IGI Logo

Indian bourses continued to trade in red terrain in noon session, with the Sensex losing over 400 points and Nifty falling below the 18000 level, amid weak Asian cues. Sentiments were dampened as U.S. Federal Reserve raised interest rates and indicated it would raise rate more often than markets had expected. Traders were also worried as foreign institutional investors (FIIs) have net sold shares worth Rs 461.04 crore on September 21, as per provisional data available on the NSE. Additional pressure also came with private report stating that India's headline retail inflation is expected to rise to a five-month high of 7.4% in September, with the risk of going higher if the momentum of food and vegetable prices picks up further in the rest of the month. Depreciating rupee too added pressure on the markets. The partially convertible rupee was at 80.76, down 0.80 paise against its previous close of Rs 79.96 against US dollar. On the global front, Asian markets were trading mostly lower as the recession fears spurred in the market after Federal Reserve signalled 175 basis points interest rate hikes by the year-end.

The BSE Sensex is currently trading at 58963.58, down by 493.20 points or 0.83% after trading in a range of 58881.99 and 59403.05. There were 8 stocks advancing against 22 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.52%, while Small cap index was down by 0.33%.

The only gaining sectoral indices on the BSE was FMCG was up by 0.76%, while Bankex down by 1.53%, Realty down by 1.30%, Energy down by 1.29%, Oil & Gas down by 1.20% and PSU was down by 1.16% were the top losing indices on BSE.

The top gainers on the Sensex were Dr. Reddy's Lab up by 1.58%, Hindustan Unilever up by 1.41%, ITC up by 1.33%, TCS up by 0.71% and Asian Paints was up by 0.65%. On the flip side, Bajaj Finserv down by 3.28%, Power Grid down by 2.83%, Axis Bank down by 2.21%, HDFC Bank down by 1.73% and HDFC was down by 1.68% were the top losers.

Meanwhile, Union Power Minister R K Singh has exuded confidence that the second version of production linked incentive (PLI-II) scheme for solar manufacturing worth Rs 19,500 crore, will help save close to Rs 1.4 lakh crore forex every year and it will also result in a huge quantity of inflows on account of exports.

The minister stated that one of the benefits expected from the PLI scheme is that about 65,000 MW per annum manufacturing capacity of fully and partially integrated solar PV modules would be installed. The scheme is expected to create direct employment of about 1,95,000 and indirect employment for around 7,80,000 people. Besides, the scheme will bring a direct investment of around Rs 94,000 crore. He noted that the national programme on high-efficiency solar PV modules aims to build an ecosystem for manufacturing of high-efficiency solar PV modules in India, and thus reduce import dependence in the area of renewable energy. It will strengthen the Atamnirbhar Bharat initiative and generate employment.

Singh further said solar PV manufacturers will be selected through a transparent selection process. PLI will be disbursed for five years post commissioning of solar PV manufacturing plants on sales of high-efficiency solar PV modules from the domestic market will be incentivized. He added that the first round PLI-I was worth Rs 4,500 crore for 8,700 MW of manufacturing capacity.

The CNX Nifty is currently trading at 17570.90, down by 147.45 points or 0.83% after trading in a range of 17544.30 and 17708.25. There were 11 stocks advancing against 39 stocks declining on the index.

The top gainers on Nifty were Dr. Reddy's Lab up by 1.49%, Hindustan Unilever up by 1.44%, ITC up by 1.38%, Eicher Motors up by 1.19% and Britannia Inds up by 0.96%. On the flip side, Bajaj Finserv down by 3.35%, Power Grid Corp down by 3.15%, SBI Life Insurance down by 2.59%, Axis Bank down by 2.22% and Coal India was down by 2.18% were the top losers.

Asian markets were trading mostly lower; Hang Seng decreased 318.79 points or 1.73% to 18,125.83, Nikkei 225 slipped 159.30 points or 0.58% to 27,153.83, Taiwan Weighted dropped 139.89 points or 0.97% to 14,284.63, KOSPI fell 14.90 points or 0.63% to 2,332.31, Straits Times trembled 8.30 points or 0.25% to 3,253.49 and Shanghai Composite was down by 1.09 points or 0.03% to 3,116.09.

On the flip side, Jakarta Composite was up by 14.71 points or 0.2% to 7,203.02.

Above views are of the author and not of the website kindly read disclaimer