Markets trade in red in late morning deals

Indian equity markets were trading in red in late morning deals on account of hectic selling in IT industry related stocks. Infosys, Tech Mahindra, TCS and HCL Technologies were trading lower in range of 5-7.5%. IT stocks were under pressure after AI company Anthropic, headquartered in San Francisco, has unveiled new AI tools capable of handling tasks like document reviews and data analysis, work that companies often outsource to Indian IT firms. Besides, rising crude oil prices weighed on the domestic sentiments. Crude oil prices surged after the U.S. shot down an Iranian drone approaching a U.S. aircraft carrier and armed boats approached a U.S.-flagged vessel in the Strait of Hormuz, stoking concerns that talks aimed at de-escalating U.S.-Iran tensions could be disrupted.

On the global front, Asian markets were trading mixed following weak cues from the US markets overnight. Back home, on the BSE sectoral front, traders were seen piling up positions in Oil & Gas, Consumer Durables, Utilities, Energy and Power, while selling was witnessed in IT, TECK, Healthcare, Realty and Capital Goods.

The BSE Sensex is currently trading at 83556.83, down by 182.30 points or 0.22% after trading in a range of 83119.95 and 83885.87. There were 19 stocks advancing against 11 stocks declining on the index.

The top gaining sectoral indices on the BSE were Oil & Gas up by 2.16%, Consumer Durables up by 1.80%, Utilities up by 1.77%, Energy up by 1.71% and Power up by 1.54%, while IT down by 6.30%, TECK down by 4.25%, Healthcare down by 0.60%, Realty down by 0.40% and Capital Goods down by 0.21% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.14%, Trent up by 2.11%, Titan up by 1.83%, Eternal up by 1.73% and NTPC up by 1.62%. On the flip side, Infosys down by 7.50%, Tech Mahindra down by 6.74%, TCS down by 6.26%, HCL Technologies down by 5.48% and ITC down by 1.20% were the top losers. 

Meanwhile, EU Ambassador to India Herve Delphin has said India-European Union free trade agreement (India–EU FTA) is currently undergoing legal scrubbing and both sides are committed to concluding the process swiftly for its signing and coming into force, possibly this year. He described the India–EU FTA as a very substantial deal rather than an empty shell. 

The ambassador listed overlapping economic interests, complementarity, scale, diversification, and de-risking as key drivers. He said ‘from the European side, the EU member states, the Commission, and leadership, and on the Indian side, we saw the same commitment’. He noted enthusiasm from business communities on both sides, emphasising opportunities in supply chain integration and worker mobility.  

He described the newly signed Security and Defence Partnership as a progression from five years of security and defence consultations. This Security and Defence Partnership is a political enabler. It shows that both sides see each other as trusted partners. The next steps include negotiating a Security of Information Agreement as a ‘legal enabler’ for exchanging classified information, followed by defence industry cooperation involving co-development and co-investment opportunities. He said the partnership would lead to deeper operational cooperation, including between the Indian Navy and European navies on protecting safe passage in the Indian Ocean.

The CNX Nifty is currently trading at 25698.05, down by 29.50 points or 0.11% after trading in a range of 25563.95 and 25801.80. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were ONGC up by 4.14%, Power Grid up by 2.17%, Trent up by 2.10%, Coal India up by 1.77% and Titan up by 1.72%. On the flip side, Infosys down by 7.56%, Tech Mahindra down by 6.73%, TCS down by 6.33%, HCL Technologies down by 5.31% and Wipro down by 4.40% were the top losers.

Asian markets were trading mixed; Taiwan Weighted added 63.55 points or 0.2% to 32,258.91, Shanghai Composite strengthened 10.87 points or 0.27% to 4,078.61, KOSPI increased 78.88 points or 1.47% to 5,366.96 and Straits Times rose 2.61 points or 0.05% to 4,946.70. However, Nikkei 225 slipped 370.66 points or 0.68% to 54,350.00, Jakarta Composite plunged 43.28 points or 0.54% to 8,079.32 and Hang Seng declined 26.77 points or 0.1% to 26,808.00.