IGI Logo

Selling pressure continued on Indian equity markets, with Sensex and Nifty trading down by 537 points and 188 points respectively. Also, negative Asian leads continue to spell pessimism for local equity markets. Sentiments got hurt as report from the Euro-Mediterranean Center on Climate Change (CMCC) said that in India, the decline in rice and wheat yields due to climate change could lead to economic losses between 43-81 billion EUR (or 1.8-3.4% of GDP) by 2050. Traders were also concerned as foreign Institutional Investors stood as net sellers in the capital market as they offloaded shares worth Rs 1,913.36 crore on Wednesday, exchange data showed. On the global front, Asian markets were trading in red after a retreat on Wall Street as banks and health care companies pulled the S&P 500 and the Dow Jones Industrial Average back from their latest record highs.

Closer home, the selling pressure in realty, oil and gas and FMCG counters continue to weigh on the markets. The overall market breadth on BSE is in the favour of declines which have outnumbered advances in the ratio of 2160: 983; while 130 shares remain unchanged. Bucking the trend, IRCTC traded jubilantly after the scrip turned ex-stock split (sub-division of equity shares) in ratio of 1:5.

The BSE Sensex is currently trading at 60605.79, down by 537.54 points or 0.88% after trading in a range of 60485.26 and 61081.00. 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 0.48%, while Small cap index was down by 0.82%.

The only gaining sectoral indices on the BSE were Capital Goods up by 1.11% and Auto was up by 0.07%, while Realty down by 2.38%, Oil & Gas down by 1.77%, FMCG down by 1.56%, Metal down by 1.46% and Power was down by 1.43% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 4.92%, Larsen & Toubro up by 3.02%, Maruti Suzuki up by 2.06%, Ultratech Cement up by 1.53% and Asian Paints was up by 0.63%. On the flip side, ITC down by 4.55%, ICICI Bank down by 2.39%, Kotak Mahindra Bank down by 2.07%, Titan Company down by 1.64% and Tata Steel was down by 1.54% were the top losers.

Meanwhile, Aluminium Association of India (AAI) has urged the central government to immediately restart supply of coal and rakes to the aluminium industry to normalise the precarious situation due to fuel shortage. It also said the current fuel shortage has threatened the very survival of the domestic aluminium sector with risk of loss of over one million livelihoods and 5,000 SMEs (Small and Medium Enterprises) in the downstream sector.

The association has stated that despite untiring efforts to ensure continuous coal supplies, the current shortage due to stoppage/ curtailment of coal supplies and rakes has threatened the very survival of domestic aluminium industry with risk of loss of over one million livelihood and 5,000 SMEs in the downstream sector. Since August 21, the industry is getting just 50 per cent coal supplies, which has been drastically reduced to 10 per cent currently. The industry is struggling to sustain operations with alarmingly depleted coal stocks of only 1.5 to 3 days and is on the verge of stock out.

If coal shortage is not immediately addressed, the AAI said it may lead to the collapse of aluminium industry and associated SMEs. It also said this will lead to risk of livelihood for over one million local people and additional national forex loss of Rs 90,000 crore in form of imports.

The CNX Nifty is currently trading at 18023.30, down by 187.65 points or 1.03% after trading in a range of 18002.85 and 18190.70. There were 10 stocks advancing against 40 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 4.59%, Larsen & Toubro up by 2.78%, Maruti Suzuki up by 2.13%, Ultratech Cement up by 1.58% and Asian Paints up by 0.72%. On the flip side, Adani Ports &Special down by 5.80%, ITC down by 4.47%, ONGC down by 4.15%, Coal India down by 3.14% and ICICI Bank down by 2.46% were the top losers.

All Asian markets were trading in red, Jakarta Composite lost 71.13 points or 1.08% to 6,531.08, KOSPI fell 15.81 points or 0.52% to 3,009.68, Nikkei 225 slipped 278.15 points or 0.96% to 28,820.09, Hang Seng decreased 42.14 points or 0.16% to 25,586.60, Shanghai Composite declined 41.35 points or 1.16% to 3,520.96, Taiwan Weighted dropped 32.92 points or 0.19% to 17,041.63 and Straits Times was down by 9.40 points or 0.29% to 3,208.77.

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