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Bears were holding a tight grip over the Dalal Street in early afternoon session, with both Sensex and Nifty trading near their intraday low points, impacted by negative cues from other Asian markets. Domestic sentiments remained downbeat, amid a private report stating that taking binding commitments on new issues like environment, labour and sustainability in the proposed free trade agreements (FTA), being negotiated by India, may hamper the country's exports in the future. Traders overlooked reports that bank credit rose 17 per cent year-on-year (YoY) to Rs 129.26 trillion as on November 4, reflecting robust offtake in the busy season.

On the global front, Asian markets were trading mostly in red, as Japan's consumer price inflation rose to a 40-year high in October as weaker yen lifted prices of imported goods. The data from the Ministry of Internal Affairs and Communications revealed that core inflation that excludes fresh food advanced to 3.6 percent from 3.0 percent a month ago. Consumer price inflation rose to 3.7 percent in October from 3.0 percent in September.

Back home, media and entertainment industry stocks were in watch, as Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Piyush Goyal said that the media and entertainment industry presented a remarkable opportunity for India but stressed that this opportunity could be realized only if the entire industry and all its verticals and stakeholders come together to ideate and synergize.

The BSE Sensex is currently trading at 61420.94, down by 329.66 points or 0.53% after trading in a range of 61357.70 and 61929.88. There were 6 stocks advancing against 24 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.48%, while Small cap index was down by 0.34%.

The top losing sectoral indices on the BSE were Auto down by 0.92%, Consumer Durables down by 0.85%, Capital Goods down by 0.72%, Realty down by 0.66% and TECK down by 0.61%, while there were no gaining sectoral indices on the BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 0.58%, Axis Bank up by 0.45%, Hindustan Unilever up by 0.25%, Sun Pharma up by 0.06% and SBI up by 0.03%. On the flip side, Mahindra & Mahindra down by 2.38%, Bajaj Finance down by 1.20%, Bharti Airtel down by 1.16%, Maruti Suzuki down by 1.04% and Indusind Bank down by 0.92% were the top losers.

Meanwhile, in a relief to exporters, the commerce ministry has directed the field formations to reduce average export obligations for sectors that have registered more than 5 per cent decline in shipments during 2021-22. A total of 192 product groups registered a decline of more than 5 per cent in exports in 2021-22 compared to 2020-21 and that includes certain ores, gold, yarn, ground nut oil and cheese and curd.

The Directorate General of Foreign Trade (DGFT) in a public notice said that the sector/product group that witnessed such decline in 2021-22 as compared to 2020-21 would be entitled for such relief. The DGFT asked its regional offices to re-fix the annual average export obligation for the Export Promotion Capital Goods (EPCG) authorisation for 2021-22 accordingly.

Under the EPCG scheme, imports of capital goods are allowed duty free, subject to an export obligation. The authorisation holder (or exporter) under the scheme has to export finished goods worth six times of the actual duty saved in value terms in six years. The objective of the Export Promotion Capital Goods (EPCG) scheme is to facilitate import of capital goods for producing quality goods and services and enhance India's manufacturing competitiveness.

Foreign trade policy (2015-20) was extended till March 31 next year envisages that to provide relief to exporters of those sectors where total exports in that sector/product group has declined by more than 5 per cent as compared to the previous year, the average export obligation for the year may be reduced proportionate to reduction in exports of that particular sector/product group during the relevant year s against the preceding year.

The CNX Nifty is currently trading at 18244.05, down by 99.85 points or 0.54% after trading in a range of 18220.95 and 18394.60. There were 6 stocks advancing against 43 stocks declining, while one stock remained unchanged on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 0.49%, Tata Motors up by 0.46%, Axis Bank up by 0.37%, Divi's Lab up by 0.29% and Hindustan Unilever up by 0.19%. On the flip side, Mahindra & Mahindra down by 2.44%, ONGC down by 1.47%, Bajaj Finance down by 1.35%, Coal India down by 1.29% and Britannia Industries down by 1.24% were the top losers.

Asian markets were trading mostly in red; Straits Times trembled 14.19 points or 0.43% to 3,271.85, Shanghai Composite declined 17.90 points or 0.57% to 3,097.53, Taiwan Weighted dropped 30.24 points or 0.21% to 14,504.99, Nikkei 225 slipped 30.80 points or 0.11% to 27,899.77 and Hang Seng decreased 108.84 points or 0.6% to 17,936.82, while KOSPI rose 1.58 points or 0.06% to 2,444.48 and Jakarta Composite soared 43.38 points or 0.62% to 7,088.37.

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