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Indian equity markets erased gains and started trading in red in the afternoon session with both Sensex and Nifty were trading below 55500 and 16550 marks, respectively. Sentiments got hurt as Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai stated that bilateral trade between Afghanistan and India will get impacted significantly in these uncertain times. He said domestic exporters should follow caution looking into the political development in Afghanistan, particularly with regard to payments, for which adequate credit insurance may be availed by them. Some concern also came as foreign portfolio investors (FPIs) sold Rs 7,000 crore worth of equities in the secondary markets in the June quarter. The holding of these investors (including ADR and GDR) in the BSE-200 index declined to 23.9 per cent from 24.4 per cent in March 2021. On the global front, all Asian markets were under pressure amid concern about turmoil in Afghanistan and unease about China’s economic outlook after weak July activity.

Back home, on the sectoral font, oil and gas stocks were in focus as Finance Minister Nirmala Sitharaman ruled out cut in excise duty on petrol and diesel to ease prices, which have touched an all-time high, saying payments in lieu of past subsidised fuel pose limitations. Traders were seen piling position in IT, TECK and Healthcare stocks, while selling was witnessed in Metal, Auto and Realty sector stocks.

The BSE Sensex is currently trading at 55485.63, down by 96.95 points or 0.17% after trading in a range of 55386.49 and 55688.50. There were 12 stocks advancing against 17 stocks declining, while 1 stock remains unchanged on the index.The broader indices were trading in green; the BSE Mid cap index rose 0.04%, while Small cap index was up by 0.08%.

The top gaining sectoral indices on the BSE were IT up by 1.40%, TECK up by 1.08%, Healthcare up by 0.96%, FMCG up by 0.65% and Consumer Durables was up by 0.06%, while Metal down by 1.39%, Auto down by 1.15%, Realty down by 1.14%, Telecom down by 1.09% and Bankex was down by 1.06% were the top losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 3.18%, HCL Tech up by 2.07%, Asian Paints up by 1.60%, Nestle up by 1.44% and Hindustan Unilever was up by 1.30%. On the flip side, Indusind Bank down by 2.09%, Mahindra & Mahindra down by 1.78%, Axis Bank down by 1.40%, SBI down by 1.39% and ICICI Bank was down by 1.31% were the top losers.

Meanwhile, Care Ratings in its latest report has said that India's pharmaceutical sector is looking at an opportunity to the tune of $10 to 11 billion in the form of COVID-19 vaccine supply, in both domestic and export markets in the next three years. However, it said the Indian vaccine makers are unlikely to get the premium pricing being enjoyed by US-based multinational companies which are anywhere between $15 and 25 per dose, their average realization could remain anywhere between $3.25 and $3.50 per dose.

According to the report, the majority of domestic demand is expected to be fulfilled by March 2022, when the export opportunities in the high-income markets such as Europe, North America, and developed Asian countries are likely to be completely exhausted. However, it said the export opportunities in various African, Asian excluding China and Japan and some South American countries, where the pace of vaccination remains very slow would still exist, which is expected to remain greater than 1.25 billion doses.

The report further said as the majority of the Indian populace is expected to get vaccinated during 2021, the opportunity for domestic pharma companies for this period is about $4.6 billion. However, it said the same is expected to increase to $4.9 billion during 2022 with an increase in exports. Furthermore, it said with near saturation of demand, the sales opportunity is expected to come down to about $1.6 billion during 2023, thus, $10-11 billion worth of opportunity for Indian vaccine manufacturers during 2021-2023.

The CNX Nifty is currently trading at 16528.35, down by 34.70 points or 0.21% after trading in a range of 16495.50 and 16591.40. There were 19 stocks advancing against 30 stocks declining, while 1 stock remains unchanged on the index.

The top gainers on Nifty were Tech Mahindra up by 3.17%, Tata Consumer Products up by 2.63%, HCL Tech up by 1.96%, Asian Paints up by 1.69% and Wipro was up by 1.64%. On the flip side, Tata Motors down by 2.75%, Indusind Bank down by 2.16%, Coal India down by 2.15%, Mahindra & Mahindra down by 1.78% and Indian Oil Corp down by 1.73% were the top losers.

All Asian markets were trading in red; Taiwan Weighted dropped 197.41 points or 1.17% to 16,661.36, KOSPI fell 28.20 points or 0.89% to 3,143.09, Shanghai Composite declined 69.05 points or 1.96% to 3,448.29, Hang Seng decreased 532.17 points or 2.03% to 25,649.29, Nikkei 225 slipped 98.72 points or 0.36% to 27,424.47 and Straits Times was down by 26.73 points or 0.85% to 3,118.79.

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