Key gauges end near day’s lows; Nifty below 23,900 mark

Indian equity benchmarks ended lower by over a percent on Tuesday due to widespread selling pressure amid sluggish global trends. Markets opened on a positive note as traders took support with government data showing that net direct tax collection grew 15.41 per cent to Rs 12.11 lakh crore between April 1 and November 10. This includes net corporate tax of Rs 5.10 lakh crore and non-corporate taxes (including taxes paid by individuals, HUFs, firms) of Rs 6.62 lakh crore. Other taxes (which include Equalisation Levy and gift tax) worth Rs 35,923 crore were mopped up. Traders took support as Union Minister Hardeep Singh Puri highlighted that India is moving towards a gas-based economy from the imported crude-based economy for its energy requirements. The minister stated that in recent years the government has taken transformative steps to increase domestic gas production and reduce India’s reliance on imports. Currently, India imports about 50 per cent of its natural gas needs, but with new investments in the upstream sector, this dependence is expected to come down over time.

But key gauges were unable to maintain momentum and turned volatile in late morning deals amid unabated foreign fund outflows. As per NSE data, Foreign Institutional Investors (FII) were net sellers of Indian equities worth Rs 2,306.88 crore on November 11. Markets fell sharply in second half of trading session to settle near day’s low levels as earnings disappointments, demand concerns, and weak performances across sectors led to sharp declines. Investors overlooked report that with an aim to further enhance the ease of doing business in India, the Reserve Bank of India (RBI) has relaxed norms by finalizing an operational framework for reclassification of Foreign Portfolio Investment made by foreign portfolio investors (FPIs) to Foreign Direct Investment (FDI) under Foreign Exchange Management (Non-debt Instruments) Rules, 2019, when they exceed the 10% ownership limit in an Indian company.

On the global front, European markets were trading lower as investors fret about China's economic recovery and wait for policy hints from the Trump administration. Asian markets settled mostly down on Tuesday as investors awaited clarity on U.S. President-elect Donald Trump's policy proposals and looked ahead to the release of key U.S. inflation readings this week for additional clues to the Fed's rate trajectory.  

Back home, on the sectoral front, telecom stocks were in focus with report that telecom sector regulator Trai is likely to finalise its recommendation on proposed rules related to spectrum allocation for satellite communications by December 15. There was some reaction in pharma stocks as a report by market research body Pharmarack showed that the Indian Pharma Market (IPM) registered a 6.1 per cent value growth in October 2024 with major therapies showing positive value growth. 

Finally, the BSE Sensex fell 820.97 points or 1.03% to 78,675.18, and the CNX Nifty was down by 257.85 points or 1.07% to 23,883.45.  

The BSE Sensex touched high and low of 79,820.98 and 78,547.84 respectively. There were 5 stocks advancing against 25 stocks declining on the index.

The broader indices ended in red; the BSE Mid cap index fell 0.98%, while Small cap index was down by 1.26%.

The lone gaining sectoral index on the BSE was Realty up by 0.14%, while Power down by 2.79%, PSU down by 2.26%, Utilities down by 2.20%, Capital Goods down by 2.14% and Auto down by 1.95% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 0.43%, Sun Pharma up by 0.28%, ICICI Bank up by 0.11% and TCS up by 0.02%. On the flip side, NTPC down by 3.16%, HDFC Bank down by 2.73%, Asian Paints down by 2.65%, SBI down by 2.52% and Tata Motors down by 2.46% were the top losers.

Meanwhile, Union Minister of Commerce and Industry Piyush Goyal has said that a $2 trillion export can only be achieved by collective efforts of all stakeholders. Goyal emphasized that this goal requires a strategic and collaborative effort, building on the momentum of India’s expected $800 billion in exports this year.

He said ‘Let us partner to achieve the export target of $2 trillion by 2030. Given that we will cross $800 billion this year, we will need to really put in a lot of effort collectively to achieve $2 trillion. It will not happen by chance. It will happen by choice.’ He added ‘And we will all have to start planning for that. We’ll have to find specific areas in which we shall all contribute, areas where we can play a greater role in the world economy.’

He also stressed the potential of India’s free trade agreements (FTAs) to open new markets and opportunities for businesses of all sizes. He said ‘And together, I am confident we can achieve this big target. Let us all work to take the free trade agreements that we have entered into, some that we will enter into in the next few years, to all our MSMEs, to all the small traders, to all our businesses, so that this information about new opportunities, new markets, new products, where we have access in our friendly countries can help us in grow business with these countries, help us in providing jobs to each and every one of our brothers and sisters.’

He emphasized that by utilizing these agreements effectively, Indian businesses could tap into new markets and create job opportunities domestically, further driving India’s economic growth. In addition to exports, Minister Goyal identified the need to address non-tariff barriers, calling for actionable suggestions that could strengthen India’s position in future trade negotiations.

The CNX Nifty traded in a range of 24,242.00 and 23,839.15. There were 4 stocks advancing against 46 stocks declining on the index.

The top gainers on Nifty were Trent up by 0.42%, Sun Pharma up by 0.13%, HCL Technologies up by 0.06% and Infosys up by 0.05%. On the flip side, Britannia Industries down by 7.30%, Bharat Electronics down by 3.49%, NTPC down by 3.12%, Asian Paints down by 2.86% and HDFC Bank down by 2.68% were the top losers.

European markets were trading lower; UK’s FTSE 100 decreased 80.27 points or 0.99% to 8,044.92, France’s CAC fell 94.22 points or 1.27% to 7,332.66 and Germany’s DAX lost 188.81 points or 0.97% to 19,259.79.

Asian markets settled mostly down on Tuesday as investors were cautiously awaiting US President-elect Donald Trump's stance on the economy, immigration, foreign policy and more. Meanwhile investors were awaiting key US inflation reading later in the week for directional cues. Chinese and Hong Kong shares declined as stimulus efforts in China failed to meet expectations. Meanwhile, Chinese yuan slumped after private report said that Trump is likely to appoint two men with track records of harshly criticizing China for key positions in his new administration, a sign ties between the superpowers may deteriorate further in coming years. Japanese shares declined, even a day after Japanese PM Shigeru Ishiba pledged more than $65 billion of support for the nation's semiconductor and artificial intelligence sector over the next decade.