Indian markets remain volatile; telecom stocks fall

Indian equity markets were witnessing volatility amid large intra-day swings as investors awaited macro data releases such as IIP and inflation numbers, with both Sensex and Nifty now trading in red, despite positive cues from other Asian markets. Sentiments got hit amid reports that GST officers have detected cases of ITC evasion of Rs 35,132 crore by 17,818 fake firms between April-October and arrested 69 persons. However, losses were limited, as the Ministry of Labour & Employment in its latest release has showed that retail inflation for farm workers and rural labourers witnessed a notable decline in the month of October 2024, easing to 5.96% and 6%, respectively as compared to 7.08% and 6.92% in October 2023.

On the global front, Asian markets were trading mostly in green, even after China's exports grew at a slower pace and imports posted an unexpected decline in November. Exports grew 6.7 percent annually in November, which was weaker than the 12.7 percent increase posted in October.

The BSE Sensex is currently trading at 81432.36, down by 76.10 points or 0.09% after trading in a range of 81380.65 and 81726.34. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index rose by 0.09%, while Small cap index was down by 0.04%.

The top gaining sectoral indices on the BSE were IT up by 0.74%, Realty up by 0.68%, TECK up by 0.32%, Metal up by 0.29% and FMCG up by 0.21%, while Telecom down by 0.99%, Utilities down by 0.99%, Power down by 0.65%, Oil & Gas down by 0.56% and Energy down by 0.48% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 1.33%, Bajaj Finserv up by 1.31%, Tata Steel up by 0.90%, HCL Tech. up by 0.79% and Titan up by 0.60%. On the flip side, Bharti Airtel down by 1.51%, Adani Ports & SEZ down by 1.37%, Tech Mahindra down by 0.97%, Ultratech Cement down by 0.85% and Reliance Industries down by 0.67% were the top losers.

Meanwhile, the Ministry of Labour & Employment in its latest release has showed that retail inflation for farm workers and rural labourers witnessed a notable decline in the month of October 2024, easing to 5.96% and 6%, respectively as compared to 7.08% and 6.92% in October 2023. This also represents a decrease from September's figures of 6.36% and 6.39%, respectively.

The recent release also noted that the All-India Consumer Price Index for Agricultural Labourers (CPI-AL) and Rural Labourers (CPI-RL) (Base: 1986-87=100) registered an increase of 11 points and 10 points in the months of October 2024, reaching levels of 1315 and 1326, respectively. The CPI-AL and CPI-RL were at 1,304 points and 1,316 points, respectively, in September 2024.

Meanwhile, breaching the Reserve Bank of India’s (RBI) upper tolerance level, India’s retail inflation based on Consumer Price Index (CPI) rose to a 14-month high of 6.21% in October 2024, as food inflation galloped on the back of rising vegetable prices. The RBI, which mainly factors in the CPI while arriving at its bi-monthly monetary policy, has been tasked by the government to ensure retail inflation remains at 4 percent with a margin of 2 percent on either side.

The CNX Nifty is currently trading at 24592.35, down by 26.65 points or 0.11% after trading in a range of 24568.55 and 24677.80. There were 16 stocks advancing against 33 stocks declining, while 1 stock remained unchanged on the index.

The top gainers on Nifty were Shriram Finance up by 2.22%, Wipro up by 1.83%, Infosys up by 1.44%, Bajaj Finserv up by 1.44% and Apollo Hospital Ent. up by 0.96%. On the flip side, Bharti Airtel down by 1.63%, Trent down by 1.58%, Dr. Reddy's Lab down by 1.53%, Adani Ports & SEZ down by 1.44% and Grasim Industries down by 1.26% were the top losers.

Asian markets were trading mostly in green; Hang Seng advanced 76.98 points or 0.38% to 20,491.07, Shanghai Composite strengthened 34.12 points or 1% to 3,436.65, Straits Times rose 19.84 points or 0.52% to 3,814.76, KOSPI increased 55.30 points or 2.34% to 2,415.88 and Nikkei 225 surged 160.54 points or 0.41% to 39,321.04, while Jakarta Composite plunged 17.95 points or 0.24% to 7,419.78 and  Taiwan Weighted lost 148.17 points or 0.64% to 23,125.08.