Markets remain in red in late morning deals

Domestic equity markets remained in red with Sensex falling around 500 points and Nifty declining over 175 points in late morning deals on account of selling by funds and retail investors. Sentiments remained weak as foreign institutional investors (FIIs) sold equities of Rs 3,411 crore on November 19.  Further, weakness also prevailed in markets as domestic rating agency Icra said India's real GDP growth for the September quarter is likely to decline to 6.5 per cent due to heavy rains and weaker corporate performance. Meanwhile, Adani Group stocks namely Adani Energy Solutions, Adani Power, Adani Enterprises, Adani Green Energy, Ambuja Cements, ACC and Adani Total Gas dropped after US prosecutors indicted billionaire Gautam Adani and seven other senior business executives in connection with an alleged $250 million bribery scheme.

On the global front, Asian markets were trading mixed following mixed cues from the US markets overnight. Back home, on the BSE sectoral front, traders were seen pilling up position in Realty, IT, Healthcare and TECK, while selling was witnessed in Utilities, PSU, Power, Oil & Gas and Energy

The BSE Sensex is currently trading at 77082.62, down by 495.76 points or 0.64% after trading in a range of 76802.73 and 77711.11. There were 9 stocks advancing against 21 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index was down by 0.21%, while Small cap index down by 0.57%.

The top gaining sectoral indices on the BSE were Realty up by 0.89%, IT up by 0.30%, Healthcare up by 0.29% and TECK up by 0.20%, while Utilities down by 3.44%, PSU down by 1.72%, Power down by 1.64%, Oil & Gas down by 1.45% and Energy down by 1.41% were the top losing indices on BSE.

The top gainers on the Sensex were Power Grid up by 2.09%, Axis Bank up by 0.75%, TCS up by 0.71%, Ultratech Cement up by 0.62% and HCL up by 0.53%. On the flip side, Adani Ports down by 15.98%, SBI down by 3.62%, Indusind Bank down by 2.65%, NTPC down by 1.88% and Titan down by 1.85% were the top losers.

Meanwhile, the Global Trade Research Initiative (GTRI) has said that India is set for a major change in its export trends, with outbound shipments of the services sectors expected to overtake merchandise exports by 2030 and touch $618 billion. It said between 2018-19 and 2023-24, the country's merchandise exports grew at a compound annual growth rate (CAGR) of 5.8 per cent, while services exports surged ahead at a robust CAGR of 10.5 per cent.

GTRI said at this rate, by FY2030, services exports are expected to reach $618.21 billion, edging past merchandise exports, which are projected at $613.04 billion. It noted that most growth in India's services sector comes from two categories -- software & IT services, and Other Business Services (OBS). Together they accounted for 86.4 per cent of total exports in the last fiscal year. It added that OBS, encompassing areas such as legal, accounting, tax consultancy, management consulting, and market research, generated $102.8 billion in 2023-24, representing 33.2 per cent of the total services exports. These industries leverage the country's highly skilled workforce and its burgeoning IT infrastructure, solidifying the nation's reputation as a global services powerhouse.

It stated that software and IT services, grouped under the broader category of 'telecommunications, computer, and information services' contributed $190.7 billion to India's exports in 2023-24. This segment represents 56.2 per cent of the total services exports, with about 80 per cent of these delivered digitally. Emerging technologies like generative AI, machine learning, and the Internet of Things are expanding opportunities for Indian firms, driving innovation and global demand for Indian expertise.

The CNX Nifty is currently trading at 23342.20, down by 176.30 points or 0.75% after trading in a range of 23263.15 and 23507.30. There were 15 stocks advancing against 35 stocks declining on the index.

The top gainers on Nifty were Power Grid up by 2.27%, Hindalco up by 1.23%, Axis Bank up by 0.97%, Ultratech Cement up by 0.86% and TCS up by 0.70%. On the flip side, Adani Enterprises down by 20.20%, Adani Ports down by 15.18%, SBI down by 3.66%, Indusind Bank down by 2.61% and Britannia down by 2.43% were the top losers.

Asian markets were trading mixed; Jakarta Composite gained 15.59 points or 0.22% to 7,195.93, Shanghai Composite strengthened 2.03 points or 0.06% to 3,370.02, Straits Times rose 1.06 points or 0.03% to 3,744.70 and KOSPI increased 6.78 points or 0.27% to 2,489.07. However, Hang Seng declined 36.56 points or 0.19% to 19,668.45, Nikkei 225 slipped 264.28 points or 0.69% to 38,088.06 and Taiwan Weighted lost 38.91 points or 0.17% to 22,649.45.