Bourses trade at day’s low levels in early afternoon session

Key benchmark indices traded at day’s low levels in early afternoon session following weak cues from other Asian markets. As for broader indices, the BSE Mid cap index and Small cap index traded with cut of over half a percent. Sentiments were downbeat as Reserve Bank of India (RBI) in its latest data has showed that bank credit as well as deposits witnessed deceleration during the October-December quarter (Q3FY25) sequentially. Bank credit growth (y-o-y) decelerated to 11.8 per cent in December 2024 from 12.6 per cent in September 2024, while aggregate deposits increased at a marginally lower pace at 11 per cent as compared to 11.7 per cent growth in July-September period.  On the global front, Asian markets are trading mostly in red as traders reacted to a report showing consumer sentiment in the U.S. deteriorated by much more than expected in February amid a surge by year-ahead inflation expectations.

The BSE Sensex is currently trading at 74543.41, down by 767.65 points or 1.02% after trading in a range of 74493.97 and 74907.04. There were 5 stocks advancing against 24 stocks declining on the index, while 1 stock remained unchanged. 

The broader indices were trading in red; the BSE Mid cap index declined 0.83%, while Small cap index was down by 0.65%.

The only gaining sectoral indices on the BSE were FMCG up by 0.23% and Auto was up by 0.07%, while IT down by 2.54%, TECK down by 2.47%, Telecom down by 2.10%, Metal down by 1.56% and Power was down by 1.09% were the top losing indices on BSE.

The top gainers on the Sensex were Mahindra & Mahindra up by 1.42%, Nestle up by 0.78%, ITC up by 0.37%, Kotak Mahindra Bank up by 0.20% and Maruti Suzuki up by 0.00%. On the flip side, HCL Tech down by 3.09%, Infosys down by 2.91%, Zomato down by 2.69%, TCS down by 2.27% and Bharti Airtel down by 2.11% were the top losers.

Meanwhile, NITI Aayog CEO BVR Subrahmanyam has said that tariff does not protect any country and India needs to cut tariffs for its own good, irrespective of who tells India to do so. He further said that being open to the world has to be among the top five priorities of India if it wants to become a developed country. He said to cut tariffs, India must complete trade agreements with the European Union, the United Kingdom and other major economies. He stressed that deregulation at both centre and the state levels are critical for making India a part of the global supply chains. There is interest in India but people visit, see and fly to other countries.

Subrahmanyam pointed that Indonesia, Vietnam, Turkey and others have been beneficiaries of 'China plus one' strategy of global companies. He argued that global value chain needs more than PLI (production linked incentive) -- it needs deregulation and skilling too. He termed the paperwork involved in business horrendous, which is killing the MSMEs. According to him, the Niti Aayog is trying to push India into global supply chains in different sectors.

He informed that the Aayog's recommendations for the electronics component supply chain are awaiting Cabinet clearance and it is working on the steps needed by auto component, chemicals, textiles and footwear sectors to join global supply chains. He also informed that the Niti Aayog has conceptualised a national manufacturing mission which will be launched in three months. The mission will coordinate with more than 20 ministries on manufacturing related policies. Along with manufacturing, he opined that education and agriculture have to be the top three priorities of the country to become a developed country. 

The CNX Nifty is currently trading at 22571.05, down by 224.85 points or 0.99% after trading in a range of 22548.35 and 22668.05. There were 12 stocks advancing against 38 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 1.36%, Mahindra & Mahindra up by 1.35%, Eicher Motors up by 1.04%, Nestle up by 0.86% and Bharat Electronics up by 0.53%. On the flip side, Wipro down by 3.38%, HCL Tech down by 3.09%, Infosys down by 2.84%, TCS down by 2.23% and Bharti Airtel down by 2.12% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 164.94 points or 0.7% to 23,565.31, Hang Seng declined 77.22 points or 0.33% to 23,400.70, Jakarta Composite plunged 58.67 points or 0.87% to 6,744.33, KOSPI dropped 9.31 points or 0.35% to 2,645.27 and Shanghai Composite was down by 8.93 points or 0.26% to 3,370.18. On the flip side, Straits Times was up by 9.82 points or 0.25% to 3,939.76.