Domestic indices remain under pressure in late morning deals

Domestic equity indices remained in red and were trading with cut of over 0.70% each as market participants indulged in reducing their positions. Hectic selling in Mahindra & Mahindra, NTPC, Tata Motors, SBI and Axis Bank dragged the markets lower. Meanwhile, broader indices were trading deeply in red with BSE Mid cap index and BSE Mid cap index dropping in the range of 1.05-1.55%. Broader market indices continued to languish as MFs' stress test results continued to trickle in. Weak cues from the global markets weighed on the domestic sentiments. Sentiments were weak as U.S. Treasury yields climbed after hotter-than-expected wholesale inflation report worried traders about its potential impact on Federal Reserve policy going forward. On the sectoral front, all the sectoral indices on the BSE were trading in red led by Oil & Gas, PSU, Energy, Utilities and Auto.

On the Global front, Asian markets were trading in red following weak cues from the US markets overnight. Back home, in the stock specific development, Biocon slipped as the company’s unit Biocon Biologics will sell its Indian branded formulations businesses to Eris Lifesciences in a deal worth Rs 1,242 crore ($150 million). Both organisations have entered into a long- term collaboration to expand patient access in India.   

The BSE Sensex is currently trading at 72570.74, down by 526.54 points or 0.72% after trading in a range of 72488.78 and 72998.07. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 1.55%, while Small cap index down by 1.06%.

The top losing sectoral indices on the BSE were Oil & Gas down by 3.98%, PSU down by 3.67%, Energy down by 3.15%, Utilities down by 2.19% and Auto down by 2.04%, while there were no gainers.  

The top gainers on the Sensex were Bajaj Finance up by 2.01%, ITC up by 1.21%, Bharti Airtel up by 0.90% and Bajaj Finserv up by 0.21%. On the flip side, NTPC down by 4.17%, Mahindra & Mahindra down by 2.72%, Tata Motors down by 2.54%, Axis Bank down by 1.86% and SBI down by 1.84% were the top losers.

Meanwhile, Union Minister of Railways Ashwini Vaishnaw has said that sixty to seventy years after being an importer of forged wheels used in the railways, India is all set to become an exporter of the train component. He said that construction activities for setting up a plant to produce forged wheels for the railways has commenced in Tamil Nadu.

The minister said ‘the wheels that we use in the wagons undergo a casting process. The factory to produce the forged wheels is now being set up. Construction has started’. He also said the plant will have the capacity to produce 2.5 lakh wheels, of which 80,000 will be used in India and the remaining 1.70 lakh will be exported.

Similarly, Vaishnaw said the Integral Coach Factory here would also develop standard gauge Vande Bharat trains. He said 'standard gauge rakes are used all over the world. So, when we are thinking of exporting Vande Bharat trains few years down the line, we must have the development of standard gauge Vande Bharat trains today’. He added that designing and testing of standard gauge Vande Bharat trains need to be done, after which national and international approvals need to be obtained before they can be formally launched. 

The CNX Nifty is currently trading at 21956.30, down by 190.35 points or 0.86% after trading in a range of 21934.10 and 22120.90. There were 7 stocks advancing against 43 stocks declining on the index.

The top gainers on Nifty were Bajaj Finance up by 1.91%, UPL up by 1.44%, ITC up by 1.10%, Britannia up by 1.10% and Bharti Airtel up by 0.90%. On the flip side, BPCL down by 6.28%, Coal India down by 5.12%, NTPC down by 4.07%, ONGC down by 3.89% and Hero MotoCorp down by 3.13% were the top losers.

All Asian markets are trading lower; Hang Seng declined 403.75 points or 2.44% to 16,557.91, Nikkei 225 slipped 129.07 points or 0.33% to 38,678.31, Taiwan Weighted lost 168.1 points or 0.85% to 19,769.82, Straits Times fell 7.59 points or 0.24% to 3,178.81, KOSPI dropped 42.90 points or 1.6% to 2,675.86, Shanghai Composite weakened 8.59 points or 0.28% to 3,029.64 and Jakarta Composite plunged 68.65 points or 0.93% to 7,364.67.