Benchmarks extend losses in morning deals

Indian equity benchmarks extended losses in morning deals, amid cautious investors approach ahead of the US Fed interest rate decision and selling in blue-chip stocks like Bajaj Finserv, Bharti Airtel and Power Grid Corporation. Traders remained cautious as exchange data showed Foreign Institutional Investors (FIIs) offloaded equities worth Rs 278.70 crore on Monday. Some concern also came as the commerce ministry’s data showed that India's merchandise exports dipped by 4.85 per cent to $32.11 billion in November 2024 against $33.75 billion a year ago. India's merchandise exports had increased by 17.25 per cent to $39.2 billion in October this year. Imports increased by 27 per cent to $69.95 billion in November compared to $55.06 billion in the year-ago month. The trade deficit, or the gap between imports and exports, widened to $37.84 Billion during the month under review. Traders overlooked CRISIL’s report stated that India’s gross domestic product (GDP) growth is likely to align with the long-term trend of 6.5-7 per cent as technical factors that caused fluctuations begin to normalise. On the global front, Asian markets are trading mostly in red as traders braced for a slate of central banks meetings this week that is likely to see the US Federal Reserve deliver a rate cut and the Bank of Japan stand pat for now.

The BSE Sensex is currently trading at 80942.65, down by 805.92 points or 0.99% after trading in a range of 80886.93 and 81613.64. There was 1 stock advancing against 29 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.07%, while Small cap index down by 0.09%.

The lone gaining sectoral index on the BSE was Realty up by 1.37%, while Energy down by 1.06%, Oil & Gas down by 1.02%, Bankex down by 0.96%, Telecom down by 0.92% and TECK down by 0.81% were the top losing indices on BSE.

The lone gainer on the Sensex was Adani Ports &SEZ up by 0.51%. On the flip side, Bajaj Finserv down by 2.09%, Bharti Airtel down by 1.77%, Power Grid Corporation down by 1.51%, Nestle down by 1.42% and Kotak Mahindra Bank down by 1.40% were the top losers.

Meanwhile, in a remarkable achievement, Minister of State for Finance, Pankaj Chaudhary, has said that India has garnered Foreign Direct Investment (FDI) inflows amounting to $709.8 billion between April 2014 and September 2024. India’s FDI policy framework is built on the principle of openness, allowing 100 per cent FDI under the automatic route in most of the sectors. More than 90 per cent of FDI inflows are received through this route, showcasing the effectiveness of simplified regulations. 

Strategic initiatives such as increasing FDI limits, removing regulatory barriers, and improving infrastructure have further enhanced the ease of doing business in the country. He stated since 2014, significant reforms across multiple sectors have boosted FDI inflows. In the defence sector, the FDI cap was raised from 26 per cent to 49 per cent, while 100 per cent FDI under the automatic route was permitted in railway infrastructure. Similarly, the insurance sector has seen its FDI limit progressively increase to 74 per cent, with the pension sector also opening up to foreign investment.

The telecom sector witnessed major liberalization in 2021, allowing 100 per cent FDI under the automatic route. In the manufacturing sector, foreign investments have been permitted under the automatic route, including contract manufacturing. Other key reforms include easing local sourcing norms for Single Brand Retail Trading (SBRT), allowing 26 per cent FDI in digital media, and liberalizing the space sector in 2024 to attract global players.

The CNX Nifty is currently trading at 24412.00, down by 256.25 points or 1.04% after trading in a range of 24404.25 and 24624.10. There were 4 stocks advancing against 46 stocks declining on the index.

The top gainers on Nifty were Adani Ports & SEZ up by 1.02%, Cipla up by 0.95%, Tata Motors up by 0.04% and Adani Enterprises up by 0.02%. On the flip side, Shriram Finance down by 3.57%, Bajaj Finserv down by 1.94%, Grasim Industries down by 1.79%, Bharti Airtel down by 1.69% and Power Grid Corporation down by 1.61% were the top losers.

Asian markets are trading mostly in red; Nikkei 225 slipped 43.69 points or 0.11% to 39,413.80, Hang Seng declined 109.05 points or 0.55% to 19,686.44, KOSPI dropped 32.69 points or 1.31% to 2,456.28, Straits Times fell 20.04 points or 0.52% to 3,800.99, Jakarta Composite plunged 47.59 points or 0.66% to 7,211.04 and Shanghai Composite weakened 21.93 points or 0.65% to 3,364.40.

On the flip side, Taiwan Weighted added 73.01 points or 0.32% to 23,112.91.