Bourses trade deep in red during late afternoon session

Mirroring weak global cues, Indian equity benchmarks traded deep in red during late afternoon session. Globally, traders were cautious about the outlook for global economic growth after some disappointing economic data from the U.S. Investors overlooked report that the Goods and Services Tax (GST) collections rose 10.3 per cent to over Rs 1.82 lakh crore in July 2024 as against Rs 1.65 lakh crore in the corresponding period last year, mainly driven by domestic transactions in goods and services. On the global front, all Asian markets were trading lower with Japanese markets leading regional losses. Recession worries gripped markets as weak U.S. manufacturing and labor market data highlighted emerging cracks in the world's largest economy. Heightened Middle East tensions and disappointing earnings updates from Amazon and Intel also dented demand for riskier assets. European markets were trading lower amid a broad global equity sell-off and as investors dumped semiconductor stocks following disappointing earnings from Intel.

The BSE Sensex is currently trading at 81077.17, down by 790.38 points or 0.97% after trading in a range of 80995.70 and 81345.60. There were 5 stocks advancing against 25 stocks declining on the index. 

The broader indices were trading in red; the BSE Mid cap index declined 0.79%, while Small cap index was down by 0.27%.

The only gaining sectoral index on the BSE was Healthcare rose by 0.68%, while Realty down by 3.34%, Auto down by 2.65%, Metal down by 2.52%, IT down by 1.83% and TECK was down by 1.56% were the top losing indices on BSE.

The top gainers on the Sensex were HDFC Bank up by 1.26%, Sun Pharma up by 1.18%, Kotak Mahindra Bank up by 0.83%, Asian Paints up by 0.72% and Nestle up by 0.60%. On the flip side, Maruti Suzuki down by 4.26%, Tata Motors down by 3.90%, JSW Steel down by 2.98%, Tata Steel down by 2.85% and Mahindra & Mahindra was down by 2.79% were the top losers.

Meanwhile, lauding Prime Minister Narendra Modi’s commitment to recognize the contribution of wealth creators in the private sector and businesses, Union Minister of Commerce & Industry, Piyush Goyal has said that a stable economy will push India to be among the top 3 world economies. 

He also noted that the Centre will ensure a better quality of life to the last man at the bottom of the pyramid in the next five years, adding that the government is also focused on efforts to replace the oil economy with electric mobility and making quality the fulcrum in manufacturing. 

As per the Commerce Minister, the steps undertaken by the Government such as self-sufficiency in defence, transparency and technology, stronger currency and macroeconomic fundamentals will spur India to become a developed nation. Besides, the Minister expressed hope that government efforts to boost semiconductor manufacturing, domestic shipping and a reduction in imports of oilseeds, rubber and pulses will help the rupee appreciate against the dollar.

While talking about the rapid growth of China, Goyal said that India is at the same sweet spot today as China was between 2000-2020 when they grew at 8% based on a stable economy and low inflation. He said ‘Our political and social problems will eventually reduce, our economy will grow faster and we can replicate China’s growth story’.

The CNX Nifty is currently trading at 24749.50, down by 261.40 points or 1.05% after trading in a range of 24723.70 and 24851.90. There were 9 stocks advancing against 41 stocks declining on the index. 

The top gainers on Nifty were Divi's Lab up by 1.40%, HDFC Bank up by 1.29%, Sun Pharma up by 1.22%, Dr. Reddy's Lab up by 1.10% and Kotak Mahindra Bank up by 0.75%. On the flip side, Eicher Motors down by 5.01%, Maruti Suzuki down by 4.30%, Tata Motors down by 3.98%, JSW Steel down by 3.04% and Wipro down by 3.03% were the top losers.

All Asian markets were trading lower; Nikkei 225 slipped 2216.63 points or 6.17% to 35,909.70, Taiwan Weighted lost 1004.01 points or 4.64% to 21,638.09, Hang Seng declined 359.45 points or 2.12% to 16,945.51, KOSPI dropped 101.49 points or 3.79% to 2,676.19, Straits Times fell 38.22 points or 1.12% to 3,381.62, Shanghai Composite weakened 27.05 points or 0.93% to 2,905.34 and Jakarta Composite was down by 17.85 points or 0.24% to 7,308.14.

European markets were trading lower; UK’s FTSE 100 decreased 26.23 points or 0.32% to 8,257.13, France’s CAC fell 29.64 points or 0.4% to 7,340.81 and Germany’s DAX was down by 197.1 points or 1.09% to 17,885.95.