IGI Logo

Indian equity benchmarks continued their trade in red, despite positive cues from other Asian markets. Selling at Metal, Realty and Capital Goods counters kept markets down, while ITC fell the most on the BSE. Traders remained cautious amid a private report stating that Indian businesses are likely to increase their spending on information technology slightly in 2023 amid the looming tensions on inflation and economic slowdown. India’s overall IT spending is projected to grow 2.6 per cent next year down from 22.1 per cent in 2021. Investors failed to get any sense of relief with reports that the Reserve Bank of India is likely to opt for a 35 basis points (bps) rate hike at its policy meeting in December, after three consecutive 50 bps increases, as inflation eased in October and is likely to dip further.

On the global front, Asian markets were trading higher, even after Japan's industrial production declined more than initially estimated in September. Industrial production decreased by seasonally adjusted 1.7 percent monthly in September, revised down from -1.6 percent estimated initially. Shipments declined by 2.5 percent monthly in September. Meanwhile, the inventories grew 2.9 percent and the inventory ratio gained 5.1 percent.

The BSE Sensex is currently trading at 61482.03, down by 142.12 points or 0.23% after trading in a range of 61436.90 and 61783.00. There were 11 stocks advancing against 19 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell by 0.16%, while Small cap index was down by 0.08%.

The top gaining sectoral indices on the BSE were Auto up by 0.54%, Consumer Durables up by 0.39%, Telecom up by 0.37%, Utilities up by 0.36% and Oil & Gas up by 0.29%, while Metal down by 1.58%, Realty down by 0.82%, Capital Goods down by 0.65%, Energy down by 0.61% and FMCG down by 0.52% were the top losing indices on BSE.

The top gainers on the Sensex were Ultratech Cement up by 1.92%, ICICI Bank up by 1.35%, NTPC up by 1.31%, Titan up by 1.09% and Bharti Airtel up by 1.04%. On the flip side, ITC down by 1.61%, Tata Steel down by 1.10%, Bajaj Finserv down by 1.02%, Kotak Mahindra Bank down by 0.98% and Nestle down by 0.92% were the top losers.

Meanwhile, Petroleum and Natural Gas Minister Hardeep Singh Puri has said that the Centre is ready for bringing petrol and diesel under the Goods and Services Tax (GST) regime but it is unlikely that the states will agree to such a move. He said ‘for bringing the petrol and diesel under the GST, the states have to agree. If the states make the move, we are ready. We have been ready all along. That's my understanding. It is another issue how to implement it. ‘

However, the minister pointed out that it is unlikely that the states will agree to such a move as liquor and energy are revenue generating items for them. It is not difficult to understand, states get revenue out of this. Liquor and energy are two things that generate revenue. It is only the Central government which is worried about inflation and other things.

He further said India has been able to insulate itself from the rising fuel prices by taking a number of steps, including reducing the excise duty by the Centre. He said ‘there are some countries in our neighbourhood which have fuel shortages, and prices are exorbitant. But we did not have shortages even in the remote areas of the country. It has been a very strong navigation at the level of the Centre and the states. What will happen in future it is difficult to say.’

The CNX Nifty is currently trading at 18305.20, down by 23.95 points or 0.13% after trading in a range of 18282.00 and 18378.15. There were 21 stocks advancing against 29 stocks declining on the index.

The top gainers on Nifty were ONGC up by 2.44%, Hero MotoCorp up by 2.29%, Adani Ports & SEZ up by 2.06%, Ultratech Cement up by 2.02% and ICICI Bank up by 1.34%. On the flip side, Coal India down by 6.51%, ITC down by 1.48%, Grasim Industries down by 1.38%, HDFC Life Insurance down by 1.01% and Tata Steel down by 1.01% were the top losers.

All Asian markets were trading higher; KOSPI rose 5.68 points or 0.23% to 2,480.33, Straits Times advanced 20.09 points or 0.62% to 3,280.89, Shanghai Composite gained 44.86 points or 1.45% to 3,128.26, Jakarta Composite soared 4.37 points or 0.06% to 7,023.76, Taiwan Weighted strengthened 371.41 points or 2.62% to 14,546.31, Nikkei 225 surged 26.70 points or 0.1% to 27,990.17 and Hang Seng increased 610.34 points or 3.46% to 18,230.05.

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