Bears hold grip on Indian markets

Bears were holding a tight grip on Indian equity markets in early afternoon deals, amid heavy selling at  Utilities, Consumer Durables and PSU counters, as a cautious undertone prevailed due to investor anxiety over the impending U.S. election and heightened tensions in the Middle East. There was some anxiety, amid a private report stating that high interest rates pose a significant challenge for Indian exporters, with three-fourths of them borrowing at over 12 percent, even after providing collaterals. Pharma stocks were in watch, as credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the Indian pharmaceutical market (IPM) continued to deliver mid-single digit growth for the last three consecutive months at 5.3% in September 2024. The report noted that this is because of price growth (5.3% yoy) and new launches (2.4% yoy). However, it said the volume growth (negative 2.4% yoy) remained weak. 

On the global front, Asian markets were trading mostly in green, after inflation in Japan's capital Tokyo fell below 2 percent for the first time since May. The data from the Ministry of Internal Affairs and Communications showed that excluding fresh food, consumer price inflation weakened to 1.8 percent in October from 2.0 percent in September. Inflation was seen at 1.7 percent. The rate fell below 2.0 percent for the first time in five months. Likewise, overall consumer price inflation slowed to 1.8 percent from 2.1 percent a month ago.

The BSE Sensex is currently trading at 79300.21, down by 764.95 points or 0.96% after trading in a range of 79201.42 and 80253.19. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 1.60%, while Small cap index was down by 2.37%.

The only gaining sectoral index on the BSE was FMCG up by 0.60%, while Utilities down by 3.08%, Consumer Durables down by 3.06%, PSU down by 2.87%, Power down by 2.80% and Capital Goods down by 2.74% were the top losing indices on BSE.

The top gainers on the Sensex were ITC up by 2.34%, Hindustan Unilever up by 1.17%, Sun Pharma up by 0.77%, Nestle up by 0.71% and Axis Bank up by 0.67%. On the flip side, Indusind Bank down by 19.41%, Mahindra & Mahindra down by 4.92%, NTPC down by 4.41%, Larsen & Toubro down by 3.28% and Adani Ports & SEZ down by 2.89% were the top losers.

Meanwhile, Finance Minister Nirmala Sitharaman has called jobs creation the most pressing global issue, given the continued economic headwinds and rapid technological changes that are reshaping the skills needed for youth to enter the job market. 

The minister said the World Bank has previously conducted several studies on sectoral trends and their potential impact on employment, covering areas like ‘green jobs,' jobs after artificial intelligence, and shifts due to changing demographics. However, she stressed that the need for the hour is a more comprehensive, multi-sectoral analysis -- one that examines how emerging trends interact and influence both job loss and job creation. This analysis should also consider factors like geopolitical fragmentation and its effects on sectors such as food production, exports, and related employment. 

In addition to the traditional manufacturing-led development pathway, Sitharaman highlighted the need to explore alternative growth strategies and the types of jobs they will generate. She urged the World Bank to collaborate with countries in identifying high-priority skilling sectors based on data, analysis, and knowledge work, with a focus on generating employment, skill matching, and labour retention. She also underscored the importance of an outcome-oriented roadmap with a clear implementation strategy to effectively put these plans into action. 

The CNX Nifty is currently trading at 24119.35, down by 280.05 points or 1.15% after trading in a range of 24093.95 and 24440.25. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were ITC up by 2.35%, Hindustan Unilever up by 1.10%, Sun Pharma up by 0.76%, Axis Bank up by 0.76% and Nestle up by 0.75%. On the flip side, Indusind Bank down by 19.43%, Mahindra & Mahindra down by 4.94%, Adani Enterprises down by 4.61%, NTPC down by 4.44% and Shriram Finance down by 4.34% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 106.29 points or 0.52% to 20,595.91, Shanghai Composite strengthened 16.12 points or 0.49% to 3,296.38, Taiwan Weighted added 155.93 points or 0.67% to 23,348.45 and KOSPI increased 2.24 points or 0.09% to 2,583.27, while Jakarta Composite plunged 10.51 points or 0.14% to 7,706.04, Straits Times fell 17.38 points or 0.48% to 3,587.57 and Nikkei 225 slipped 229.37 points or 0.6% to 37,913.92.