Indian equity benchmarks continue to trade in red in afternoon session amid selling witnessed in frontline blue chip stocks such as Dr. Reddy's Lab, HDFC and Nestle among others. Besides, broader indices were also trading in red, dragging their larger peers lower during the trade. Sentiments were fragile as depositories data showing that overseas investors have pulled out a net Rs 1,14,855.97 crore from the Indian markets in the current year so far, amid heightened geopolitical tensions and inflation concerns. Foreign portfolio investors have sold domestic equities worth Rs 48,261.65 crore so far this month, taking the year-to-date tally this year to a massive Rs 1,14,855.97 crore. However, downfall remain capped with Niti Aayog Vice-Chairman Rajiv Kumar’s statement that India can double its economy in about 7-8 years if it grows at 8 per cent, which is feasible as the country has sustained a growth rate of 8.5 per cent earlier for a long time.
On the global front, Asian markets were trading mixed as coronavirus lockdown in Shanghai looked set to hit global activity, while throwing another wrench into supply chains that could add to inflationary pressures. Back home, according to private report, India is looking to sign long-term contracts with Mercosur countries to import crude sunflower oil. Russia’s invasion of Ukraine has disrupted imports from Europe's second-largest nation, which has resulted in a sharp spike in edible oil prices.
The BSE Sensex is currently trading at 56991.28, down by 370.92 points or 0.65% after trading in a range of 56825.09 and 57494.36. There were 6 stocks advancing against 24 stocks declining on the index.
The broader indices were trading in red; the BSE Mid cap index lost 1.07%, while Small cap index was down by 0.97%.
The only gaining sectoral indices on the BSE were Oil & Gas up by 0.21% and Metal was up by 0.07%, while Consumer Durables down by 1.73%, Industrials down by 1.16%, Capital Goods down by 1.10%, Realty down by 0.96% and Healthcare was down by 0.89% were the top losing indices on BSE.
The top gainers on the Sensex were ICICI Bank up by 0.84%, ITC up by 0.71%, Bharti Airtel up by 0.56%, Maruti Suzuki up by 0.28% and Indusind Bank was up by 0.22%. On the flip side, Dr. Reddy's Lab down by 2.59%, HDFC down by 2.59%, Nestle down by 2.07%, Mahindra & Mahindra down by 1.61% and HDFC Bank was down by 1.52% were the top losers.
Meanwhile, in order to promote ease of doing business and growth of the sector, the draft Rubber (Promotion and Development) Bill, 2022, has proposed a series of steps, including replacement of periodic licensing with one-time registration, removal of permission requirement for possession of natural rubber and laying down clear procedures for inspection. The commerce ministry has proposed the repeal of decades-old laws on rubber and introduced new legislation that seeks to address the challenges faced by the sector and remove some of the archaic provisions of present law to create a conducive environment for businesses.
The Department of Commerce has said it is proposing to repeal the Rubber Act 1947 and introduce a new law. Explaining the rationale behind the proposal to repeal the Rubber Act, the draft bill has said that in recent years, there have been widespread changes in the industrial and economic scenario, especially concerning development in rubber and allied sectors. Therefore, it has become imperative to remove archaic provisions, create an environment conducive for easy conduct of business, reorient functions of the (Rubber) Board with equal focus on upstream and downstream sectors and to contribute towards making world-class rubber industry.
The other new clauses proposed in the draft include removal of provisions relating to import and sale of natural rubber (NR) and its purchase in the domestic market by Rubber Board; specific provisions for developing and assisting new plantations and revising existing ones; norms to promote research, exports, human resource development, skill development in line with the needs of the industry; and replacing certain penal actions with a civil penalty.
The CNX Nifty is currently trading at 17050.40, down by 102.60 points or 0.60% after trading in a range of 17003.90 and 17196.60. There were 11 stocks advancing against 38 stocks declining, while 1 stock remain unchanged on the index.
The top gainers on Nifty were Bajaj Auto up by 1.11%, ICICI Bank up by 0.80%, Hindalco up by 0.74%, ITC up by 0.71% and JSW Steel was up by 0.58%. On the flip side, SBI Life Insurance down by 3.04%, Dr. Reddy's Lab down by 2.62%, HDFC down by 2.49%, HDFC Life Insurance down by 2.29% and UPL was down by 2.25% were the top losers.
Asian markets were trading mixed; Shanghai Composite declined 3.68 points or 0.11% to 3,208.56, Taiwan Weighted dropped 156.94 points or 0.89% to 17,520.01, KOSPI fell 3.25 points or 0.12% to 2,726.73 and Nikkei 225 was down by 205.95 points or 0.73% to 27,943.89.
On the flip side, Hang Seng increased 142.12 points or 0.66% to 21,547.00, Jakarta Composite soared 26.55 points or 0.38% to 7,029.08 and Straits Times was up by 10.80 points or 0.32% to 3,424.49.
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