Key gauges continue to trade lower in morning deals

Indian equity benchmarks continued to trade lower in morning deals, pressured by Realty and Industrials stocks, as weak global sentiment impacted the markets. Traders remained cautious amid unabated foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,463.72 crore on Monday, according to exchange data. Traders overlooked a survey of the Federation of Indian Chambers of Commerce and Industry (FICCI) stated that the growth momentum of India’s manufacturing sector continues with 83 per cent of manufacturers reporting either higher or stable production levels, making this the second-highest index recorded in recent years. Sector-wise, stocks related to agriculture sector remained in watch as the agriculture ministry has revised guidelines for Market Intervention Scheme (MIS), increasing the procurement limit of crops to 25 per cent from 20 per cent. The guidelines has been revised to encourage states to implement the MIS. On the global front, Asian markets are trading mostly in red after U.S. President Donald Trump substantially raised tariffs on steel and aluminum imports to the U.S. to a flat 25 percent without exceptions or exemptions.

The BSE Sensex is currently trading at 77009.36, down by 302.44 points or 0.39% after trading in a range of 76931.77 and 77387.28. 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 1.88%, while Small cap index was down by 2.43%.

The lone gaining sectoral index on the BSE were TECK up by 0.03%, while Realty down by 2.76%, Industrials down by 1.89%, PSU down by 1.82%, Healthcare down by 1.62% and Consumer Discretionary down by 1.62% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 0.93%, Adani Ports &SEZ up by 0.77%, HCL Technologies up by 0.55%, Bharti Airtel up by 0.39% and Reliance Industries up by 0.32%. On the flip side, Zomato down by 4.01%, Power Grid Corporation down by 2.20%, Tata Motors down by 1.65%, Bajaj Finserv down by 1.25% and Kotak Mahindra Bank down by 1.20% were the top losers.

Meanwhile, Steel Secretary Sandeep Poundrik has said that the US announcement to impose tariffs on steel imports will not have much impact on the Indian industry as the domestic market is strong and a small quantity is exported to America. Besides, the Trumps announced a new 25 percent tariff on all steel and aluminium imports. However, in 2018, when the US imposed taxes on steel and aluminium, India retaliated by raising tariffs on 29 US products, recovering equivalent revenue.

Further, on exports, Poundrik said it will become a problem as more countries put safeguards and restrictions. He explained that the India's domestic market itself is so strong with growing consumption that the steel industry will find it difficult to cater to that in the coming years. 

As per official data, the country remained a net importer of steel with the inbound shipments rising over 20 per cent to 8.29 million tonnes during the April-January period of the current fiscal, while the exports have declined by 28.9 per cent to 3.99 million tonnes during the same period compared to 5.61 million tonnes in the corresponding period of the preceding fiscal. 

The CNX Nifty is currently trading at 23289.00, down by 92.60 points or 0.40% after trading in a range of 23261.25 and 23390.05. There were 14 stocks advancing against 36 stocks declining on the index.

The top gainers on Nifty were Adani Enterprises up by 4.16%, Grasim Industries up by 2.17%, Trent up by 0.97%, Infosys up by 0.88% and Hindalco up by 0.70%. On the flip side, Eicher Motors down by 5.57%, Apollo Hospital down by 3.74%, Bharat Electronics down by 2.23%, Power Grid Corp down by 2.18% and SBI Life Insurance down by 2.13% were the top losers.

Asian markets are trading mostly in red; Straits Times fell 16.37 points or 0.42% to 3,858.76, Jakarta Composite plunged 104.46 points or 1.57% to 6,543.68, Shanghai Composite weakened 5.34 points or 0.16% to 3,316.83 and Hang Seng declined 126.25 points or 0.59% to 21,395.73.

On the flip side, Taiwan Weighted added 95.05 points or 0.41% to 23,347.19 and KOSPI increased 19.07 points or 0.76% to 2,540.34.