Markets relinquish early gains to trade in red

Indian equity markets relinquished early gains to trade lower in late afternoon session as traders opted to book some profit following the recent gains. Besides, fund outflows by foreign institutional investors (FIIs) weighed on investors' sentiments. The FIIs were the net sellers of equities worth Rs 1,766.05 crore on Friday. On the sectoral front, Asian equity markets were trading mostly in green amid hopes of a Federal Reserve rate cut in December. European equity markets were trading higher as signs of progress on a Ukraine peace plan boosted investors’ sentiment.

The BSE Sensex is currently trading at 85143.97, down by 87.95 points or 0.10% after trading in a range of 85117.40 and 85473.47. There were 13 stocks advancing against 17 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index declined 0.27%, while Small cap index was down by 0.91%.

The few gaining sectoral indices on the BSE were IT up by 0.68%, TECK up by 0.42% and Bankex up by 0.35%, while Utilities down by 1.34%, Realty down by 1.20%, Power down by 1.18%, Capital Goods down by 1.16% and Basic Materials down by 1.06% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.39%, HDFC Bank up by 0.75%, Kotak Mahindra Bank up by 0.67%, TCS up by 0.64% and Infosys up by 0.61%. On the flip side, Bharat Electronics down by 2.15%, Power Grid Corporation of India down by 1.66%, Mahindra & Mahindra down by 1.38%, Tata Steel down by 1.31% and Ultratech Cement down by 1.18% were the top losers.

Meanwhile, S&P Global Ratings in its Economic Outlook Asia-Pacific report has projected India's gross domestic product (GDP) to grow 6.5 per cent in the current fiscal year (FY26) and 6.7 per cent in the next, saying tax cuts and monetary policy easing will give a boost to consumption-driven growth. India's real GDP is estimated to have grown at the fastest pace in five quarters at 7.8 per cent in the April to June period of current fiscal year.  

S&P said if India can secure a trade agreement with the US, it will reduce uncertainty and enhance confidence, which would boost labour-intensive sectors. It noted that lowered goods and service tax (GST) rates will support middle-class consumption and complement income tax cuts and interest rate reductions introduced this year. It said these changes are likely to make consumption a greater driver of growth compared with investment, in this fiscal year, and the next.

It further said the spike in the effective US tariff on India is weighing on the expansion of export-oriented manufacturing in the country. But there are signs the US may lower tariffs on Indian products. It added that the US' new approach to trade policy is causing governments and firms to spend time and money on negotiating for exemptions, consequently diverting attention from efforts to raise productivity.

The CNX Nifty is currently trading at 26026.15, down by 42.00 points or 0.16% after trading in a range of 26025.75 and 26142.80. There were 17 stocks advancing against 33 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.29%, Eicher Motors up by 1.75%, Bajaj Auto up by 1.31%, Wipro up by 0.99% and HDFC Bank up by 0.82%. On the flip side, JSW Steel down by 2.49%, Bharat Electronics down by 2.29%, Max Healthcare Inst down by 2.05%, Power Grid Corporation of India down by 1.75% and Tata Steel down by 1.33% were the top losers.

Asian equity markets were trading mostly in green; Taiwan Weighted added 69.3 points or 0.26% to 26,504.24, Hang Seng advanced 433.98 points or 1.69% to 25,654.00, Straits Times rose 31.31 points or 0.7% to 4,500.45, Shanghai Composite strengthened 1.88 points or 0.05% to 3,836.77 and Jakarta Composite gained 99.95 points or 1.17% to 8,514.30, while Nikkei 225 slipped 1198.06 points or 2.46% to 48,625.88 and KOSPI dropped 7.20 points or 0.19% to 3,846.06.

European equity markets were trading higher; UK’s FTSE 100 increased 45.19 points or 0.47% to 9,584.90, France’s CAC rose 44.65 points or 0.56% to 8,027.30 and Germany’s DAX gained 256.83 points or 1.11% to 23,348.70.