Domestic indices magnify losses in late morning deals

Domestic equity indices magnified their losses and were trading with cut of over one percent in late morning deals with frontline gauges declining below their crucial 25,950 (Nifty) and 84,700 (Sensex) levels. Hectic selling in Mahindra & Mahindra, Reliance Industries, ICICI Bank, Tech Mahindra and Indusind Bank dragged the markets to trade near day’s low points. Sentiments were weak amid strife in the Middle East. On Sunday, Israel said it bombed Houthi targets in Yemen and mounted further airstrikes in Lebanon, expanding its confrontation with Iran's allies in the region two days after killing the Hezbollah leader Sayyed Hassan Nasrallah. On the BSE sectoral front, traders were seen pilling up positions in Metal and Basic Materials, while selling was witnessed in Realty, Auto, Bankex, Telecom and Energy. 

On the global front, Asian markets were trading mixed as investors assessed key economic data from china. China’s official purchasing managers’ index reading for September came in at 49.8, better than the 49.5 expected by street. However, this marked a fifth straight month of contraction for the manufacturing sector in China. The Caixin PMI survey, which is a private survey compiled by S&P Global, reported that the manufacturing PMI fell to 49.3 from 50.4 in September, lower than the 50.5 expected from street. Back home, in stock specific development, Lupin dropped after the United States Food and Drug Administration (USFDA) issued 3 observations for its Pithampur Unit-1, based in Madhya Pradesh.   

The BSE Sensex is currently trading at 84626.16, down by 945.69 points or 1.11% after trading in a range of 84616.62 and 85359.65. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.43%, while Small cap index down by 0.17%.

The few gaining sectoral indices on the BSE were Metal up by 1.29% and Basic Materials up by 0.77%, while Realty down by 2.02%, Auto down by 1.62%, Bankex down by 1.22%, Telecom down by 1.21% and Energy down by 1.04% were the top losing indices on BSE.

The top gainers on the Sensex were JSW Steel up by 2.22%, Tata Steel up by 1.86%, Asian Paints up by 1.27%, HCL up by 0.41% and Adani Ports up by 0.35%. On the flip side, Mahindra & Mahindra down by 2.56%, Reliance Industries down by 2.26%, ICICI Bank down by 1.97%, Tech Mahindra down by 1.73% and Indusind Bank down by 1.48% were the top losers.

Meanwhile, Union Minister Giriraj Singh has said that the government has prepared a road map for creating 4.5-6 crore jobs in the textile sector by 2030. He also asserted that efforts are being made to take the sector's market size to $350 billion from around $165 billion at present. He noted that the seven PM-MITRA integrated mega textile parks approved earlier will have investment to the tune of Rs 70,000 crore when fully functional, thereby creating 21 lakh jobs. 

The minister said that there are plans to take the size of India's textile sector to $350 billion. He said ‘to reach a size of $350 billion in the coming days, we need man-made fabric, whether it be synthetic, viscose or natural fibre, we are preparing for everything.’ He added that over 350 brands globally procure clothes from India and one should look not just the export figures but domestic numbers also. 

Singh said notably, India's textiles exports declined for the second year in a row in 2023-24. The government has set an ambitious target to achieve $100 billion export for textile products by 2030. Exports of textiles and apparel from India during FY24 fell 3.24 per cent at $34.4 billion, as compared to $35.5 billion a year ago. He stated that efforts are underway to promote Make in India for the textiles sector, adding that neither Bangladesh nor Vietnam poses a challenge to the domestic industry.

The CNX Nifty is currently trading at 25915.60, down by 263.35 points or 1.01% after trading in a range of 25912.60 and 26134.70. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were JSW Steel up by 2.24%, Tata Steel up by 1.89%, Hindalco up by 1.75%, Adani Enterprises up by 1.36% and Asian Paints up by 1.24%. On the flip side, Hero MotoCorp down by 3.83%, Mahindra & Mahindra down by 2.82%, Bharat Electronics down by 2.64%, Reliance Industries down by 2.38% and Bajaj Auto down by 2.34% were the top losers.

Asian markets were trading mixed; Hang Seng advanced 670.95 points or 3.25% to 21,303.25, Shanghai Composite strengthened 206.79 points or 6.7% to 3,294.32 and Straits Times rose 12.03 points or 0.34% to 3,585.39. However, Jakarta Composite plunged 104.28 points or 1.37% to 7,592.64, KOSPI dropped 36.69 points or 1.38% to 2,613.09, Nikkei 225 slipped 1983.11 points or 4.98% to 37,846.45 and Taiwan Weighted lost 437.95 points or 1.92% to 22,384.84.