Benchmarks extend losses in morning deals

Indian equity benchmarks extended losses in morning deals, dragged down by broad-based selling across sectors as global market jitters weighed on sentiment. Traders overlooked the finance ministry’s statement that Gross non-performing assets (NPAs) of public sector banks (PSBs) have declined to a decade low of 3.12 per cent at the end of September 2024 from a peak of 14.98 per cent in March 2018 on the back of measures like the 4Rs -- recognition, recapitalisation, resolution, and reform -- taken by the government. Traders also paid no heed towards the latest government data showed India’s retail inflation has declined to 5.48 per cent in November as compared to 6.21 per cent in October. This decline is primarily attributed to a drop in food prices, particularly vegetables which have helped reduce the overall inflation rate. This cooling of prices provides some relief to consumers who have been facing higher costs in recent months. Besides, India's industrial output, measures by the Index of Industrial Production (IIP) rose 3.5 per cent in October 2024, up from 3.1 per cent the previous month. 

On the global front, Asian markets are trading mostly in red as investors reined in appetite for risk ahead of next week’s Federal Reserve policy meeting. Back home, on the sectoral front, airports stocks remained in watch as ratings agency CRISIL said the cumulative capex (capital expenditure) of Indian airports is expected to grow 12 per cent at Rs 60,000 crore in the three years through FY27 from Rs 53,000 crore during 2022-2024, to add required infrastructure for about 65 million passengers per annum. 

The BSE Sensex is currently trading at 80367.88, down by 922.08 points or 1.13% after trading in a range of 80300.67 and 81224.08. There were 1 stock advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 1.32%, while Small cap index was down by 1.58%.

The top losing sectoral indices on the BSE were Metal down by 2.53%, Basic Materials down by 1.77%, PSU down by 1.73%, Utilities down by 1.73% and Power down by 1.60%, while there were no gaining sectoral indices on the BSE. 

The lone gainer on the Sensex was Bharti Airtel up by 1.13%. On the flip side, Tata Steel down by 3.15%, JSW Steel down by 2.79%, Indusind Bank down by 2.43%, Axis Bank down by 1.96% and NTPC down by 1.81% were the top losers. 

Meanwhile, Commerce and Industry Minister Piyush Goyal has expressed confidence that India's economic growth by end of this fiscal will be back on track despite global uncertainties. He said that this year also India will be the world's fastest growing economy.

He stated ‘We had an election in the first quarter and during the election, obviously policy making and decisions on next steps of growth or infrastructure spending does slow down and there is a lag effect. But from what the initial numbers for this quarter, the third quarter show, the festive spending, the rebound in rural growth, the way banks are now seeing traction back again, the way infrastructure spending has come back on track, I think by the time we close the year in March, we will be back on track.’

Besides, he said India's engagement with modern technologies and innovation will define the country's growth story. He added that the negative and false narratives of the opposition parties are not going to hold back the country's economic growth.

The latest government data showed India's economic growth slowed to near two-year low of 5.4 per cent in the July-September quarter of this fiscal due to poor performance of manufacturing and mining sectors, but the country continued to remain the fastest-growing large economy. The gross domestic product (GDP) had expanded by 8.1 per cent in the July-September quarter of the preceding fiscal.

The CNX Nifty is currently trading at 24264.95, down by 283.75 points or 1.16% after trading in a range of 24245.35 and 24520.80. There were 2 stocks advancing against 48 stocks declining on the index.

The few gainers on Nifty were Bharti Airtel up by 1.11% and Apollo Hospital up by 0.18%. On the flip side, Shriram Finance down by 3.50%, Tata Steel down by 3.27%, Hindalco down by 2.85%, JSW Steel down by 2.73% and Indusind Bank down by 2.51% were the top losers. 

Asian markets are trading mostly in red; Nikkei 225 slipped 382.31 points or 0.96% to 39,466.83, Taiwan Weighted lost 5.42 points or 0.02% to 23,041.38, Hang Seng declined 339.36 points or 1.69% to 20,057.69, Jakarta Composite plunged 27.09 points or 0.37% to 7,367.15 and Shanghai Composite weakened 51.63 points or 1.51% to 3,409.87.

On the flip side, KOSPI increased 16.24 points or 0.65% to 2,498.36 and Straits Times rose 7.56 points or 0.2% to 3,816.83.