32% to 3,136.92. On the flip side, Shanghai Composite strengthened 22.44 points or 0.73% to 3,068.46 and Hang Seng was up by 234.18 points or 1.41% to 16,587.57.

European markets were trading lower; UK’s FTSE 100 decreased 14.92 points or 0.19% to 7,644.82, France’s CAC fell 35.27 points or 0.44% to 7,992.74 and Germany’s DAX was down by 146.36 points or 0.82% to 17,668.15.