Bourses turn red in early afternoon session

Indian markets entered into red territory in early afternoon session tracing weak cues from other Asian markets. Traders were cautious ahead of India’s Consumer Price Index (CPI) data, which is due on December 12. Besides, Foreign Institutional Investors (FIIs) outflows also dampened traders’ sentiments. Traders overlooked the Reserve Bank of India (RBI) Governor Sanjay Malhotra’s statement that Reserve Bank of India (RBI) Governor Sanjay Malhotra has said that while there has been steady improvement in the health and operations of the banking sector in 2025, banks must avoid complacency and remain vigilant in a dynamic environment. Besides, Asian Development Bank (ADB) in its latest Asian Development Outlook has upgraded India’s growth projection by 0.7 percentage points to 7.2% for fiscal year ending March 2026 from 6.5% projected in September release. On the global front, Asian markets were trading mostly in red as China's consumer price inflation accelerated in November and factory gate prices continued to fall. The consumer price index rose 0.7 percent on a yearly basis in November, in line with expectations, and faster than the 0.2 percent increase in October.

The BSE Sensex is currently trading at 84575.32, down by 90.96 points or 0.11% after trading in a range of 84571.67 and 85020.34. There were 16 stocks advancing against 14 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index declined 0.37%, while Small cap index was up by 0.04%.

The top gaining sectoral indices on the BSE were Metal up by 0.87%, Basic Materials up by 0.53%, Utilities up by 0.52%, Energy up by 0.48% and Oil & Gas was up by 0.45%, while Capital Goods down by 0.41%, IT down by 0.39%, Bankex down by 0.39%, TECK down by 0.34% and Industrials was down by 0.13% were the top losing indices on BSE.

The top gainers on the Sensex were Adani Ports up by 1.25%, Mahindra & Mahindra up by 0.97%, Tata Steel up by 0.93%, NTPC up by 0.73% and Reliance Industries up by 0.65%. On the flip side, Eternal down by 2.02%, HDFC Bank down by 0.92%, TCS down by 0.57%, Axis Bank down by 0.54% and Bajaj Finance down by 0.54% were the top losers.

Meanwhile, Assocham President Nirmal Kumar Minda has cautioned against a blanket reduction in import duties on auto components under the proposed free trade agreement (FTA) with the European Union (EU), saying such concessions must be ‘calibrated’ to avoid hurting domestic manufacturers, particularly MSMEs. He said that if duty concessions to the EU under the proposed agreement provide domestic players access to advanced technology, larger markets and stable supply chains, there is merit in considering them, particularly for products where India has a cost advantage.

India and the 27-nation EU bloc have been negotiating a trade pact since 2007. On December 9, the two sides concluded a high-level meeting on the pact. The EU is seeking concessions in import duty in the country's automobile and components sectors. He said any concession must therefore be linked to clear reciprocity, phased timelines, and safeguards to ensure India's manufacturing base continues to grow. He also said that the new trade agreements have helped improve market access, reduce duties, and bring in long-term investment commitments that support manufacturing, technology, and services.

He further said many sectors are seeing better export traction, though MSMEs still need support to fully leverage these opportunities. Looking ahead, any potential FTA with large advanced markets including US and EU must carefully address reciprocal tariff expectations, regulatory standards, and sensitive product lines. He noted that if designed well, such agreements can significantly enhance India's competitiveness and help industries integrate more deeply into global value chains. 

The CNX Nifty is currently trading at 25826.30, down by 13.35 points or 0.05% after trading in a range of 25817.35 and 25947.65. There were 25 stocks advancing against 25 stocks declining on the index.

The top gainers on Nifty were Eicher Motors up by 1.80%, Hindalco up by 1.46%, HDFC Life Insurance up by 1.30%, Adani Ports up by 1.25% and Mahindra & Mahindra up by 1.14%. On the flip side, Interglobe Aviation down by 2.18%, Eternal down by 1.90%, HDFC Bank down by 0.89%, Apollo Hospital down by 0.68% and Bajaj Finance down by 0.57% were the top losers.

Asian markets were trading mostly in red; Nikkei 225 slipped 182.1 points or 0.36% to 50,473.00, Hang Seng declined 19.23 points or 0.08% to 25,415.00, Shanghai Composite weakened 9.02 points or 0.23% to 3,900.50, KOSPI dropped 8.55 points or 0.21% to 4,135.00 and Straits Times was down by 6.18 points or 0.14% to 4,507.06. On the flip side, Jakarta Composite gained 30.64 points or 0.35% to 8,687.82 and Taiwan Weighted was up by 218.13 points or 0.77% to 28,400.73.